Do Retail Stores & Restaurants Need GST Registration in 2026?

The 40 Lakh Limit for Goods & 20 Lakh for Services/Restaurants

For most states in India, if your retail store deals exclusively in goods, you are exempt from GST registration until your annual turnover crosses ₹40 Lakhs. For restaurants and service providers, the turnover threshold is ₹20 Lakhs (₹10 Lakhs for special category states).

What if you cross the limit?

If your turnover exceeds the limit, you have two options:

1. Regular Scheme: You charge GST to your customers and claim Input Tax Credit (ITC) on your purchases.
2. Composition Scheme: Designed for small businesses and small restaurants. Retailers pay a flat 1% tax on turnover, and restaurants pay 5% without ITC.

Billing without GST

If you are under the threshold limit or using the composition scheme, you must issue a "Bill of Supply" rather than a "Tax Invoice". Vyop automatically handles this distinction. When setting up your profile, simply mark your business as unregistered, and Vyop generates legally compliant non-GST bills instantly via voice or barcode.