Start a small scale trading business – buying from door-to-door & then selling

You can start a small scale trading business, by purchasing product visiting door to door or from farmers or from villgers etc, and selling them further in the same state or different state. Here you will be guided. Here is complete step by step process based on buying any product from farmers in a state and selling them to traders in other state say Delhi, without owning needing GST registration initially.

Step-by-Step Business Flow:

Step 1: Buy Directly from Farmers:

Go to village to village and buy goods directly from small farmers which you want, it may by anything, wheat, rice, mustard etc.

Farmers, villagers usually will not provide you any invoices or bills as they are not legal entity or they are just agriculture producers. It is ok, and common and legal for agricultural produce.

Step 2: Maintain a Self-Purchase Register:

Since the farmers or local seller do not provide any invoice and they don’t keep, you can make purchase record yourself Prepare a simple logbook or Excel sheet with the following details:

You may take Adhar card no of seller,

You can also take photos of the goods you buy them.

Step 3: Transport via Indian Railways (Without Traveling Yourself):

Assume you bough the product in Keral and want to send in Delhi for sale.

You can send your goods from Kerala to Delhi via the Railway Parcel Office You must visit the Parcel Office at your nearest station Pack the goods securely in bags and stitched properly.

Mention description clearly: “Wheat (Agricultural Produce)”

Provide you ID proof (Aadhaar or PAN) to the parcel office

Receive a Parcel Waybill (receipt), which will be used to collect the goods in Delhi.

No GST registration or e-way bill is required if:

The value of consignment should be below Rs. 50,000.

If each consignment value or parcel value is under Rs. 50,000 then Eway bill not required and hence GST Reg. No also not required initially

Step 4: Receive and Sell in Delhi:

As the goods arrive in Delhi, Collect the parcel from the Railway Parcel Office using your receipt.

Sell directly to traders (Lalas) in the local market or where you want to sell.

You may have an office in Delhi but not necessary initially.

Even if you operate from home or a rented room, it is legally acceptable. Your residence can be used as your business address.

Step 5: Keep Sales Records:

Maintain a simple Sales Register:

Sample is given below:

Issue a simple cash memo if the buyer asks.

You can issue invoice on your letter head, which is very easy to prepare and maintain.

Accept payment in cash or bank transfer.

Do You Need an Office in Delhi?

No, you do not need a formal office. Operating from your home is allowed. No shop board or commercial rental agreement is required at this stage.

Only if your business grows and you want to register under GST or open a business current account, you can use your home address as the official business address.

When Will You Need GST?:

You’re only required to register for GST when:

Your annual turnover exceeds ₹40 lakh (for trading businesses)

You may also want GST registration if no one is selling without having GST Reg. No

You want to voluntarily register to sell to GST-registered clients who need input credit.