Learn about GST for individuals in India, including registration, limits, tax rates & compliance for freelancers, business owners & online sellers in 2025.
In the evolving landscape of Goods and Services Tax (GST) in India, individuals engaged in economic activities face various obligations and opportunities under the GST framework. The registration process, primarily online, requires individuals to furnish details like PAN and Aadhaar, which, upon verification, enable them to harness benefits such as claiming Input Tax Credit and conducting interstate sales. The system, streamlined through the implementation of technologies like the Invoice Matching System (IMS), simplifies compliance and enhances transparency
Recent reforms in GST, aimed at rationalizing tax rates and easing filing procedures, further simplify the tax obligations for individuals, especially freelancers and small business owners. These changes, part of the broader tax reforms introduced in the Union Budget 2025, reflect a shift towards a more simplified and growth-oriented tax framework
In this blog, we will delve deeper into how these GST reforms affect individual taxpayers and explore the critical steps involved in the GST registration process. We will also discuss the implications of these changes for compliance and business operations.
GST for Individuals in India
Goods and Services Tax (GST) applies to individuals based on their income, business, or professional activities. Here’s a quick overview:
For Business Owners & Freelancers
If you run a business or work as a freelancer, GST may apply depending on your annual turnover.
- GST registration is required if annual turnover exceeds ₹40 lakh (₹20 lakh for services).
- The standard GST rate varies from 5% to 28%, depending on the goods or services.
- Composition Scheme is available for small businesses with turnover up to ₹1.5 crore, taxed at a lower rate.
For Salaried Individuals
Salaried individuals do not directly pay GST, but they may encounter it in certain expenses.
- No GST is applicable on salary income.
- However, GST is included in services like rent (commercial properties), professional fees, or online purchases.
For Rent & Property Owners
GST on rent depends on whether the property is residential or commercial.
- Residential property rent is GST-exempt unless rented to a registered business, which attracts 18% GST under RCM.
- Commercial property rent is taxed at 18%.
For Online Sellers & Influencers
Those earning through online platforms or social media must check if GST applies to them.
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- Online sellers and content creators earning through advertisements or brand promotions must register for GST if turnover exceeds ₹20 lakh.
Who is a Casual Taxable Person under GST?
A casual taxable person is an individual who occasionally undertakes transactions involving the supply of goods or services but not on a regular basis. For instance, if you participate in a one-time business venture or exhibition, you may be classified as a casual taxable person. In such cases, you need to register under GST to comply with tax regulations.
Who is a Non-Resident Taxable Person under GST?
Non-resident taxable persons are individuals residing outside India but occasionally supply goods or services within the country. If you are a foreigner involved in business transactions in India, you are considered a non-resident taxable person and must register under GST.
Who is a Composition Taxpayer?
Composition taxpayers are individuals whose annual turnover does not exceed a specified limit (discussed later in the blog). These taxpayers can opt for the composition scheme, which offers a simplified tax structure but comes with certain restrictions and limitations.
Who is a QRMP (Quarterly Return Monthly Payment) Taxpayer?
QRMP taxpayers are those individuals whose aggregate turnover falls below a specific threshold, and they have the option to file GST returns every quarter. This is an excellent option for small taxpayers who want to reduce the compliance burden.
What is the GST Limit for individuals?
The GST limit for individuals is a crucial factor in determining whether you need to register for GST. As of my knowledge cutoff in January 2022, the GST registration threshold for individuals is ₹20 lakhs (₹10 lakhs for special category states). However, these limits may change over time, so it’s essential to check the latest threshold limits.
Who is Liable to Get Registered Under GST?
As an individual, you are liable to get registered under GST if you meet any of the following criteria:
- Your aggregate turnover exceeds the prescribed threshold.
- You are a casual taxable person or a non-resident taxable person.
- You are involved in the supply of specific goods or services, such as agents, brokers, or dealers, irrespective of your turnover.
