GST Guide for Small Businesses — Rates, Filing & Input Credit

• Mandatory registration if:
• Annual turnover exceeds ₹40 Lakh (goods) or ₹20 Lakh (services)
• You sell goods/services inter-state (any turnover)
• You sell on e-commerce platforms (Amazon, Flipkart)
• You're a casual taxable person

• Voluntary registration is beneficial if:
• Your customers are GST-registered businesses (they need your GSTIN for input credit)
• You want to claim input tax credit on your purchases
• It adds credibility and professionalism to your business

Most common rate for services: 18% (IT, consulting, rent, professional services) Most common rate for goods: 12-18%

Use our GST Calculator to quickly compute GST on any amount at any rate.

ITC is the most powerful GST benefit for businesses. You can claim credit for GST paid on business purchases against GST collected on sales.

Example: You charge 18% GST on ₹1,00,000 service = ₹18,000 GST collected. You paid 18% GST on ₹40,000 office rent = ₹7,200 GST paid. Net GST payable = ₹18,000 - ₹7,200 = ₹10,800.

ITC is available on: Goods and services used for business, capital goods, input services ITC is NOT available on: Personal use, food & beverages (unless you're in food business), health insurance for non-employees

For small businesses with turnover up to ₹1.5 Crore (goods) or ₹50 Lakh (services):

• Flat rate: 1% (manufacturers), 5% (restaurants), 6% (services)
• Quarterly filing instead of monthly
• No ITC can be claimed
• Cannot sell inter-state

Best for: Small manufacturers, restaurants, and local service providers who sell B2C (to consumers, not businesses).

• Regular taxpayers:
• GSTR-1 (outward supplies): 11th of next month
• GSTR-3B (summary return): 20th of next month
• GSTR-9 (annual return): December 31st

• Composition taxpayers:
• CMP-08: Quarterly (18th of month after quarter)
• GSTR-4 (annual): April 30th

Late filing penalty: ₹50/day (₹20/day for NIL return), max ₹5,000. Interest at 18% on tax due.