GST Act 2017
GST Act, 2017 – Section-Wise Overview
The Goods and Services Tax (GST) Act, 2017 is a comprehensive indirect tax law in India that replaced multiple taxes like VAT, Service Tax, and Excise Duty. It is divided into multiple sections covering levy, registration, input tax credit, returns, penalties, and appeals.
📌 Key Sections of the GST Act, 2017
1️⃣ Introduction & Basic Provisions
| Section | Provision |
|---|---|
| Section 1 | Short title, extent, and commencement. |
| Section 2 | Definitions (e.g., taxable person, aggregate turnover, supply). |
| Section 3 | Officers under GST. |
🔹 Example: A business with an annual turnover above ₹40 lakh (₹10 lakh for special category states) must register under GST.
2️⃣ Levy & Collection of GST (Sections 7-14)
| Section | Provision |
|---|---|
| Section 7 | Definition of Supply (Goods/Services). |
| Section 8 | Composite & Mixed Supply. |
| Section 9 | Levy & Collection of GST. |
| Section 10 | Composition Scheme for small taxpayers. |
| Section 11 | Exemptions under GST. |
| Section 12-13 | Time of Supply (Goods & Services). |
| Section 14 | Change in rate of tax on supply. |
🔹 Example: If a restaurant opts for the Composition Scheme under Section 10, it pays 5% GST without Input Tax Credit (ITC).
3️⃣ Registration & Compliance (Sections 22-30)
| Section | Provision |
|---|---|
| Section 22 | Compulsory Registration (Turnover limits). |
| Section 23 | Exemptions from registration. |
| Section 24 | Mandatory Registration (E-commerce, Interstate sales). |
| Section 25 | Procedure for registration. |
| Section 27 | Registration for casual/non-resident taxable persons. |
| Section 28 | Amendment of GST registration. |
| Section 29 | Cancellation of registration. |
🔹 Example: Amazon sellers must register under GST (Section 24) even if turnover is below the threshold.
4️⃣ Input Tax Credit (ITC) (Sections 16-21)
| Section | Provision |
|---|---|
| Section 16 | Eligibility & conditions for Input Tax Credit (ITC). |
| Section 17 | Blocked credits (e.g., motor vehicles, personal expenses). |
| Section 18 | ITC on new registration or voluntary registration. |
| Section 19 | ITC in case of stock transfer. |
| Section 20 | ITC distribution by Input Service Distributor (ISD). |
| Section 21 | Recovery of ITC wrongly availed. |
🔹 Example: A trader can claim ITC on raw material GST paid (Section 16) but not on personal car purchase (Section 17).
5️⃣ Tax Invoice, Credit/Debit Notes (Sections 31-34)
| Section | Provision |
|---|---|
| Section 31 | Tax Invoice rules. |
| Section 32 | Prohibition of unauthorized tax collection. |
| Section 33 | Amount of tax to be separately shown in invoices. |
| Section 34 | Issuance of Credit & Debit Notes. |
🔹 Example: A seller issuing a Credit Note (Section 34) for a defective product can reduce GST liability.
6️⃣ Returns & Tax Payment (Sections 37-45)
| Section | Provision |
|---|---|
| Section 37 | GSTR-1 (Outward supplies return). |
| Section 38 | GSTR-2A & GSTR-2B (Auto-drafted ITC details). |
| Section 39 | GSTR-3B (Monthly summary return). |
| Section 40 | First return after GST registration. |
| Section 41 | Provisional ITC claim. |
| Section 42 | Matching, reversal & reclaim of ITC. |
| Section 44 | Annual return (GSTR-9). |
| Section 45 | Final return in case of closure. |
🔹 Example: Businesses must file GSTR-3B monthly (Section 39) and GSTR-9 annually (Section 44).
7️⃣ Assessment & Audit (Sections 59-66)
| Section | Provision |
|---|---|
| Section 59 | Self-assessment of tax. |
| Section 60 | Provisional assessment. |
| Section 61 | Scrutiny of returns. |
| Section 62 | Assessment of non-filers. |
| Section 63 | Assessment of unregistered persons. |
| Section 65 | Audit by tax authorities. |
🔹 Example: If a business fails to file GST returns, the tax officer can issue an assessment under Section 62.
8️⃣ Offenses & Penalties (Sections 122-138)
| Section | Provision |
|---|---|
| Section 122 | Penalty for non-payment, fraud, evasion. |
| Section 123 | Penalty for incorrect invoices. |
| Section 124 | Failure to furnish information. |
| Section 125 | General penalty (₹25,000 max). |
| Section 129 | Detention & seizure of goods for tax evasion. |
| Section 132 | Prosecution for GST fraud. |
🔹 Example: If a business collects GST but doesn’t pay it, a penalty under Section 122 applies.
9️⃣ Appeals & Dispute Resolution (Sections 107-121)
| Section | Provision |
|---|---|
| Section 107 | Appeal to Appellate Authority. |
| Section 108 | Powers of Revisional Authority. |
| Section 110 | Constitution of GST Appellate Tribunal (GSTAT). |
| Section 116 | Procedure for appeals. |
🔹 Example: If a taxpayer disputes a GST penalty, they can appeal under Section 107.
🔹 GST Rate Slabs (Common Goods & Services)
✔ 0% GST – Essential goods (milk, books, healthcare)
✔ 5% GST – Packaged food, train tickets
✔ 12% GST – Mobile phones, hotel rooms below ₹7,500
✔ 18% GST – AC hotels, restaurants, software services
✔ 28% GST – Luxury items (cars, tobacco, aerated drinks)
🔹 Frequently Asked Questions (FAQs) on GST
❓ Who needs to register for GST?
🔹 Businesses with an annual turnover above ₹40 lakh (₹10 lakh for special category states) must register.
❓ What is the due date for GSTR-3B filing?
🔹 20th of every month for most taxpayers.
❓ Can I claim ITC on all purchases?
🔹 No, ITC is not available for personal expenses, motor vehicles, and employee-related expenses.
❓ Is GST applicable to freelancers?
🔹 Yes, freelancers earning above ₹20 lakh must register & pay GST.
🔥 Conclusion
The GST Act, 2017, is a unified tax structure that simplifies compliance and reduces tax evasion.
💡 Need help with GST registration, filing, or compliance? Let me know! 😊
