How to Register GROSS

1) What is GST?

GST is an Indirect Tax which has replaced many Indirect Taxes in India. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017. The Act came into effect on 1st July 2017. Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition.
In simple words, Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. GST is one indirect tax for the entire country.

2) What are the components of GST?

There are 3 taxes applicable under this system: CGST, SGST & IGST.
  • CGST : Collected by the Central Government on an intra-state sale (eg. Within Maharashtra)
  • SGST : Collected by the State Government on an intra-state sale (eg. Within Maharashtra)
  • IGST : Collected by the Central Government for inter-state sale (eg. Maharashtra to Tamil Nadu)

Transaction New Regime Old Regime Effect
Sale within the State CGST + SGST VAT + Central Excise/Service tax Revenue will be shared equally between the Centre and the State
Sale to another State IGST Central Sales Tax + Excise/Service Tax There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.

3) What is HSN Code?

The Harmonized Commodity Description and Coding System generally refers to “Harmonized System of Nomenclature" or simply “HSN". It is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). It first came into effect in 1988. The purpose of HSN codes is to make GST systematic and globally accepted. HSN codes will remove the need to upload the detailed description of the goods. This will save time and make filing easier since GST returns are automated.

GST - Offences & Penalties


There are 21 offenses under GST. We have mentioned a few here. For the entire list of 21 offenses please go to our main article on offenses.
The major offenses under GST are:
  • Not registering under GST, even though required by law. (Read our article for the list of those who have to register mandatorily under GST)
  • Supply of any goods/services without any invoice or issuing a false invoice
  • The issue of invoices by a taxable person using the GSTIN of another bona fide taxpayer
  • Submission of false information while registering under GST
  • Submission of fake financial records/documents or files, or fake returns to evade tax
  • Obtaining refunds by fraud
  • Deliberate suppression of sales to evade tax
  • Opting for composition scheme even though a taxpayer is ineligible


If any of the offenses are committed then a penalty will have to be paid under GST. The principles on which these penalties are based are also mentioned by law.