Retail & Trading
Trading businesses live on thin margins and high volumes, so small gaps in GST or stock records add up quickly. The work is mostly about keeping sales, purchases, stock and bank deposits telling the same story every month.
What we help with
- GST registration, choice between the regular and composition schemes, and monthly or quarterly returns
- Purchase reconciliation with GSTR-2B so input tax credit is not lost
- Bookkeeping, stock statements and year-end accounts
- Income tax returns, including the presumptive taxation option where it suits
Points to watch
- 1Cash sales and bank deposits should reconcile with reported turnover; mismatches are a common trigger for enquiries.
- 2Input tax credit depends on suppliers filing their returns on time, so check GSTR-2B before claiming.
- 3Moving goods may need an e-way bill depending on value and distance.
- 4Once turnover crosses the tax audit limit, accounts must be audited before the return is filed.
General points, not advice for your case. Limits and dates change; we confirm what applies to you.
Registering under GST
Whether a shop or trading business must register depends mainly on its aggregate turnover, and the limit differs for goods and services. Some businesses must register whatever their turnover, for example those selling through e-commerce platforms or making certain inter-state sales. Registering when it is not needed adds monthly filings; not registering when it is needed brings tax, interest and penalties, so it is worth checking first.
Regular scheme or composition
Small traders can opt for the composition scheme: a fixed rate on turnover and fewer returns, but no input tax credit and no GST on invoices. If most of your customers are GST-registered businesses that want credit, the regular scheme usually works better. If you sell mainly to consumers and buy from small suppliers, composition can be simpler. We compare both on your figures.
Keeping the numbers consistent
For traders, the same sales appear in several places: the billing software, the GST returns, the bank statement and the books. Problems start when these drift apart.
- Reconcile cash sales with bank deposits every month.
- Match purchase invoices with GSTR-2B before claiming input tax credit.
- Keep a stock register or at least monthly stock statements, especially if you have a bank limit.
Income tax for traders
Small traders may be able to use the presumptive taxation scheme, declaring profit at a prescribed percentage of turnover instead of maintaining detailed books. It suits some businesses and not others, particularly where actual margins are lower or a loan application needs audited accounts. Larger businesses need a tax audit before filing the return.
Running a business in retail & trading?
Call during office hours, or send a WhatsApp message describing what you need.
- No documents needed for the first call
- Hindi or English