The Practical GST Guide for Indian Businesses

Do you need to register?

Registration is mandatory above ₹40 lakh turnover for goods and ₹20 lakh for services, but thresholds are not the only trigger. Inter-state supply, e-commerce selling and reverse-charge liability all force registration regardless of turnover.

• ₹40 L goods / ₹20 L services in most states
• Any inter-state outward supply of goods
• Selling through e-commerce operators
• Casual taxable persons and non-resident suppliers

Composition versus regular

Composition offers a lower rate and quarterly filing but blocks input credit and inter-state supply. It suits B2C businesses with low input costs. Any B2B seller whose buyers claim credit should stay regular — composition makes you a more expensive supplier.

The monthly calendar

GSTR-1 by the 11th, GSTR-3B by the 20th, and annual GSTR-9 by 31 December. QRMP filers submit quarterly with monthly tax payment. Late fees accrue daily and interest runs at 18% per annum on tax paid late.

• 11th — GSTR-1 outward supplies
• 20th — GSTR-3B summary and payment
• 13th — GSTR-1 quarterly under QRMP
• 31 December — GSTR-9 annual return

Recovering input credit you are losing

Most businesses leave credit on the table because purchase invoices are not reconciled against GSTR-2B. If your supplier has not filed, you cannot claim. Monthly reconciliation with supplier follow-up typically recovers between 2% and 6% of annual purchase value.

Three mistakes that generate notices

First, 3B and 1 not matching each other. Second, claiming credit not reflected in 2B. Third, e-way bill values diverging from invoice values. Each is avoidable with reconciliation before filing rather than after.