Law4u - Made in India

Who is liable to pay GST, and how is it calculated?

11-Mar-2023
GST

Answer By law4u team

In India, GST (Goods and Services Tax) is a destination-based consumption tax, which means that it is ultimately borne by the end consumer of goods and services. However, GST is collected and paid by businesses throughout the supply chain, and they can claim a credit for the GST paid on their purchases (input tax credit) against the GST collected on their sales (output tax). The following entities are liable to pay GST: Registered Taxable Persons: Businesses whose turnover exceeds the GST threshold limit of Rs. 40 lakhs (Rs. 20 lakhs for special category states) are required to register for GST and are liable to pay GST. Casual Taxable Persons: Persons who occasionally supply goods and services in a taxable territory but do not have a fixed place of business in that territory are required to register as a casual taxable person and are liable to pay GST. Non-Resident Taxable Persons: Non-resident persons who supply goods and services in a taxable territory are required to register as a non-resident taxable person and are liable to pay GST. Tax Deductors: Certain businesses, such as government agencies and large corporations, are required to deduct GST at the time of making payments to suppliers, and are liable to pay GST on behalf of the suppliers. The calculation of GST is based on the value of the goods or services supplied and the applicable GST rate. The GST rate applicable to a particular good or service is determined by its classification under the four GST rate slabs (5%, 12%, 18%, or 28%). For example, if the value of a good is Rs. 1,000 and the applicable GST rate is 18%, then the GST payable on the good would be Rs. 180 (18% of Rs. 1,000). The total price of the good, including GST, would be Rs. 1,180.

GST Verified Advocates

Get expert legal advice instantly.

Advocate Nidhi Upman

Advocate Nidhi Upman

Arbitration, Banking & Finance, Civil, Court Marriage, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, Family, High Court, Insurance, Motor Accident, Muslim Law, Property, Recovery

Get Advice
Advocate Rizwan Ahmad Poonawala

Advocate Rizwan Ahmad Poonawala

Arbitration, Banking & Finance, Civil, Consumer Court, Corporate, Criminal, Cyber Crime, GST, Domestic Violence, Muslim Law, Property, Tax

Get Advice
Advocate Azay Kumar Mishra

Advocate Azay Kumar Mishra

Anticipatory Bail, Civil, Consumer Court, Criminal, Domestic Violence, High Court, GST, Divorce, Tax, Trademark & Copyright, Cheque Bounce

Get Advice
Advocate R S Raghuwanshi

Advocate R S Raghuwanshi

Cheque Bounce, Civil, Criminal, GST, Domestic Violence, Family, Insurance, Motor Accident, Tax, Trademark & Copyright

Get Advice
Advocate Ravi Sankara Reddy P

Advocate Ravi Sankara Reddy P

Anticipatory Bail, Arbitration, Cheque Bounce, Child Custody, Civil, Corporate, Criminal, Cyber Crime, Divorce, GST, Domestic Violence, Family, High Court, Insurance, Labour & Service, Landlord & Tenant, Media and Entertainment, Motor Accident, NCLT, Property, RERA, Recovery, Startup, Tax, Trademark & Copyright, Wills Trusts, Revenue, Banking & Finance, Bankruptcy & Insolvency, Breach of Contract, Supreme Court

Get Advice
Advocate Alok Kumar

Advocate Alok Kumar

GST, Customs & Central Excise, Tax, Corporate, Trademark & Copyright

Get Advice
Advocate Kailash Chand Gupta

Advocate Kailash Chand Gupta

GST, High Court, Civil, Anticipatory Bail, Family

Get Advice
Advocate Azharuddin Khandakar

Advocate Azharuddin Khandakar

Tax, Trademark & Copyright, High Court, Anticipatory Bail, Cheque Bounce, Civil, Consumer Court, Criminal, GST, Labour & Service, Landlord & Tenant, Motor Accident, Muslim Law, Recovery, RERA, Supreme Court

Get Advice
Advocate Adarsh Sunil Damodar

Advocate Adarsh Sunil Damodar

Anticipatory Bail, Cheque Bounce, Child Custody, Civil, Consumer Court, Breach of Contract, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Immigration, Insurance, Labour & Service, Landlord & Tenant, Media and Entertainment, Medical Negligence, Motor Accident, Muslim Law, Patent, NCLT, Property, R.T.I, Recovery, RERA, Startup, Succession Certificate, Supreme Court, Tax, Trademark & Copyright, Wills Trusts, Revenue, Banking & Finance, Arbitration, Bankruptcy & Insolvency, Corporate, Customs & Central Excise, International Law, Armed Forces Tribunal

Get Advice
Advocate Anand C Makwana

Advocate Anand C Makwana

Anticipatory Bail, Armed Forces Tribunal, Banking & Finance, Cheque Bounce, Child Custody, Corporate, Court Marriage, Criminal, Cyber Crime, Divorce, Documentation, GST, Domestic Violence, Family, High Court, Insurance, Motor Accident, Muslim Law, Property, R.T.I, Trademark & Copyright, Wills Trusts, Revenue

Get Advice

GST Related Questions

Discover clear and detailed answers to common questions about Breach of Contract. Learn about procedures and more in straightforward language.