In a traditional distribution format, a forward supply chain comprises networks of entities including manufacturers, stockists, wholesalers, and retailers. Business incentives, such as discounts, are a common trade practice among these entities. But is GST applicable to sales incentives?This article discusses and explains the types of trade incentives, the implications of GST on incentives, and the GST rate on incentives received. Key takeawaysApplicability of GST on incentives depends significantly on the nature of an incentive and the underlying conditions.GST is applicable only when incentives are part of the consideration for services separately provided by the recipient (e.g., promotional activities).When incentives are pure price reductions, GST does not apply. This includes pre-agreed in-bill discounts or volume discounts adjusted through credit notes on original invoices.Businesses must understand these distinctions to ensure compliance and avoid penalties. What are the Incentives, Discounts, and Schemes Offered by Suppliers?In trades, people often equate incentives with discounts and schemes. Though they carry different meanings in a trading context, they can have different tax implications for suppliers and buyers.  Incentives - These are benefits suppliers offer to their dealers for meeting specific, pre-determined goals.

Automobile tyres mostly use natural rubber as inputs. However, applicable GST rates on tyres vary significantly compared to other rubber-derived finished products, like gloves, latex threads, etc. In addition, GST rates on different tyres also differ widely. This article discusses the applicability of GST rates and HSN codes of various kinds of tyres, with the latest updates from the 56th GST Council Meeting 2025. Key Takeaways1. The 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:New Pneumatic tyres: GST will be reduced from 28% to 18%, covering tyres for bicycles, cycle-rickshaws, and three-wheeled powered cycle rickshaws.Tractor tyres and tubes: GST reduced from 18% to 5%, covering rear tractor tyres, tyres for tractors, and tubes for tractor tyres.Tyre cord fabric: GST  will be reduced from 12% to 5%, including high tenacity yarn of nylon, polyamides, polyesters, or viscose rayon.What is the GST on Tyres? Before the introduction of GST, tyre manufacturers, dealers and traders had to deal with multiple types of indirect taxes.Pre-GST, basic customs duty (BCD) for importing natural dry rubber was around 20%.Post-manufacturing, Original Equipment Manufacturers (OEMs) were required to pay Value Added Tax, Central Excise, etc. Dealers and traders paid state-specific taxes such as sales tax and octroi.GST unified all these different taxes with a single tax structure throughout India.

Every car and two-wheeler owner needs to spend on a few recurring expenses, regardless of how often they use their vehicles. Motor vehicle insurance is one of them. In recent years, premiums for motor vehicle insurance have gone up. Many attribute this increase to higher GST rates. There also needs to be more clarity about the applicability of GST to motor vehicle insurance claims. This article explains all the details about GST's implications for motor vehicle insurance premiums, claims, and salvage value.

India has pledged to work for sustainability and become a net zero country by 2070. Electric Vehicles are the key to reducing carbon emissions and fostering a cleaner environment. So, it is crucial to understand the GST on electric vehicles and their impact on customers. This blog discusses how GST on electric vehicles and government policies shape the EV market.Key TakeawaysThe 56th GST Council meeting has announced important updates with changes effective from 22nd September 2025:Electric vehicles (EVs) will continue to attract 5% GST, while other motor vehicles have seen revised rates of 18% (for smaller vehicles) and 40% (for larger SUVs and high-engine capacity vehicles).Current GST Rate on Electric VehiclesThe GST rates on EV cars and charging stations were cut in 2019 to make them more affordable for mass adoption. The HSN code for EV cars is 870240.

The government is bringing some significant changes to the existing Goods and Services Tax (GST) framework for ease of business, enhanced tax governance, strengthened digital security, and driven operational consistency. This new financial year, starting on 01.04.2025, businesses shouldn't expect any less but rather be prepared in advance. Read out and discover the key updates that will help you stay ahead.Key Changes effective from 1st April, 2025Mandatory Multi-Factor Authentication (MFA)The National Informatics Centre (NIC) introduced two-factor authentication (2FA)/multi-factor authentication(MFA) to log in to the e-way bill or e-invoice system a long time ago. This measure required taxpayers to authenticate their login using two or more verification methods, reducing the risk of unauthorised access.​Implementation Timeline:January 1, 2025: Mandatory for taxpayers with an Annual Aggregate Turnover (AATO) exceeding ₹20 Crores.​February 1, 2025: Extended to taxpayers with an AATO exceeding ₹5 Crores.​April 1, 2025: Applicable to all taxpayers, irrespective of turnover.​Compulsory Input Service Distributor (ISD) RegistrationUntil now, organisations with multiple GST registrations under a single PAN could either use the Input Service Distributor (ISD) mechanism or adopt a cross-charge approach to distribute common input services like rent, audit fees, and software licenses across different units. Many opted for cross-charge due to its operational simplicity, despite its complexities in ITC distribution and tax reconciliation,However, from April 1, 2025, ISD registration will become mandatory for such taxpayers.

