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:
CGST (Central GST) – Collected by the Central Government.
SGST (State GST) – Collected by State Government.
IGST (Integrated GST) – Applied on interstate transactions.
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
File refund application in Form RFD-01
Submit supporting documents
Officer verification
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.