⚡ GST Quick-Fire: 5 Qs Every Fresher Should Know
Q1. What's the difference between CGST, SGST, and IGST?
👉 CGST + SGST apply on intra-state sales (split between Centre & State). IGST applies on inter-state sales (goes to Centre, then settled with states).
Q2. What is Input Tax Credit (ITC)?
👉 Credit for GST already paid on purchases, which can be set off against GST payable on sales — prevents double taxation.
Q3. What's the difference between "Nil-rated," "Zero-rated," and "Exempt" supplies?
👉 Nil-rated = taxed at 0%. Zero-rated = exports/SEZ supplies, ITC still claimable. Exempt = no GST at all, and ITC can't be claimed on inputs.
Q4. What is the Reverse Charge Mechanism (RCM)?
👉 Normally the supplier pays GST, but under RCM, the recipient pays it directly — common for imports and certain notified services.
Q5. What happens if a supplier doesn't file their GST return?
👉 The buyer's ITC claim can get blocked, even if the buyer paid GST correctly — this is why vendor compliance matters.
