Mandatory GST: What Businesses in India Must Know

When your business hits ₹20 lakh in annual turnover, mandatory GST, a tax system that replaces multiple indirect taxes with one unified levy across India. Also known as Goods and Services Tax, it’s not optional—you must register, file returns, and keep records or risk penalties. This isn’t just paperwork. It’s the difference between staying open and getting shut down by tax authorities.

Not all businesses need to register right away. If you’re under the threshold, you can skip it—but many choose to register anyway to claim input tax credit, the ability to offset taxes paid on purchases against taxes collected from customers. That’s how smart businesses cut costs. But if you claim it wrong, you lose money. Common errors? Mixing exempt and taxable goods, missing invoice details, or filing late. The system doesn’t forgive mistakes.

And if you’ve overpaid? You can file for a GST refund, a return of excess tax paid, often due to exports or inverted tax rates. But getting it isn’t automatic. You need clean records, accurate GSTR-1 and GSTR-3B filings, and no pending notices. Many wait months—or never get it—because they didn’t follow the rules.

Some think GST is only for big companies. It’s not. Even a small shop selling goods online, a freelance consultant, or a home-based manufacturer can be pulled into it. If you sell across state lines, you’re under the GST radar. If you use platforms like Amazon or Flipkart, they’ll ask for your GST number before listing your products. No number? No sales.

The rules change often. Rates shift. Forms get updated. New categories are added. But the core stays the same: if you’re making money in India and crossing the limit, you’re legally required to be part of this system. Ignoring it won’t make it go away—it’ll just make it more expensive.

Below, you’ll find real guides from Indian businesses that have been through this. How to file without a CA. How to track input credit. How to avoid audit traps. What to do if your refund is stuck. These aren’t theory pages. They’re step-by-step fixes from people who’ve been there—and survived.