GST Advisory

Since 1st July 2017, the Indian government has implemented the Goods and Services Tax (GST), an indirect tax applicable to the majority of domestic products and services. The GST is a unified tax system that covers the entire country, generating revenue for the government.
As of 18th July 2022, the updated GST tax structure came into effect after being approved during the 47th session of the GST council held in Chandigarh. Consequently, several food items, including pre-packaged and labeled ones such as paneer, rice, wheat, jaggery, curd, and lassi, have experienced price increases. These common household items are now subject to a 5% GST from 18th July. Additionally, certain labeled food items like meat, fish, puffed rice, dried makhana, and meslin flour are also subject to a 5% GST, which was not previously applicable to these commodities. However, loose, unbranded, and unlabeled commodities will remain exempt from the GST.
Furthermore, GST rates for hotel and banking services have been revised. Bank charges for issuing checks are now subject to the new GST rate of 18%. Additionally, hotel rooms will no longer be excluded from GST and will instead attract a 12.5% tax.
Businesses that engage in the sale of goods or services and have an annual turnover of at least ₹40 lakhs or ₹20 lakhs, depending on the state, are required to be registered for GST and possess a valid GST Number. It is important to note that the GST is applicable to supplies rather than just sales, encompassing inventory, sales, and gifts. Regardless of sales volume, any business selling to another state must register for GST.