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About this tool
Gross margin, net profit and income tax for a small retail shop, with the 44AD presumptive and GST composition options.
A kirana shop's taxable profit starts with the trading account — cost of goods sold is opening stock plus purchases minus closing stock, gross profit is sales minus that, and net profit is what survives rent, wages, electricity and delivery costs. This calculator builds that account, then computes income tax under both FY 2025-26 regimes and puts it beside the section 44AD presumptive figure of 6% on digital receipts and 8% on cash receipts, so a shopkeeper can see which basis costs less. GST registration, composition-scheme eligibility, books of account and audit thresholds are flagged from the same turnover figure.
Open Kirana Shop Profit and Tax Calculator on AltFTool — it loads instantly in your browser.
Enter the values you already know.
Fine-tune the options to match your scenario.
Read the result and use it in your planning or reporting.
Stock movement is handled properly, so gross margin reflects what actually sold rather than what was bought.
Both the presumptive income and the real profit are taxed under both regimes so the cheaper route is obvious.
40 lakh for GST on goods, 1.5 crore for composition, 25 lakh for books and 1 crore for audit are applied to your turnover.
There is no separate rate — a proprietor's shop profit is added to personal income and taxed at slab rates. Under the FY 2025-26 new regime the first 4 lakh is nil, then 5% to 8 lakh, 10% to 12 lakh, 15% to 16 lakh, 20% to 20 lakh, 25% to 24 lakh and 30% above, with a section 87A rebate of up to 60,000 that makes total income up to 12 lakh tax-free.
At least 6% of turnover collected through banking or electronic modes and 8% of cash turnover. On 60 lakh of sales with 30% digital collection that is 1,08,000 plus 3,36,000, or 4,44,000. You can declare more, but declaring less requires books under section 44AA and an audit under section 44AB(e).
Once aggregate turnover crosses 40 lakh for a shop supplying only goods — 20 lakh in the special category states. Many kirana items such as unbranded and unpackaged food grains are exempt or nil-rated, so check which of your sales count towards the taxable supply before you register.
It costs 1% of turnover (0.5% CGST plus 0.5% SGST) with a quarterly payment and a single annual return, which is far simpler than monthly filing. The trade-off is real: you cannot collect GST from customers, cannot claim input tax credit on your purchases, and cannot make inter-state outward supplies. Turnover must stay within 1.5 crore. Discuss the switch with a GST practitioner before opting in.
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