GST compliance
Two decisions come before you ever create a bill: do you need to register for GST at all, and if you do, should you take the simpler composition scheme or register as a regular taxpayer? Here's what each actually means for a small shop.
This is general information, not tax advice. Thresholds vary by state and change over time — confirm your specific situation on the official GST portal or with your accountant.
For most states, businesses supplying goods generally need GST registration once annual turnover crosses ₹40 lakh (₹20 lakh for services). Some special-category states have lower thresholds. Turnover is calculated across all your business locations under the same PAN, not per shop.
Even under the threshold, some shops register anyway — to claim input tax credit on purchases, or because larger suppliers and buyers prefer dealing with GST-registered businesses.
The composition scheme lets qualifying small businesses pay GST at a fixed, lower rate on turnover, with simpler quarterly filing instead of monthly returns. It's generally available for goods-supplying businesses with turnover up to ₹1.5 crore, with lower limits for special-category states and for service providers.
Composition dealers can't claim input tax credit on their purchases, generally can't sell across state lines, and can't show GST separately on the customer's bill. It suits a shop with simple, local, retail-only sales better than a business that buys and sells inter-state or serves GST-registered business customers.
Whichever way you register, StockMitra creates GST-ready bills that match your registration type, and keeps sales organised for whichever return cycle applies to you. The registration decision itself is best made with an accountant, based on your numbers.
For most states, businesses supplying goods generally need to register once annual turnover crosses ₹40 lakh (₹20 lakh for services). Some special-category states have lower thresholds. You can also register voluntarily below the threshold if it helps your business — for example, to claim input tax credit or sell to GST-registered buyers.
The composition scheme lets small businesses pay GST at a fixed, lower rate on turnover instead of the regular rate structure, with simpler quarterly filing instead of monthly returns. It's generally available for businesses supplying goods with turnover up to ₹1.5 crore (lower limits apply for special-category states and for service providers).
Composition dealers can't claim input tax credit on their purchases and generally can't sell across state lines, and they can't show GST separately on the bill to customers. It suits shops with simple, local, retail-only sales; it suits larger or inter-state sellers less well.
No — that decision depends on your specific turnover, margins and customer base, and is best made with an accountant. StockMitra supports GST billing either way once you've registered and made that choice.
