Goods and Services Tax: Rules, Claims, and How It Affects Your Business in India

When you buy something in India, the Goods and Services Tax, a unified indirect tax replacing multiple state and central levies. Also known as GST, it's the single tax that now sits on most goods and services you use every day — from groceries to gadgets to consulting services. It’s not just a number on your bill. It’s a system that shapes how businesses operate, how they track money, and how they get paid back.

If you run a business, GST claims, the process of recovering tax paid on business purchases are your lifeline. You pay GST when you buy raw materials, equipment, or services. But you can claim that back — if you file correctly. Miss a deadline, mix up invoice numbers, or forget to match your supplier’s data, and your refund gets stuck. The input tax credit, the core mechanism that lets businesses offset taxes paid on purchases against taxes collected from customers isn’t a gift. It’s a rulebook. And the rules changed in 2024 — you now need to verify supplier filings before you can claim credit. One mismatch, and your claim drops.

And if you’re filing returns, GST return filing, the mandatory submission of sales, purchases, and tax liability data isn’t optional. GSTR-1, GSTR-3B, GSTR-9 — each form serves a different purpose. Filing late? You get penalties. Filing wrong? You risk audits. Many small businesses think they can skip it or use free tools that don’t sync with the GSTN portal. They end up paying more in fines than they saved.

What about refunds? GST refund rules, the conditions under which businesses get money back from the government are strict. Exporters, SEZ units, and businesses with excess input credit can apply. But the system doesn’t just hand over cash. You need accurate records, matching invoices, and no pending compliance issues. The average refund takes 60 to 90 days — if you do everything right.

This isn’t about tax evasion. It’s about playing by the rules so your business stays healthy. The posts below cover exactly what you need: how to file a GST return step by step, what you can and can’t claim as input credit, common filing mistakes that trigger notices, and how to chase down a delayed refund without losing sleep. No theory. No jargon. Just what works for Indian businesses right now.