GST for a small shop: what you need to register

Do you need GST registration?

For most shops selling goods, registration becomes compulsory when turnover crosses ₹40 lakh a year. For services it is ₹20 lakh. A few states have lower limits.

Some businesses must register whatever their turnover, for example those selling goods to other states or selling through e-commerce platforms that collect tax.

You can also register before you cross the limit, which many wholesalers and B2B buyers prefer.

How to register

1. On gst.gov.in, choose Services → Registration → New Registration.
2. Part A: enter your PAN, mobile and email, and verify the OTPs. You get a Temporary Reference Number (TRN).
3. Part B: log in with the TRN and fill in business details, the shop address, bank account and goods you sell.
4. Upload the documents and choose Aadhaar authentication.
5. Submit. You get an ARN to track the application. The GSTIN usually comes within a few working days if Aadhaar authentication succeeds.

Composition scheme for small shops

If your turnover is up to ₹1.5 crore, you can choose the composition scheme: you pay a small fixed rate on turnover and file less often, but you cannot charge GST on invoices or claim input tax credit.

Documents you need

• PAN of the owner or business
• Aadhaar of the owner
• Passport-size photo
• Proof of the shop’s address (electricity bill, or rent agreement with the owner’s NOC)
• Bank account proof (cancelled cheque or first page of the passbook)

Questions