GST registration is mandatory for all persons with an annual turnover above Rs. 20 lakh and special category state businesses with an annual turnover of Rs. 10 lakh. Apart from this, any person making interstate sales must also register for GST. Individuals must register for GST and obtain a unique 15-digit GSTIN. Eligible persons must provide all GST registration documents.
It is a long process and requires business-related documents. The documents required for registration vary depending on the type of company registration.
Which document is mandatory for GST?
Below are the documents you need for GST registration:
1. Business owner Documents:
- Pan card
- Aadhar Number
- Photos etc
2. Business Documents:
- Business address proof (Ownership or Rent agreement)
- Bank Statement or Passbook
- Registration Certificates, MOA, AOA
When should a sole proprietorship register for GST?
A sole proprietorship is a popular business structure due to its simplicity, ease of setup, and low cost. Sole proprietors can start their businesses by registering their names and obtaining a local license.
When a sole proprietor engages in a specific business, must register for GST. A proprietorship firm must obtain GST registration in the following circumstances:
- If the annual turnover of the company exceeds 40 lakh rupees.
- When a proprietary firm sells goods or services from one state to another.
- If you are in the e-commerce business.
- To be eligible for an input tax credit, a Proprietary Firm must have GST Registration.
- Voluntary registration
What are the documents required for a proprietorship firm?
The GST registration process is lengthy and requires you to submit business-related documents. A business must electronically submit an application in form GST REG-01 to GST common portal www.gst.gov.in
Documents Required for GST Registration of Individuals and Proprietors are:
- PAN card (mandatory)
- Aadhaar Card
- Photograph of the sole proprietor in passport size (in JPEG format, maximum size – 100 KB)
- Registered address proof: For address, proof submit the following documents
➤ Receipt for property taxes
➤ A copy of Municipal Khata
➤ A copy of the electricity bill
➤ Ownership deed (in the case of owned property)
➤ Owner’s NOC and rent or lease agreement (for a leased or rented property)
➤ Owner’s consent letter or NOC (for a consent arrangement or shared property)
Bank account details: You must include a copy of a canceled cheque or an extract of a passbook/bank statement (in JPEG or PDF format, with a maximum file size of 100 KB).
Once you upload all the documents, you will receive an Application Reference Number (ARN) via email and mobile number.
How do I get a GST certificate for a proprietorship?
You can perform the process of registration online through a portal maintained by the Central Government of India. The registration process for a proprietary certificate is as follows:
Steps:-
1: Create a TRN:
Fill out the basic information at https://reg.gst.gov.in/registration/.
Click on proceed to get OTPs on your mobile number and email address. You will receive TRN on your mobile number and email id.
2: Open the Registration Application
- So, open the link https://reg.gst.gov.in/registration/ again.
- Select TRN Option
- Enter the TRN and Captcha code
- Click Proceed. Finally, provide the OTP to open the application.
3: Please complete the application form:
The application will appear like a draft, click on the action to open the application
Business Details: Provide Trade name and Tax Jurisdiction.
Information of proprietor: Enter the owner’s personal and identity information, and address, attach a photo of the owner, click Save, and proceed to the next tab.
Authorized Signatory: You don’t need to enter anything here. Click the ALSO AUTHORIZED SIGNATURE option at the end of the second tab.
Principal place of Business: Provide your company address, attach a utility bill as proof of address and ownership, and a copy of your electricity bill, and select the type of activity at the above address. Click Save & Continue.
Goods and Services: Select the Product HSN Code or Service SAC Code appropriate for your business and click Save and Continue.
Aadhar Authentication: Select Yes to the question Promoter/Partner, would you like to opt-in to her Aadhaar Certification of Approved Signer?
Verification:
- Click on the verification box provided there.
- Select the authorized signatory and enter the Place and Date.
- Click on Submit with EVC.
- Enter the EVC Code sent to your mobile number and email address and finally submit it.
4: Aadhar Authentication:
- After you submit your application, you will receive a link for Aadhar Authentication.
- Click on the link and enter the Proprietor’s Aadhar number.
- Click Proceed to Generate Aadhar OTP, enter the OTP, and then click Submit. Please keep in mind that the OTP will be sent to the proprietor’s Aadhar-linked mobile number, not the mobile number provided in the Registration application.
5: ARN Number:
Once your Aadhaar authentication is complete, you receive an ARN Number, and Tax authorities will verify your registration.
6: Provide Bank account Details:
- Once your application is approved, you will receive login credentials via email, which you can then use to create new Credentials. The Old Credentials must be replaced.
- Now, use your new Login Details to access your GST Account. The system will request your bank account information.
- Provide your bank account information and submit it using EVC.
- Once the bank account information is provided, you can immediately download the GST Certificate from Downloads.
What is the cost of GST registration?
In India, GST registration is free. To register as a GST taxpayer on the official government website, there are no fees to pay. Although there is no official government fee registration for GST, you must a professional fee to ease the GST registration process. GST registration involves some technical aspects, so professional fees are chargeable.
Can sole proprietors claim GST?
The input for GST can only be claimed if the sole proprietor is a registered dealer and the goods that he has purchased is also from a registered dealer. If the sole proprietor buys goods from a dealer who is registered under the composition scheme then he cannot avail of the input tax credit. Also, if you as a sole proprietor are registered under the composition scheme, you cannot avail of the input tax credit.
What is proof of proprietorship?
A sole proprietor is an individual who runs their own business. They do not segregate the company from the owner’s tax or legal obligations. A company may operate under a different name than the person often referred to as the Doing Business (DBA). Documents proving that you are a sole proprietor include
- A copy of the owner’s tax return with Appendix C is attached.
- A copy of the DBA showing that person set up a different company name.
FAQ
Can I issue invoices without GST?
Businesses registered under GST must issue invoices when selling goods or services to customers. Depending on the type of registration and type of delivery, the company must issue sales invoices, delivery notes, credit notes, or debit notes.
Can I sell my product without GST?
Yes, you can sell your products online without GST registration until your turnover reaches the limits set by the authorities. If you exceed the limit, you will need to register. Online marketplaces such as Amazon and Flipkart require merchant GST for registration.
How long does the GST registration take?
If all documents are submitted correctly, it takes 1-2 days or a few hours.
Is GST registration required for proprietorship?
No, sole proprietorship businesses do not need GST registration. However, banks may require registration of sole proprietorships during the financing process.
What is the time limit for GST registration?
The period for applying for GST registration is 30 days after becoming liable for GST registration.
Which stamp is required for proprietorship?
No, stamps are required for proprietorship.
Conclusion
The GST registration process is fully electronic. It is important to create documentation according to the proper criteria. To obtain GST registration, the sole proprietor must apply the GST portal on the GST REG-01 form.