Registration for small retailers under gst
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2017
I am a computer shop owner who deals in laptops and other accessories ( both new and old) . My annual turnover is less than 20 lakh. I was not having TIN. Before the introduction of GST, the supplier was delivering laptops and other items without any issues but now the supplier of laptops refuse to give me the goods as I do not have TIN. Supplier is a registered supplier. Will it be necessary for me to register my shop under GST even though my turnover is less than 20 lakh.
15 July 2017
You are not required to get registration as your turnover is within threshold, but you can take voluntary registration if you want. you can also opt Composition Scheme.
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15 July 2017
Since you are doing business it is advisable to register for GST, you will have to collect from customer and pay to government, you will only have to bear the nominal compliance cost.
If you don't register then you will have to pay GST from your pocket & you can't collect it from your pocket.
If you don't register then you will have to pay GST from your pocket & you can't collect it from your pocket.
15 July 2017
* collect it from your customers & you will be at loss.
Therefore you will to register for GST no.
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Querist : Anonymous
Querist :
Anonymous
(Querist)
15 July 2017
Thanks Rahul for answering my query. I have one doubt. Supposing if I have opted for composition scheme and I purchase laptops worth Rs. 1. 5 lakh from dealer who is a registered taxpayer. Now the dealer charges me 18% GST (9% CGST and 9% SGST) . Under composition scheme, won't you think I will be at loss as I can't issue taxable invoice to the buyer. So, I will not be able to claim input tax credit. Please clarify.
20 July 2025
Great question! Here’s the detailed explanation about GST registration and the Composition Scheme for small retailers like you:
1. Do you need GST registration if your turnover is below Rs. 20 lakh?
No, mandatory registration is not required if your aggregate turnover is below Rs. 20 lakh (Rs. 10 lakh for some special states).
However, your suppliers may insist on your GST registration for input tax credit reasons or compliance.
You can opt for voluntary registration anytime if you want to grow your business or maintain smooth supply chain relations.
2. What happens if you opt for Composition Scheme?
Composition scheme is available for businesses with turnover up to Rs. 1.5 crore.
You pay tax at a fixed low rate on turnover, but cannot claim Input Tax Credit (ITC) on your purchases.
You also cannot issue a regular tax invoice; instead, you issue a bill of supply without GST details.
3. Your concern about input tax credit and loss:
If you purchase laptops from a registered dealer who charges you 18% GST, you cannot claim ITC under Composition Scheme.
This means the GST paid on purchase is part of your cost, and you cannot pass this input credit benefit to your buyers.
So yes, you will bear this GST cost on inputs which can increase your effective cost.
If you are selling laptops, your final product price may be higher than competitors who can claim ITC.
4. What can you do?
If you want to avoid paying GST on inputs without ITC, you can opt for regular GST registration (not composition).
Under regular GST, you charge GST on sales and claim ITC on purchases.
This can improve your pricing competitiveness.
But it comes with higher compliance requirements (monthly returns, invoicing, etc.).
Summary Table:
Aspect Composition Scheme Regular GST Registration
Turnover Limit Up to Rs. 1.5 crore No turnover limit
GST Rate Low fixed % (e.g. 1%-6% depending on type) Normal GST rates (e.g. 18%)
Can Claim ITC? No Yes
Invoice Type Bill of Supply (no GST details) Tax Invoice (with GST details)
Compliance Level Low Moderate to High
Impact on Buying from Registered Dealers GST charged on purchase not refundable Input tax credit can be claimed
So for your laptop business:
If you want simpler compliance and low tax liability but accept that GST on inputs will be your cost → Composition scheme may be good.
If you want to claim ITC and pass benefits to customers → regular GST registration is better, even if turnover is below threshold (voluntary registration).
1. Do you need GST registration if your turnover is below Rs. 20 lakh?
No, mandatory registration is not required if your aggregate turnover is below Rs. 20 lakh (Rs. 10 lakh for some special states).
However, your suppliers may insist on your GST registration for input tax credit reasons or compliance.
You can opt for voluntary registration anytime if you want to grow your business or maintain smooth supply chain relations.
2. What happens if you opt for Composition Scheme?
Composition scheme is available for businesses with turnover up to Rs. 1.5 crore.
You pay tax at a fixed low rate on turnover, but cannot claim Input Tax Credit (ITC) on your purchases.
You also cannot issue a regular tax invoice; instead, you issue a bill of supply without GST details.
3. Your concern about input tax credit and loss:
If you purchase laptops from a registered dealer who charges you 18% GST, you cannot claim ITC under Composition Scheme.
This means the GST paid on purchase is part of your cost, and you cannot pass this input credit benefit to your buyers.
So yes, you will bear this GST cost on inputs which can increase your effective cost.
If you are selling laptops, your final product price may be higher than competitors who can claim ITC.
4. What can you do?
If you want to avoid paying GST on inputs without ITC, you can opt for regular GST registration (not composition).
Under regular GST, you charge GST on sales and claim ITC on purchases.
This can improve your pricing competitiveness.
But it comes with higher compliance requirements (monthly returns, invoicing, etc.).
Summary Table:
Aspect Composition Scheme Regular GST Registration
Turnover Limit Up to Rs. 1.5 crore No turnover limit
GST Rate Low fixed % (e.g. 1%-6% depending on type) Normal GST rates (e.g. 18%)
Can Claim ITC? No Yes
Invoice Type Bill of Supply (no GST details) Tax Invoice (with GST details)
Compliance Level Low Moderate to High
Impact on Buying from Registered Dealers GST charged on purchase not refundable Input tax credit can be claimed
So for your laptop business:
If you want simpler compliance and low tax liability but accept that GST on inputs will be your cost → Composition scheme may be good.
If you want to claim ITC and pass benefits to customers → regular GST registration is better, even if turnover is below threshold (voluntary registration).
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