Do small business owners need a GST number?

Do small business owners need a GST Id number, to run the business in India? As per the GST Act, if your financial turnover is above Rs 40 lakhs, then you need to register under GST. For northeastern states and hill states, the limit is ₨ 10 lakhs.

A GST or The Goods and Service Tax is a single or indirect tax applied by the Government of India. If you are running any online business or providing service like the hotel, restaurant, shopping, factories, etc., the Government charges GST.

Under the GST regime, every business holder gets Goods and Services Tax Identification Number (GSTIN) or a GST Number. Every registered person receives a unique identification number. The Tax identification number help income tax authorities to maintain records of GST dues and payments.

Note:- No organization or business can carry on business without registering under GST guidelines.

No organization and business can carry on business without registering under GST guidelines. Incorrect GST Returns entries, results in rejection of the input tax credit, in addition with penalties.

Who is eligible for the GST number?

Before applying for registration process for GST, one needs to meet the following criteria:-

  • For the manufacturing sector, the financial turnover is Rs 40 lakhs or more.
  • For the service sector, the financial turnover is Rs 20 lakhs or more.
  • In Northeastern and hill states, Rs 10 lakhs or more.

Other requirements

A small business owner is eligible for GSTIN under these guidelines:-

  1. You are located in one state but selling goods or services in another state.
  2. If you are using e-commerce platforms like Flipkart or Amazon to sell your products.
  3. Your business involves the export and import of things.
  4. If you are generating tax invoices for your customers.
  5. For the reverse charge mechanism, you are eligible for tax.
  6. In case you work on behalf of the registered taxpayer.
  7. Working as an Input service provider (ISD).
  8. If your company involves as a Casual Taxable Payer in any event outside your residing state.
  9. Operating an e-commerce site or have an aggregator business ( one who supplies service under his brand name).
  10. You are providing overseas OIDAR (Online Information Database Access and Retrieval) service to India.

Benefits of registering under GST

As a small business owner, you can find many advantages of GST registration. The benefits are easy to reap in the long run.

  1. The sales tax paid to the Government can come down. You only need to pay for the added value done by your business.
  2. The GSTIN is basically a symbol of validity. It helps to give you identity for your clients, e-commerce platforms, government tenders, banks and financial institutions, MNCs, and more.
  3. As per GST council guidelines, only one return to be filed under GST. Hence there is fewer compliance you need to follow to claim services tax GST.
  4. GST has explicit provisions on the inter-state movement of goods for e-commerce brands.
  5. Composition Scheme, a simple and easy scheme for small taxpayers. The scheme comes under GST for taxpayers. It reduces tedious GST formalities and pays GST at a fixed rate of turnover. It is ideal for any taxpayer whose turnover exceeds is less than a crore.

What are the consequences in case your business evades GST laws?

If your business comes under recommended guidelines of Goods and Services Tax, then applying for GST registration is essential. If you don’t follow the prescribed rules and regulations, then your business is liable to pay fine.

In some cases, you might lose your business. The reason behind it is, that various vendors, suppliers, and customers with whom you are working have to register under GST. Hence, if you are not paying taxes, then others who are working with you, will pay additional charges on your behalf. This type of work management doesn’t last for a long time.

Therefore if you are a self-employed person or have a startup business owner GST registration is a must. Even though if your annual income is less than Rs 20 lakh, it’s better to get yourself registered.

Note:- Through GST, the Government of India rates your business. The buyers and sellers of your business are well informed about the rankings.

Under Compliance Rating Score (CRS) in GST rules, the Government ranks your business as per your GST tax-paying habits. Depending on the ratings, your business can suffer badly.

How to register your small business with GST?

Registration for GST is a straightforward and easy process. With the GST portal, you can easily apply for GST registration. Several firms provide professional services for online registering your business with GST.

Imprezz solutions offer a wide range of services compliant with GST. We have multiple features that create a secure work environment for your business. From GST invoices or filing the returns, we offer assistance at every step.

Essential documents required for GST registration

To register for GST, the following documents are required:

  • Company PAN Card
  • Photographs (passport size)
  • Identity proofs like Aadhar Card/Passport/Driving Licence
  • Proof of address for your offices
  • Bank details via a statement/cancelled cheque or passbook
  • Certificate of association for Private Ltd Company or LLP/ OPC
  • Partnership deed for partnership firms

How to file GST returns?

In India, for every business, there are a total of 37 returns to be filed every year. It includes three returns per month and one annual return.

Note:- It is only applicable if your business is covered only in one state.

But if your business is operating in multiple states, then the total number of returns filed is more. Nowadays, online and digital format is accessible to finish all the work. Nowadays firms no longer entertain paper ledger books and account books.

Imprezz software offers an easy and quick solution for its clients. Our GST Export tool assists you in exporting a GST income file, which saves a lot of time. It helps to file your GST returns effectively and on time without any delays.

How do we help?

In India, as a small business owner, it is essential to be GST compliant. At Imprezz we offer a wide of accounting software which is simple to understand and helpful to claim GST. Our company tools are highly advanced to create GST compliant invoices, customized quotations, record expenses, track inventory.

For GST tax returns, you can access income and expenses through an easy export of file for your GST returns filling.


Lastly, with GST registration, you can do business functions legally. It is useful to establish your brand as a trustworthy, authentic one in the marketplace. With the simplified processes at the GST portal, it has become easy to obtain GSTIN. Applying for registration to filing returns through a few clicks, the task gets completed easily.

GST registration is the first step to manage your company taxes efficiently while maintaining a clean record. Imprezz assists all its customers in a convenient, transparent, and hassle-free procedures.

Get all and more features through Imprezz, register here for a free 14 days trials.

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