GST for small businesses
SMEs and self-employed people working out whether to register, what to charge, and how to file GST.
GST applies once your turnover crosses the registration threshold, Rs 20 lakh for services (Rs 10 lakh in special-category states) or Rs 40 lakh for goods. Since GST Reform 2.0 took effect on 22 September 2025, the structure is a simplified set of slabs (0, 5, 18 and 40 per cent), and several common services moved to 5% with no input credit. This hub covers when you must register, what rate applies, how input-tax credit works, whether the composition scheme suits you, and the returns, e-invoicing and e-way-bill machinery. Each trade page on the site carries the specific GST treatment for that work.
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Guidance, not advice. We explain the rules, we don't assess your situation. Always seek financial or tax advice from your accountant, or contact Income Tax Department. Read our editorial scope →
Guides in this hub
- GST registration thresholds →
When you must register, and voluntary registration
- The GST slabs after Reform 2.0 →
The 0/5/18/40 structure from 22 September 2025
- Input-tax credit →
When you can recover GST on purchases
- The composition scheme →
Lower rate, simpler filing, no input credit
- Returns, e-invoicing and e-way bills →
Filing cadence, IRN and goods movement
5% no-credit vs 18% with credit
Reform 2.0 moved several consumer services (salon, fitness, standalone restaurants and more) to 5% with no input-tax credit, down from 18% with credit. Lower output GST, but you cannot recover GST on rent, equipment or supplies. For service-heavy, low-input businesses the 5% rate is usually favourable; for input-heavy businesses the lost credit matters.
Register on time
Crossing the threshold without registering is a common and avoidable problem. Track your rolling turnover through the year, and remember that online sellers supplying through a marketplace usually must register regardless of the threshold. Voluntary registration can also be worth it if you export services and want input-credit refunds.
Calculators for this topic
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