Separate Nature of Taxes

• Income Tax and Goods and Services Tax (GST) are two distinct types of taxes.
  
• Income tax is levied on income earned by individuals or businesses.
  
• GST is levied on the supply of goods and services, not on income.
  
• Paying income tax does not exempt you from paying GST.
  
• A taxpayer may be liable to pay both taxes, depending on their activities.
  

When GST Is Applicable

• GST applies if your aggregate turnover exceeds ₹20 lakhs (₹10 lakhs in special category states) for services.
  
• For goods, the threshold is ₹40 lakhs in most states.
  
• Freelancers, consultants, traders, and businesses who cross this threshold must register for GST.
  
• GST must be collected from customers and paid to the government.
  
• GST registration is mandatory once you cross the specified turnover limit.
  

Who Must Pay GST

• Service providers, including freelancers and professionals, offering taxable services.
  
• Traders and businesses involved in buying and selling of goods.
  
• E-commerce sellers and suppliers working through platforms.
  
• Those voluntarily opting for registration even below threshold.
  
• Individuals or firms making interstate supply or working with registered businesses.
  

No Overlap in Liability

• Paying income tax does not cover or substitute for GST liability.
  
• Both taxes apply independently based on different criteria.
  
• One is based on income earned, the other on transactions made.
  
• Income tax is annual and direct; GST is transactional and indirect.
  
• Compliance with both is essential to avoid legal penalties.
  

Filing Requirements

• Income tax is filed once a year based on total income.
  
• GST returns must be filed monthly or quarterly, depending on scheme.
  
• Separate portals and procedures exist for each tax.
  
• Registration, filing, and payment are handled independently.
  
• Taxpayers must maintain accurate records for both systems.