Major Points to Consider While Registering for GST for Individuals
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Aggregate Turnover Criteria
Determine if your aggregate turnover crosses the GST threshold limit. If it does, you are obligated to register for GST.
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Casual Taxable Person
If you occasionally engage in business activities, you must apply GST as a casual taxable person.
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Non-Resident Taxable Person
Foreign individuals participating in business activities in India must register under GST as non-resident taxable persons.
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Agents, Brokers, Dealers
Even if your turnover is below the threshold, if you are involved in specific businesses like acting as an agent, broker, or dealer, you must register for GST.
Documents Required for GST Registration for Individuals
To register for GST, you will typically need the following documents:
- PAN card
- Aadhar card
- Proof of business registration
- Bank account details
- Address proof
- Photographs
- Additional documents as required based on your business type
Read Also: GST Registration Documents
GST Registration by Type of Taxable Person
GST registration requirements vary by the type of taxable person. Ensure you understand the specific requirements that apply to your situation.
Special Provisions of GST Registration for Casual Taxable Persons and Non-Resident Taxable Persons
Casual taxable persons and non-resident taxable persons have unique provisions and requirements for GST registration. Familiarize yourself with these provisions to ensure compliance.
GST for Individual FAQs
Can an individual have a GST number?
Yes, an individual can get a GST number if engaged in taxable business activities. GST registration is mandatory if turnover exceeds the prescribed limit.
Do individuals need to register for GST?
Individuals are only required to register for GST if their annual turnover exceeds INR 40 lakhs. However, there are certain special cases in which individuals may need to register for GST even if their turnover is below INR 40 lakhs. For example, individuals who provide services to overseas clients may need to register for GST.
Are there any situations in which individuals might need to be aware of GST?
Yes, there are a number of situations in which individuals might need to be aware of GST, such as:
- When purchasing goods and services from registered businesses.
- When providing services to registered businesses.
- When importing or exporting goods.
- When selling goods or services online.
Is GST applicable for individuals?
Yes, GST is applicable for individuals. However, there are certain exemptions and concessions available for individuals. For example, GST is not applicable on certain essential goods and services, such as food, medicine, and education.
Can individuals claim Input Tax Credit (ITC) on GST paid for personal expenses?
No, individuals cannot claim Input Tax Credit (ITC) on GST paid for personal expenses. ITC is only available to registered businesses that use the goods or services purchased for their business operations.
Are there any GST exemptions or concessions for individuals?
Yes, there are a number of GST exemptions and concessions available for individuals. For example, GST is not applicable on the following:
- Food items
- Medicines
- Educational services
- Essential services, such as water, electricity, and sanitation
- Services provided by individuals, such as tutoring, consultancy, and medical services
How can individuals check if GST has been correctly charged on their purchases?
Individuals can check if GST has been correctly charged on their purchases by verifying the invoice. The invoice should contain the following information:
- The GSTIN of the supplier
- The description of the goods or services purchased
- The quantity and unit price of the goods or services purchased
- The rate and amount of GST charged
Individuals can also use the GST Rate Finder tool on the GST website to check the applicable GST rate on a particular item.
Is GST applicable on online purchases made by individuals?
Yes, GST is applicable on online purchases made by individuals. However, there are certain exemptions and concessions available for online purchases. For example, GST is not applicable on the following:
- Goods imported from overseas for personal use, if the value of the goods does not exceed INR 20,000
- Digital services provided by overseas suppliers, such as e-books, online music, and streaming services
What should individuals do if they believe they have been charged incorrect GST amounts?
If individuals believe they have been charged incorrect GST amounts, they should contact the supplier and request a refund. If the supplier is not able to resolve the issue, individuals can file a complaint with the GST authorities.
Are there any specific GST-related considerations for individuals when buying or selling property?
Yes, there are a number of specific GST-related considerations for individuals when buying or selling property. For example, GST is payable on the transfer of immovable property, such as land and buildings. Additionally, individuals who sell property may be able to claim ITC on the GST paid on the purchase of the property.
