The rate
The standard rate in India is 18%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Since 22 September 2025 GST runs two main slabs, 5% and 18%, with a 40% rate on a short demerit list. The 12% and 28% slabs were abolished. 18% remains the common rate for services.
Who must register
GST registration is compulsory above ₹40 lakh turnover for goods (₹20 lakh in special category states) and ₹20 lakh for services (₹10 lakh in special category states); inter-state and e-commerce sellers must register regardless.
How to register
Registration is online at gst.gov.in under Services, Registration, New Registration. Part A collects PAN, mobile number and email and returns a Temporary Reference Number. The same reference is used to log in again and complete Part B. A person who is a promoter or partner may also have to complete Aadhaar authentication; where the portal flags the application for physical verification, the officer may visit the place of business.
Under rule 9 of the CGST Rules, 2017, a properly completed application is approved within seven working days of submission. If Aadhaar authentication is not completed, or the application is selected for physical verification on risk parameters or by the officer, registration is granted within thirty days of submission after verification of the place of business. Where the officer finds the application deficient, rule 9(2) lets the officer ask for clarification or documents.
Filing and paying
Registered and filed with Central Board of Indirect Taxes and Customs (CBIC).
GSTR-1 (sales) by the 11th and GSTR-3B (summary and payment) by the 20th of the following month; small taxpayers may file quarterly under QRMP. Annual GSTR-9 by 31 December.
Penalties for getting it wrong
Late fee of ₹50 a day (₹20 for nil returns) per return plus 18% interest on tax paid late.