Why GST registration is exempted for those who’s annual turnover is less than 40 Lakh ?

mack (Thinking-to-start-business)   (154 Points)

29 November 2022  

I saw that those who sell Products with an annual turnover (sales) exceeding 40 lacs or those who provide services with an annual turnover exceeding 20 lacs (For Normal Category States) would require registration for GST. But below this figure, a person doesn’t require GSTIN.

So how do people having turnover below this threshold pay GST to the government? if they are selling a product or service by what name they can add the tax to the product price ?

And if I am starting a Sole Proprietorship for an Export business having 0 turnovers but for export GSTIN is mandatory then I have to pay GST even if my turnover is 0 ? (I think I have to file 0 GST for that period)