GST in India
Registration, Thresholds and the Composition Scheme
Businesses above certain turnover must register, while small firms can choose a simpler composition scheme with lower compliance.
Small firms have lighter rules.
Registration
A business above the threshold, generally ₹40 lakh for goods and ₹20 lakh for services, must register and get a GSTIN.
Composition
Small traders can pay a fixed percentage of turnover and file simpler returns, but cannot claim input credit.
Voluntary registration
Firms below the limit can register to claim credit and supply larger buyers.
Interstate sellers
Selling across states or online generally requires registration.
A small shop
A shop with modest turnover opts for composition to avoid heavy paperwork.
Thinking small firms never need registration
Interstate and online sellers usually do.
Key takeaways
- Registration depends on turnover.
- Composition simplifies filing.
- Voluntary registration is possible.
- Interstate sales usually need it.
No recording for this one yet - EconReader can read it aloud for you.