Starting a Small Business in India: GST, Pricing and Profit

GST registration becomes mandatory once your yearly turnover crosses the threshold for your type of supply, commonly ₹40 lakh for goods and ₹20 lakh for services in most states, with lower limits in some special-category states. Selling across state lines or through certain e-commerce platforms can require registration regardless of turnover. Confirm the current limits on the official GST portal.

Since 22 September 2025 most goods and services fall under 5% or 18%, with 40% for a short list of luxury and sin goods. Read what is GST and CGST vs SGST so you know which tax heads to show on an invoice.

Margin and markup are not the same. If a product costs ₹600 and sells for ₹1,000, the markup is 66.7% on cost but the margin is 40% of the selling price. Mixing them up is one of the most common reasons new sellers underprice. Decide your target margin first, then work backwards to the price, and add GST on top only after.

Remember to include everything in cost: materials, packaging, shipping, payment-gateway fees, returns and your own time. When you run a discount, check what it does to margin before announcing it. A 20% discount on a 30% margin product leaves you with very little.

A WhatsApp click-to-chat link lets customers message you with a pre-filled enquiry, and a UPI QR code on your counter or invoice makes payment quicker. Both take a minute to create and cost nothing. Add them to your Instagram bio, visiting cards and invoices.

If you also run a website, follow the launching a website checklist so search engines can find it, and use the social tools to draft captions and hashtags for your posts.