Complete GST Guide 2026: Registration, Returns, Refund, Exemptions & Latest Updates Explained

 

Goods and Services Tax (GST) is one of the biggest tax reforms in India. Since its launch on 1st July 2017, GST has changed the way businesses handle indirect taxes. But even today, many taxpayers are confused about registration, returns, refunds, exemptions, notices, and the latest updates.

In this detailed guide, My Finance Gyan covers all major GST topics in one place. This blog will help business owners, traders, MSMEs, and professionals understand GST in a simple and practical way.

What is GST (Goods and Services Tax)?

GST stands for Goods and Services Tax. It is an indirect tax that replaced multiple taxes like VAT, Service Tax, Excise Duty, and others.

GST is charged on the supply of goods and services and is collected at every stage of value addition.

Types (Models) of GST in India

There are four main models of GST:

1. CGST (Central GST) – Collected by the Central Government.
2. SGST (State GST) – Collected by State Government.
3. IGST (Integrated GST) – Applied on interstate transactions.
4. UTGST (Union Territory GST) – For Union Territories.

At My Finance Gyan, we always explain GST models in simple language so even beginners can understand the structure easily.

GST Registration: Types, Documents & Benefits

GST registration is mandatory if your turnover exceeds the prescribed limit.

Who Must Register?

• Businesses with turnover above ₹40 lakh (₹20 lakh in some states/services).
• Interstate suppliers.
• E-commerce sellers.
• Casual taxable persons.
• Non-resident taxable persons.

Types of GST Registration

• Regular Taxpayer
• Composition Scheme
• Casual Taxpayer
• Non-resident Taxpayer

Documents Required

• PAN card
• Aadhaar card
• Business address proof
• Bank details
• Photographs

Benefits of GST Registration

Many small businesses ignore its advantages. But registration helps in:

• Legal recognition
• Input Tax Credit (ITC)
• Easy expansion
• Better credibility

According to My Finance Gyan, proper GST registration improves business growth and compliance confidence.

Rule 14A & New 3-Day GST Registration System (2025 Update)

The government introduced faster verification under Rule 14A.

Now in many cases, GST registration is processed within 3 working days if Aadhaar authentication is successful.

This move increases transparency and reduces fake registrations.

My Finance Gyan regularly tracks such compliance updates so businesses stay informed and avoid delays.

GST 2.0 in India – What’s Changing?

GST 2.0 aims to simplify compliance and strengthen the system.

Key features include:

• Stricter return filing rules
• AI-based verification
• Stronger ITC matching system
• Faster refund processing

GST 2.0 focuses on digital compliance and transparency. Businesses must adapt quickly to avoid penalties.

GST Returns: Types & Filing Process

Filing GST returns on time is very important.

Common GST Returns

• GSTR-1 – Sales details
• GSTR-3B – Monthly summary return
• GSTR-9 – Annual return

Returns can be filed online through the GST portal.

3-Year Filing Deadline Rule

From July 2025, GST returns cannot be filed after 3 years from the due date. This rule is strictly enforced.

Missing deadlines can permanently block return filing. That’s why My Finance Gyan always alerts readers about compliance timelines.

GST Refund – Time Limit & Process

GST refund is allowed in cases like:

• Excess tax paid
• Export of goods/services
• Inverted duty structure
• Cancellation of registration

Time Limit for Refund

Refund must generally be claimed within 2 years from the relevant date.

Refund Process

1. File refund application in Form RFD-01
2. Submit supporting documents
3. Officer verification
4. Refund approval or rejection

Understanding the refund process helps avoid unnecessary rejection.

GST Amnesty Scheme 2025

The government introduced the New GST Amnesty Scheme 2025 to give relief to taxpayers who failed to file returns.

Who is Eligible?

• Taxpayers with pending returns
• Businesses with late filing penalties

Under this scheme, reduced late fees are available if returns are filed within the given time.

According to My Finance Gyan, this is a golden opportunity for defaulting taxpayers to regularize compliance.

GST Notices – Types & How to Respond

Receiving a GST notice can create panic. But understanding its reason is important.

Common Types of GST Notices

• Notice for non-filing of returns
• Mismatch in ITC
• Short payment of tax
• Audit notice

How to Respond?

• Read the notice carefully
• Check reference number
• Reply within deadline
• Attach proper documents

Timely response avoids penalties.

GST on Gold – What You Need to Know

Before GST, gold was taxed under VAT and other levies.

Currently:

• 3% GST on gold value
• 5% GST on making charges

This increased transparency in the jewellery sector. Buyers must always check GST invoice while purchasing gold.

GST on Residential Property Rent

There was confusion regarding GST on residential rent.

GST applies when:

• Property is rented for commercial use
• Tenant is registered under GST

If rented purely for residential personal use, GST is generally not applicable.

Business tenants may be liable under Reverse Charge Mechanism (RCM).

GST on Salary – Applicability & Exemptions

One common question is: Does GST apply to salary?

The answer is No.

Salary paid by employer to employee is not considered supply under GST. Hence, it is not taxable.

However, if a consultant provides professional services, GST may apply.

GST Tax Exemption – Meaning & Eligibility

GST exemption means certain goods or services are not taxable.

Examples

• Essential food items
• Healthcare services
• Educational services

Eligibility depends on government notifications.

Understanding exemptions helps businesses price products correctly.

0% GST on Health and Life Insurance (2025 Update)

The government introduced 0% GST on health and life insurance premiums in 2025.

This reduces insurance costs and encourages financial security.

It is a major relief for middle-class families.

Filing GST & ITR for Traders

For traders, GST and Income Tax Return (ITR) filing must go hand in hand.

Proper bookkeeping ensures:

• Correct tax payment
• Smooth audit
• No penalty
• Easier loan approvals

Compliance improves financial credibility.

When Should You Cancel GST Registration?

Not every business needs to continue GST forever.

You can cancel registration if:

• Business closed
• Turnover below limit
• Shift to composition scheme

But cancellation must be done properly to avoid future notices.

Udyam Registration & GST for MSMEs

MSMEs form the backbone of India’s economy.

Udyam Registration helps businesses get:

• Government benefits
• Subsidies
• Loan advantages

GST registration combined with Udyam increases business credibility and funding opportunities.

Conclusion

GST has transformed India’s indirect tax system. From registration to returns, refunds to exemptions, and latest updates like GST 2.0 and Amnesty Scheme 2025, compliance is evolving rapidly.

Understanding GST rules is not optional anymore. It is essential for business survival.

At My Finance Gyan, we simplify complex tax laws into easy language so every entrepreneur can stay informed. Whether it is GST on gold, residential rent, salary applicability, refund process, or new registration guidelines, My Finance Gyan provides practical and updated guidance.

If you are a business owner, trader, or startup founder, follow My Finance Gyan regularly to stay ahead in taxation and compliance.

GST is not just a tax system. It is a compliance culture. And with the right knowledge from My Finance Gyan, you can manage it confidently and grow your business without fear.