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I want to start a website where I can sell my digital artwork, 3D models etc at the same time use the site to get freelance graphic design work.I know how to go about it technically but what are the legal requirements under the Indian law. I expect to make 30-40$/month as its a hobby that I would work on during my spare time, and think its not worth the hassle to go through the registration process.
Do I have to register myself as a business? How do I show my income and pay my taxes?Im a student and currently pay no taxes. Any advice...

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There is no requirement to open a company. You can work as freelancer. You need to report income and file returns. If your income is more than exempt limit, pay taxes. Apply for a PAN number if you don't have one yet.

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