{"id":9514,"date":"2021-09-07T17:49:59","date_gmt":"2021-09-07T12:19:59","guid":{"rendered":"https:\/\/payu.in\/blog\/?p=9514"},"modified":"2025-10-22T10:30:53","modified_gmt":"2025-10-22T05:00:53","slug":"register-small-business-startup-under-gst","status":"publish","type":"post","link":"https:\/\/payu.in\/blog\/register-small-business-startup-under-gst\/","title":{"rendered":"GST Registration for Startups and Small Businesses in India | A Quick Guide"},"content":{"rendered":"\n

Do you want to register your startup or small business under GST (Goods & Service Tax) but don’t know where to start? Don\u2019t worry! Read on to know more about GST, its registration process, and tax exemptions for startups and small and medium businesses (SMBs).<\/p>\n\n\n\n

Table of contents<\/strong><\/p>\n\n\n\n

1.<\/td>What is goods and services tax (GST)?<\/a><\/td><\/tr>
2.<\/td>Types of GST<\/a><\/td><\/tr>
3.<\/td>Advantages of GST for startups and small businesses<\/a><\/td><\/tr>
4.<\/td>Exemptions for startups and small and medium businesses under GST<\/a><\/td><\/tr>
5.<\/td>How to register a startup or small business under GST<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

What is goods and services tax (GST)?<\/strong><\/h2>\n\n\n\n

It is a tax reform that came into existence on 29th March 2017 by an act of parliament and has replaced many indirect taxes such as VAT, excise, service tax, etc.<\/p>\n\n\n\n

A comprehensive destination-based tax, GST is levied on the supply of goods and services at every point of sale. For example, you are a wholesale merchant and sell goods to Mr X, a retailer, who further sells it to Mr Y, the consumer. At first, the tax is levied on the purchase made by Mr X from you. Then, the tax is further levied on the purchase made by Mr Y from Mr X.<\/p>\n\n\n\n

A unique number called GST registration number is allotted to every business registered under GST.<\/p>\n\n\n\n

Types of GST<\/strong><\/h2>\n\n\n\n

In India, there is a dual GST system in which the central and state governments levy taxes simultaneously with a common tax slab. However, GST is mainly categorized in three simpler terms:<\/p>\n\n\n\n

State Goods and Services Tax (SGST<\/strong>) \u2013 taxes levied by the state government or union territory (UT) on goods and services manufactured or sold within state or UT boundaries.<\/p>\n\n\n\n

Central Goods and Services Tax (CGST<\/strong>) \u2013 taxes levied by the central government on any intra-state transactions for goods or services.<\/p>\n\n\n\n

Integrated Goods and Services Tax (IGST<\/strong>) \u2013 taxes levied by the central government when a transaction of goods or services takes place within two different states. The state and central government share the tax levied equally.<\/p>\n\n\n\n

Advantages of GST registration for startups and small businesses<\/strong><\/h2>\n\n\n\n

GST for small business and startup provides these advantages:<\/p>\n\n\n\n