Does Your Shop in Rohini Need GST Registration?

Shop owners often ask us whether they must take a GST number. The honest answer is: not always. It depends on turnover, what you sell and to whom.

When it is compulsory

• Your yearly turnover from goods crosses the threshold, generally ₹40 lakh in Delhi (₹20 lakh if you mainly provide services)
• You sell goods to customers in other states
• You sell through an online marketplace that requires a GSTIN
• You fall in a notified category, such as certain agents

When voluntary registration helps

If your buyers are GST-registered businesses, they prefer suppliers who can give a tax invoice. Registration also lets you claim credit on your own purchases. For a shop selling only to walk-in customers, registering early mostly adds return-filing work.

Composition scheme for small retailers

Eligible small dealers can pay tax at a low flat rate on turnover and file fewer returns. The trade-off is that you cannot charge GST separately on the bill or claim input credit. It works well for kirana stores and eateries with local customers.

What goes wrong

• Crossing the limit mid-year and applying months later, which creates back tax
• Counting only taxable sales when exempt sales also count towards the limit
• Taking registration and then ignoring nil returns

Unsure where you stand? Bring last year's sales figures and we will give you a clear yes or no.

This article gives general information. Limits, rates and due dates change, so please confirm the current position for your case before acting.

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