GST Fundamentals for Mobile Commerce in India
India's Goods and Services Tax (GST) system unified hundreds of state taxes into a single destination-based consumption tax. For small business owners selling online, tax compliance often feels overwhelming. However, understanding the core rules is straightforward:
- Turnover Thresholds: Businesses with annual turnover under ₹40 Lakh (for physical goods in standard states) or ₹20 Lakh (for services) are generally exempt from mandatory GST registration.
- E-Commerce Marketplace Rules: Selling on multi-vendor marketplaces (like Amazon or Flipkart) mandates GST registration regardless of turnover. However, selling via your own sovereign mobile app or WhatsApp direct store allows you to operate under standard turnover thresholds until you cross the limit.
- Inclusive vs Exclusive Pricing: Most consumer retail apps display tax-inclusive pricing so shoppers aren't surprised by extra charges at checkout.
For more details on avoiding platform deductions and gateway drop-offs, review our empirical study on direct UPI payments vs payment gateways or examine our transparent 0% commission pricing tiers.
CGST/SGST vs IGST: The Intra-State vs Inter-State Rule
GST is divided based on the geographic location of the buyer relative to the seller:
| Transaction Type | Buyer Location | Applicable Tax Type | Example on 18% Tax |
|---|---|---|---|
| Intra-State | Same State as Merchant | CGST (Central) + SGST (State) | 9% CGST + 9% SGST |
| Inter-State | Different State / Union Territory | IGST (Integrated) | 18% Full IGST |
Applicaz handles this calculation automatically based on the customer's delivery pincode and state.
HSN and SAC Code Requirements for Small Stores
The Harmonized System of Nomenclature (HSN) is an 8-digit international coding system used to classify goods, while SAC codes classify services. Common retail examples include:
- Food & Groceries (0% - 5%): Fresh fruits and vegetables (HSN 0701), unbranded foodgrains (HSN 1006), edible oils (HSN 1512).
- Apparel & Fashion (5% - 12%): Cotton clothing below ₹1,000 (HSN 6204: 5%), readymade garments above ₹1,000 (12%).
- Electronics & Hardware (18%): Mobile phone accessories and chargers (HSN 8504).
Applicaz allows you to assign HSN codes directly to each product in your catalog with zero complexity.
Capturing B2B GSTINs to Enable Input Tax Credit (ITC)
If you sell to other businesses, corporate gifting clients, or retail resellers, your buyers require an official tax invoice with their 15-character GSTIN number. Without this, they cannot claim Input Tax Credit (ITC) on their purchases.
Applicaz includes an optional B2B toggle during checkout. Corporate buyers enter their legal business name and GSTIN, which is printed automatically on the digital invoice. Learn more in our B2B Wholesale Catalog Guide.
Automated Digital & Thermal Invoicing with Applicaz
Applicaz (applicaz.xyz) turns tax compliance from a headache into an automated background process:
- Digital Tax Receipts: Customers receive an itemized digital invoice upon checkout showing subtotal, tax breakdown, and delivery charges.
- Thermal Receipt Printing: The Live Store Counter POS outputs 58mm or 80mm thermal receipts with your shop GSTIN and HSN codes pre-printed.
- Monthly Tax Summary: Export your monthly sales reports in clean CSV format ready to hand to your Chartered Accountant for GSTR-1 and GSTR-3B filings.
Applicaz plans start Free Forever (₹0), with the Starter Tier at just ₹349/month (was ₹699, save ₹350/mo) and the Pro Tier at ₹889/month (was ₹1,000, save ₹111/mo). Explore our transparent 4 plans or review the Applicaz Master Setup Roadmap.