GST registration for small businesses in Bihar: limits, composition scheme and first steps
Do you need GST registration? For shops selling goods in Bihar the limit is ₹40 lakh a year; for services it is ₹20 lakh. Here is what that means, and when the composition scheme helps.
Bihar Directory Team · · 2 min read
GST is the first compliance question most growing shops in Bihar face. This guide explains the limits in plain words. Tax rules have exceptions, so confirm your own case with a chartered accountant or tax practitioner.
When registration becomes compulsory
- Selling goods in Bihar: register when your aggregate turnover in a financial year crosses ₹40 lakh.
- Providing services: register when turnover crosses ₹20 lakh.
- Some businesses must register whatever their turnover, for example those making inter-state sales of goods, and many sellers on e-commerce platforms. Check the rules for your case.
"Aggregate turnover" means the total value of all your sales across India under the same PAN, including exempt sales.
Voluntary registration
Even below the limit, you can register voluntarily. It helps if your buyers are businesses that want input tax credit, if you want to sell on marketplaces, or if you are close to the limit.
The composition scheme
Small businesses can choose the composition scheme to pay tax at a low fixed rate on turnover and file fewer returns:
- Available for turnover up to ₹1.5 crore (up to ₹50 lakh for service providers)
- Low rates, for example 1% for traders and manufacturers and 5% for restaurants
- You issue a bill of supply, cannot charge GST separately to customers, and cannot claim input tax credit
- You generally cannot sell goods to other states
It suits shops that sell mostly to final consumers within Bihar.
Documents usually needed
- PAN and Aadhaar of the proprietor
- Photograph
- Proof of business address (electricity bill, rent agreement or ownership document)
- Bank account details
- For firms and companies, the constitution documents
Registration is done on the official portal gst.gov.in; there is no government fee.
After registration
- Display your GSTIN on your board and bills.
- Issue proper invoices.
- File returns on time — late fees and interest add up quickly.
- Keep purchase bills organised; they are your input credit.
Related guides
This is general information, not tax advice. Confirm your situation with a qualified professional.
Frequently asked questions
What is the GST registration limit for shops in Bihar?
For businesses selling goods in Bihar, registration is compulsory when aggregate turnover crosses ₹40 lakh in a financial year. For services the limit is ₹20 lakh. Some businesses must register regardless of turnover.
Who can opt for the GST composition scheme?
Businesses with turnover up to ₹1.5 crore (₹50 lakh for most service providers) that meet the conditions, such as not selling goods outside the state.
Is there a fee for GST registration?
No government fee is charged for GST registration on gst.gov.in. Professionals may charge for helping you file.
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