GST Invoicing Rules for Small Retailers: Formats, HSN Codes & Exemption Limits (2026 Guide)

## GST Registration Thresholds for Retail Stores in India

Under current Indian GST regulations, small businesses selling goods enjoy a higher exemption threshold compared to service providers:

• **Standard Threshold for Goods:** ₹40 Lakh annual turnover (for regular states).
• **Special Category States:** ₹20 Lakh (e.g. Uttarakhand, Himachal Pradesh, North-Eastern states).
• **Composition Scheme Limit:** Up to ₹1.5 Crore annual turnover. Composition dealers pay a flat 1% GST on turnover and cannot charge GST on their customer invoices.

If your annual turnover is below the threshold and you do not engage in inter-state e-commerce supply, GST registration is optional. However, once registered, strict invoicing rules apply.

---

Tax Invoice vs. Bill of Supply

• **Tax Invoice (Regular GST Dealer):** Issued when selling taxable goods to consumers (B2C) or other businesses (B2B). Must clearly display CGST, SGST, or IGST rate breakdown.
• **Bill of Supply:** Issued by dealers enrolled in the **Composition Scheme** or retailers selling 100% exempt/nil-rated items (such as unbranded grains, fresh vegetables, milk). It must state: *"Composition taxable person, not eligible to collect tax on supplies"*.

---

Mandatory Fields on a Legal GST Tax Invoice

• Supplier Name, Trade Name, Registered Address, and GSTIN.
• Consecutive Serial Invoice Number (unique for each financial year, up to 16 characters).
• Date of Invoice Issue.
• Recipient Name and Address (for B2B: Recipient GSTIN and State Code; for B2C orders over ₹50,000: Name & Address mandatory).
• Description of Goods and HSN / SAC Code.
• Quantity, Unit of Measurement (e.g., PCS, KG, LTR).
• Total Value and Taxable Value after discounts.
• Tax Rate and Split Amount (CGST + SGST for intra-state, IGST for inter-state).
• Place of Supply along with State Name.
• Digital Signature or Authorized Signatory note.

With **ShelfOne**, all these statutory fields are pre-configured automatically. Invoices generated through ShelfOne conform 100% with CBIC guidelines.