1. Business Profile & Location
Section 22/24 CGST Act
Threshold standard
Norm: 20L / 40L
₹25,00,000
₹0
₹20L
₹40L
₹1 Crore
2. Mandatory Triggers (Sec 24)
Overrides Turnover
Inter-State Taxable Supply
Supplying goods/services outside your home state. Mandatory registration regardless of turnover.
E-Commerce Operator / Seller
Selling via Amazon, Flipkart, or operating digital marketplaces liable for TCS.
Voluntary GST Registration
Opt-in even if turnover is below limits to unlock B2B input tax credits.
Mandatory GSTIN Required
Sec 24 / Sec 22 CGST
Registration is Mandatory
Inter-state taxable supply / Turnover exceeds service threshold (Rs 20L)
Financial Mechanics (18% Standard GST)
Revenue Impact Analysis
Estimated GST Collected
₹4,50,000
Charged at 18% on ₹25,00,000
Net Burden on Startup
₹0 (Tax collected from customers and remitted)
Pure pass-through liability to treasury
Why GST is NOT an operational expense on revenue:
1. Customer Invoicing
Invoice: ₹100 + 18% GST = ₹118 collected
→
2. Input Tax Offset
Deduct GST paid on AWS, rent, and laptops
→
3. Net Remittance
Remit balance to GST portal. Startup cost = ₹0
Input Tax Credit (ITC) Status:
Eligible for credit claim against operational expenses.
When registered, GST paid on SaaS tools, laptops, office rent, and vendor invoices is set off rupee-for-rupee against collected tax.
Actionable Startup Checklist
5 Key Steps
| Phase | Required Action | Relevance |
|---|