The most common type of Business in India is the sole proprietorship. This article will discuss the crucial documents required for GST registration for a sole proprietorship.

The GST registration procedure is entirely digital, and the GST Department must provide no physical documentation. It is essential to prepare the documentation in compliance with tight criteria. To get GST registration for Sole Proprietorship, the Business must submit a form to the GST portal on Form GST REG-01. GST registration for a sole proprietorship is required for all services and products, excluding petroleum items. GST is a unified tax, which implies that both state and central indirect taxes have been combined. The entire country is subject to a single tax regime. Let us have a look on the Documents Required for GST Registration for Sole Proprietorship in detail.

GST has taken the place of service tax, excise tax, Value Added Tax, entertainment tax, CST, and other taxes. GST registration enables the state to identify indirect taxpayers more efficiently and ensure tax compliance across the economy.

To collect taxes on the government’s behalf & claim input tax for taxes on incoming items, each business organization must enroll under the GST legislation and get a unique identifier number from the appropriate tax authorities.

Requirement for GST Registration for Sole Proprietorship

GST registration for sole proprietorship firms may be necessary for the following circumstances:

• When annual revenue exceeds ₹40 lakh
• When a proprietorship firm sells items or services over state lines (from one state to another). When a proprietorship firm engages in e-commerce
• When a sole proprietorship wants to claim a tax credit for inputs on a purchase voluntarily

So, under the requirements stated above, a proprietorship firm must file for GST registration.

Documents Required for GST Registration for Sole Proprietorship

This section contains the Documents Required for GST Registration for Sole Proprietorship

• Copy Of The Proprietor’s Personal PAN card

The Permanent Account Number (PAN) of the approved signatories/applicant would be required for any method of GST registration, sole proprietors, etc.

• Copy Of The Proprietor’s Aadhar Card

In contrast to the owner’s PAN card, an Aadhaar card is required for the registration of single proprietors. A unique number of PAN cards of the Corporation must be issued instead for Business.

• Proof Of Registration

If the office is rented, electricity, telephone, or water bills for the business location, premises, or rental agreement. These are some documents that can help you as proof of registration.

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• Bank Documents

You must provide identity and address evidence in addition to your Aadhar Number and PAN. You must also present GST registration paperwork to the bank executives to create a current account. A first-page photocopy of the proprietor’s bank statement canceled bank cheque, or passbook is needed.

• Photo And Digital Sign

GST registration requires passport-sized pictures of all proprietors, partners, and authorized signatures. These photographs should be submitted in a JPEG file for online applications, with a maximum length of 100KB.

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Information Required For GST Registration For Proprietorship

Here is the important information which is required for GST apply online of a sole proprietor.

• Business Details

Give your trade name and the tax jurisdiction in your business details.

• Proprietor Details

Give the owner’s name, address, and contact information. You may also include a picture of the owner.

• Authorized Signatory

Declare the proprietor as an authorized signatory, as is customary in sole proprietorship businesses.

• Principal Place Of Business

Choose the type of activity that will be carried out at the address mentioned above and give the business address along with an electricity bill as proof of both ownership and address.

• Goods And Services

Choose the HNS code for the products or the SAC code for the appropriate services for your company.

• Verification

Select the authorized signatory, enter the “Place,” click “Submit with EVC,” and input the EVC Code issued to your email and mobile number.

How to Register for GST as a Sole Proprietorship Physically?

• All you need to do is visit the Official GST India Site and fill out an application form with your Pan card since a proprietorship company does not require a separate PAN card
• You may also obtain GST registration for sole proprietorship and the necessary documentation by contacting a competent legal agency or a GST Consultant

Licenses Required to Operate a Sole Proprietorship

The fundamental licenses needed by a sole proprietorship are,

• Certificate of registration under the Shops and Establishments Act of the state where the Business is situated
• GST registration
• MSME registration.

Is It Mandatory to Have a GST License for a Sole Proprietor Firm?

If your company’s sales or turnover exceeds Rs.40 lakh in a single fiscal year, you must register for GST. Firms enrolled in particular category states, on the other hand, must seek GST registration if the threshold limit exceeds Rs.20 lakh. Regardless of turnover, each e-commerce vendor on an e-commerce aggregation platform like Flipkart or Amazon must have a GST registration. Any individual or Corporation considering starting their e-commerce firm must obtain a GST Registration.

Should the Single Proprietorship Firm’s Bank Account be in Its Name for GST Registration?

Yes, the lone owner must create a bank account in the name of their sole proprietorship firm. A solitary owner must complete a current version and conduct all proprietorship business activities in the sole proprietorship firm’s performance.

Conclusion

The GST registration procedure is entirely electronic. It is essential to prepare the documentation in compliance with tight criteria. To get GST registration, the proprietor must submit an application to the GST portal on Form GST REG-01.

You may register for GST if your yearly turnover exceeds Rs. 40 lakhs. You must also get a GST number if you perform online Business, such as writing your company on Amazon. GST registration for a sole proprietorship is straightforward and may be accomplished online through the GST portal.

GST online registration: https://www.gst.gov.in/ requires a variety of time-consuming and complex steps. Qualified applicants must first choose the type of GST they need, followed by the number of states in which they must register. You should get expert guidance from specialists to ensure that the Registration process runs smoothly and without unnecessary delays.

FAQs

What is the cost of GST registration for sole proprietorship?

There is no specific registration fee for GST. However, you might incur professional charges if you opt for professional assistance.

How to register GST for proprietorship?

To register for GST, visit the GST portal, fill out the online application form with required details, upload necessary documents, and submit. Upon verification, you will receive a GST registration certificate.

What are the documents required for GST registration of sole proprietor?

Typically, you need a PAN card, Aadhaar card, proof of business address, and bank account details. Additional documents might be required based on your business nature.

Why is GST registration essential for a sole proprietorship?

GST registration is crucial for businesses crossing the annual turnover threshold. It allows you to claim input tax credit, issue tax invoices, and comply with tax regulations.

Can a sole proprietor appoint an authorised signatory for GST registration?

Yes, a sole proprietor can appoint an authorised signatory to handle GST-related matters. The authorised signatory must be mentioned in the GST registration application.

Is GST registration mandatory for all sole proprietorships?

No, GST registration is mandatory only if your annual turnover exceeds the prescribed threshold limit.

How often does a sole proprietor need to file GST returns?

The GST return filing frequency depends on your business turnover. It can be monthly, quarterly, or annually.

Can a sole proprietorship apply for GST registration online?

Yes, the entire GST registration process can be completed online through the GST portal.

Is a PAN card required for sole proprietorship?

Yes, a PAN card is mandatory for GST registration and for conducting any business activity in India.