What is GSTR-3B and when is it due?

GSTR-3B is a monthly self-declared summary GST return. For regular taxpayers, it is due by the 20th of the following month. Late filing attracts ₹50/day late fee (₹25 CGST + ₹25 SGST), capped at ₹5,000.

How do I reply to a DRC-01 GST notice?

DRC-01 is a show-cause notice for tax demand. Log in to GST portal, go to Services > User Services > View Additional Notices, select the notice and file a reply within 30 days — either agreeing and paying, or disputing with supporting documents.

What is the late fee for filing GSTR-1 late?

Late fee for GSTR-1 is ₹50/day (₹25 CGST + ₹25 SGST). For nil returns it is ₹20/day. Maximum cap is ₹10,000 per return. GSTR-1 is due by the 11th of each month for monthly filers.

Can I claim ITC on hotel and restaurant bills?

ITC on restaurant food and beverages is blocked under Section 17(5) CGST Act — not claimable. However, ITC on hotel accommodation is allowed if used for business purposes and the hotel provides a GST invoice with your GSTIN.

What is the GST registration threshold in India?

GST registration is mandatory if annual aggregate turnover exceeds ₹40 lakhs for goods (₹20 lakhs for special category states) or ₹20 lakhs for services (₹10 lakhs for special category states). E-commerce sellers must register regardless of turnover.

GST vs Income Tax: What's the Difference and Do You Need to Pay Both?

sai krishna
Apr 19
2 min read

One of the most common questions from new business owners in India is: 'If I pay Income Tax, do I still need to pay GST?' The answer is YES — and they are completely different taxes. Here's everything you need to know.

What is GST?

GST (Goods and Services Tax) is an indirect tax on the supply of goods and services. It is collected by you (the seller) from your customer and deposited with the government. You are just a collector — the customer ultimately bears the cost. GST is transaction-based: every sale you make may attract GST.

What is Income Tax?

Income Tax is a direct tax on your income — profit earned by you personally or by your business. You pay it from your own pocket based on your net profit after deductions. It is filed annually through ITR (Income Tax Return) and has nothing to do with GST.

Key Differences at a Glance

Do You Need to Pay Both?

YES — if your turnover exceeds the GST threshold (Rs 40 lakh for goods, Rs 20 lakh for services), you must register for GST AND file Income Tax returns. Example: A trader with Rs 60 lakh annual turnover must: Register under GST and file GSTR-1 and GSTR-3B monthly, AND file ITR (Income Tax Return) annually on profit earned.

Can GST Paid Be Deducted from Income Tax?

YES — GST paid on business expenses is deductible as a business expense in your Income Tax calculation. However, ITC (Input Tax Credit) claimed under GST cannot be separately deducted again in Income Tax. The net GST cost (after ITC) is the deductible amount. Always consult a CA to maximize your tax planning.

Quick Summary for Business Owners

1. GST = Tax on sales — you collect from customers and pay to government. 2. Income Tax = Tax on profit — you pay from your own earnings. 3. Both are mandatory above threshold limits. 4. Missing either can result in serious penalties and interest. 5. A good CA or GSTvala's guides can help you stay 100% compliant on both.