GST Eligibility: Who Qualifies and What You Need to Know

When you run a business in India, GST, Goods and Services Tax, a unified indirect tax system replacing multiple state and central levies. Also known as Value Added Tax, it’s not just a tax—it’s a compliance requirement that shapes how you invoice, track sales, and file returns. If your annual turnover crosses ₹40 lakh (₹20 lakh for special category states), you’re legally required to register for GST. But eligibility isn’t just about numbers. It also depends on your business type, whether you sell online, or if you’re making inter-state supplies—even if your turnover is below the limit.

Some businesses must register no matter their size. Think of e-commerce sellers, input service distributors, or those supplying goods through online marketplaces like Amazon or Flipkart. If you’re a non-resident offering services in India, you need GST too. On the flip side, certain goods and services are exempt—like fresh milk, agricultural produce, or educational services. Missing these exemptions can mean paying tax you don’t owe. And if you’re registered, you can claim input tax credit on purchases, but only if your suppliers are also GST-compliant. It’s a chain: one weak link breaks the whole credit flow.

GST return filing, the process of submitting monthly or quarterly tax reports to the government portal. It’s not optional. Even if you had zero sales, you still need to file a nil return. Late filings bring penalties, and mismatched invoices can freeze your input credit. Meanwhile, GST refund, the process of getting back excess tax paid, often due to exports or inverted duty structures. is a lifeline for exporters and manufacturers who pay more tax on inputs than outputs. But getting it isn’t automatic—it needs accurate GSTR-1 and GSTR-3B filings, and matching supplier data.

There’s no one-size-fits-all answer to GST eligibility. It changes with your sales, location, and business model. A small artisan selling handloom online might need to register even if they earn ₹30 lakh a year. A local grocery shop with ₹35 lakh turnover might not need to if they only sell exempt items. That’s why understanding your specific case matters more than memorizing rules. The posts below break down real situations—from startups navigating registration to traders claiming refunds—so you don’t guess your way through compliance.