Future of GST remains dynamic. GST law and the system is constantly evolving, even in its 8th year. Tax compliance has become much easier under the GST regime as businesses can perform every compliance task through a single window of the online GST portal. Zero manual intervention has reduced the chances of corruption and harassment by unscrupulous tax officials. But it has its own set of complexities. GST compliance requires businesses to achieve a high level of technology adoption and a tech learning curve.

The primary aim of the Goods and Services Tax in India was to remove complexities from the highly fragmented indirect tax system that prevailed in the country before 2017 and build India as 'one nation, one market'. However, the GST Act has replaced one set of complications with another.This article discusses GST rate rationalisation, why it is necessary and the hurdles the GST Council faces in rationalising GST rates. Stay with us.Key Takeaways1. The most awaited 56th GST Council meeting happened 3rd September 2025. The council rationalised the GST rate structure from four GST slabs (5%, 12%, 18%, 28%) to a simplified structure:Standard rate: 18% - Applicable to most goods and servicesMerit rate: 5% - For essential items and priority sectorsDemerit rate: 40% - Selective application to sin goods and luxury items2.

NRIs are Indian citizens living abroad for business, employment, education or other purposes. They pay GST on purchases of goods and services while visiting India. However, some of their purchases are eligible for a GST refund. This article discusses the eligibility for GST refunds among NRIs and the process of claiming such refunds. Key TakeawaysNon-resident Indians (NRIs) are eligible for GST refunds on specific transactions. Primarily, health and life insurance premiums paid from NRE accounts are eligible for claiming GST refunds. Claiming a refund of GST paid involves registration on the GST portal and filing the RFD-01 form.Rent from commercial properties exceeding Rs 20 lakhs is liable to pay GST. GST-registered NRIs can claim ITC on GST collected on their commercial rent income. The Reverse Charge Mechanism (RCM) applies to non-registered NRIs earning GST-applicable rent income.  The maximum time limit for claiming a GST refund is 2 years from the date of the GST payment.What is the GST Refund for NRIs in India?The GST refund for NRIs is a provision within the GST Act, 2017, that allows only the eligible Indian citizens living abroad to reclaim GST paid in India in specific cases.

Businesses with a turnover exceeding Rs. 2 Crore annually must file GSTR-9 before 31st December. But, before filing the return, you have to check the accuracy of your data. You should ensure the GSTR-9 audit checklist is in place to fill in the details correctly and avoid penalties. In this blog, you will learn the GSTR-9 audit checklist and how to use it.Objectives of the GSTR-9 AuditGSTR-9 is a summary return of all GST-related activity for a business for the entire year.

The GST portal is a robust yet complex web application with many functionalities and features related to registration, return filing, tax payment, refund claims, and other compliance issues. The portal lists different error codes and solutions to them. Some error messages, like ‘Invalid Summary Payload,’ remain unresolved. Understanding such system-generated error messages is essential to navigating through the portal effectively. This article discusses one of those error messages that many taxpayers may encounter while submitting GSTR-9.  What is the Invalid Summary Payload Error?‘Invalid Summary Error’ is a system-generated error message in the GST portal that taxpayers may encounter while manually uploading a JSON file to the GST portal for GSTR-9 return submission.This error message rarely appears when offline utilities, like Excel-based tools, are used to prepare declarations in JSON format. However, the message may sometimes appear once the taxpayer tries to upload the offline-validated data in JSON format.Causes of the ‘Invalid Summary Payload’ errorA ‘Payload error’ in the JSON data structuring means an existence of syntax error in data.