Rule 78 of the CGST Rules, 2017, facilitates the matching of details of supplies, specifically the state of place of supply and net taxable value, between the information furnished by an e-commerce operator in FORM GSTR-8 and the corresponding details declared by the supplier in FORM GSTR-1. It is part of the electronic commerce compliance mechanism.
Section 78 of the CGST Act, 2017 deals with recovery of penalties following a demand order. Here's the core legal point: If a taxpayer fails to pay tax and interest within 30 days of the order issued under Section 73 or 74, the full 100% penalty applies (for fraud cases under Section 74).
The following category of tax persons are exempted from payment of 1% of GST in Cash 1. Registered taxpayers who have paid income tax above Rs 1.00 in Income Tax during the last two years continuously 2. Taxpayers who have zero-rated supplies without payment of duty and claimed refund of more than Rs 1.00 lac 3.
* Section 76. Tax collected but not paid to Government.-
(3) The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person and thereupon such person shall pay the amount so determined.
78/2020 – Central Tax dated 15th October, 2020, it is mandatory for the taxpayers to report minimum 4 digits or 6 digits of HSN Code in Table-12 of GSTR-1 on the basis of their Aggregate Annual Turnover (AATO) in the preceding Financial Year. To view the detailed notification, please click here.
The New GST Rate Structure
The 12% and 28% slabs were eliminated and replaced with a new structure, which is now primarily 0%, 5%, 18%, and a 40% rate for luxury and “sin” goods. This change has impacted the pricing of many goods, including: Reduced to 18%: Items like electronic appliances and small cars.
78/2017-Customs dated 13.10. 2017 was issued by DOR extending exemption of integrated tax and compensation cess on import made by EOUs. The EOUs are allowed duty free imports of goods as well as domestic procurement of good. The notification 52/2003-Customs dated 31-3-2003 (as amended) governs the duty import by EOUs.
Section 79 of the GST Act furnishes towards recovering the outstanding GST dues, using distinct methods to ensure compliance and safeguard the government revenue.
For any standard-rated supplies of goods or services that you make on or after 1 Jan 2024, you must charge GST at 9%. For instance, if you issue an invoice and receive payments for your supply on or after 1 Jan 2024, you must account for GST at 9%.
Types of GST in India
CGST (Central Goods and Services Tax) SGST (State Goods and Services. IGST (Integrated Goods and Services Tax) UTGST (Union Territory Goods and Services Tax)
Section 269ST limits cash receipts to Rs. 2 lakh or more in a single day from a single person. Any cash payment or receipt exceeding this limit is prohibited.
Common Examples of GST Exempt Transactions:
Financial services – Most banking services, interest payments, and insurance premiums. Residential rent – Rental income from residential properties. Donated goods and services – Items or services that are given away without payment.
Taxable Supplies
Section 74 of the CGST Act penalty
A penalty of 25% - if the taxpayer, upon receiving the DRC-01, makes full payment within 30 days of the notice's issuance. A penalty of 50% - if the taxpayer, upon receiving the DRC-07, makes full payment within 30 days of the order's issuance.
Goods and services tax credit
According to the federal government, the maximum annual amount an individual may receive from July 2025 to June 2026 is $533, while a married or common-law couple could see up to $698 combined.
How to Avoid GST on Overseas Purchases Legally
By this update, taxpayers will not be able to file GST returns after three years from the due date of such return. The CBIC notified us of this change effective 1st October 2023, and the GSTN has now brought this validation live on the official GST portal starting from July 2025.
Some of the major tax changes effective from April 1, 2025, are revised tax slabs, rebate of up to Rs. 60,000, revised ITRU deadlines, calculation of partner's remuneration allowable as a deduction and revised TDS/TCS threshold limits.
A. According to Rule 42 of the CGST Act, 2017, common credits which are used for both taxable as well as non-taxable/exempt supplies proportionate ITC amount to the extent of supplies that are non-taxable/used for personal consumption shall be identified and reversed.
Only resident individuals are eligible to avail rebate under this section. Rebate under Section 87A is available to taxpayers whose income does not exceed: Rs. 12 lakh under the new tax regime and. Rs. 5 lakh under the old regime.
If there is an amnesty announced by the government for the default, then the GST penalty could be conditionally waived off.
If you're registered for GST, the amount paid at the border can be claimed back as a credit in your Business Activity Statement (BAS), provided certain conditions are met. This makes understanding your GST obligations crucial to maintaining accurate records and cash flow.
ITC is ineligible if the tax component is included in the depreciation claimed under the Income Tax Act, as double benefits are not permitted.