GST Registration For Small, Micro, and Medium Enterprises (SMMEs) Businesses In India

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Micro, Small, and medium enterprises (MSME) constitute one of the most vital sectors within the Indian economy, contributing significantly to employment creation, financial growth, and development.

India is tending to come forward as one of the leading economies by 2026, with a GDP of $5 trillion. The Indian government is always reluctantly working to ensure the improvement of the MSME sector, which in fact will contribute at least $2 trillion.

In addition to around 47% of total industrial output, nearly 43% of total exports, add a significant contribution to our GDP, in which Micro, Small, and Medium Enterprises (MSME) are also the backbone of India’s socioeconomic development.

A rapid adoption of digital payments over cash has occurred in Indian MSMEs with 75% of payments conducted electronically versus 25% in cash. This increment is showing the growth curve of the business sector with a high potential for further expansion.

How to Register GST For Small Business


Even if it is a small business or a new startup, you should be familiar with all the laws and regulations you have to comply with, as well as the GST taxes you might have to pay.

The integrated system of taxation called GST, or Goods and Services Tax, was introduced in our country in order to simplify the taxation system for citizens and businesses of all sizes.

There are many benefits associated with GST for small businesses.

What are the requirements for GST registration?

The manufacturing sector and small to medium companies with a turnover exceeding rupee 40lakhs need GSTINs, whereas businesses with a turnover of rupee 20 lakhs or more need GSTINs for the service and a few other sectors.

How to register for GST in India:

Document checklist for GST registration in India –

  • The company’s PAN CARD.
  • Identification documents (passports, Adhaar cards, or driver’s licenses).
  • Companies in the LLP, OPC, or private limited company class must have a certificate of association.
  • Detailed information about your bank account (bank statements, canceled checks, passbook, etc.)
  • Partnership deeds are required for partnership firms.
  • The passport-size photograph of the owner
  • The Pan Card of the owner/ Company

Procedures to follow by Small Businesses to Register for GST

Once the above-listed documents are in hand, you can register your small business through the online provisions by visiting https://www.gst.gov.in/


Ahead of this, you have to create an account on this GST portal.

Following that, provide your personal information, your business details, your goods, your HSN codes or SAC codes, and your banking details.

If everything is submitted correctly, you will be intimated with a GST number.

What are the benefits of GST for a small business?

  • Under the composition scheme, the GST is to be paid only for the taxable goods
  • The authorities have the right to penalize any individual who deliberately shows incorrect data to register under this scheme.
  • Under the composition scheme, the taxpayers are not required to raise any invoice. Instead, they only need to show their supply bill to the authorities.
  • This Scheme is beneficial for the local transfer of goods and services within a particular state.
  • If a taxpaying individual wants to apply for this particular scheme, he needs to do it voluntarily. But later after the registration, in case the taxpayer’s yearly income goes beyond the threshold of Rs 1.5 crore or Rs 75 lacs, he will be automatically transferred to the regular scheme as he will no longer be eligible for the composition one.
Find a few reasons to know why it is beneficial to register for GST:
  • The taxpayer gets the legal right to collect tax from his customers and also to carry forward the credit of the paid taxes to his customers or suppliers.
  • It is a uniform tax levied all across the country on goods and services, which makes it much more convenient to understand the entire indirect tax structure.
  • It is one of the legal proofs which acknowledge an individual as a tax provider of goods and services.
  • It supports the individual to be eligible for all the other benefits and compensation that fall under the law of GST.


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