GST Registration for Proprietorship Firm

| | , , ,

GST (Goods and Service Tax)  Registration is mandatory for every entity of business type. This also applies to proprietorship firms. However, there is a lot of confusion about it. That’s why, In this article, we will know about GST Registration for Proprietorship Firm in detail.

Know about Sole Proprietorship Firm

A sole proprietor is a corporation in which one individual is the owner of the company and also cares for business management. A Sole Proprietor is an ideal way to pick if you want to start your business with limited resources and finances.

In addition, if you want to carry out your company plan with the least legal compliance and minimal operating expense it is the most feasible type of business. Sole Proprietorship Registration does not necessitate legal formalities to start a business in India but some registrations, for instance, GST Registration or MSME registration, are mandatory as well as beneficial.

Let us now understand about GST Registration for Proprietorship Firm.

Know about GST Registration

Goods and Services Tax is a consolidated indirect tax policy that encompasses VAT, CST, Service Tax, Central Excise duty, Entertainment Tax, etc, and is valid all over India with effect from 1st July 2017. The registration of any business organization under the GST Law entails acquiring a unique GST number from the relevant tax authority.

Furthermore, for the purposes of collecting taxes on behalf of the government and claiming Input Tax Credit for taxes on inbound supplies, it is mandatory to have GST Registration. In simple words, GST is required to be paid by sellers of goods and services to the

When to get GST Registration for Proprietorship Firm?

In the following circumstances, GST registration for a sole proprietorship company is mandatory-

  • When sales or turnover of Proprietorship Firm exceeds 40 lakh rupees per year
  • In Special Category States, such as  in the North Eastern States, it is mandatory to get registered under GST if annual turnover exceeds ₹10,00,000/- (Ten lakh rupees)
  • When sole-proprietorship involves business of inter-state
    supplies of goods.
  • When the company sells items or services between different countries.
  • E-commerce operators such as Amazon and Flipkart also require GST Registration.
  • If the company wants to claim the credit for the input tax on the purchase.
  • On a voluntary basis

What are the Documents required?

  • Scanned Copy of Pan Card of the Proprietor
  • Scanned Copy of Aadhar Card of the Proprietor
  • Electricity Bill, Telephone Bill or water Bill  of Business Location or Premise or Rent Agreement if Office is on rent
  • Personal Bank Statement  or Cancel Bank Cheque or Passbook Frontpage Copy of the Proprietor
  • Passport Size Photographs of the Proprietor

Are there any compliances under GST Registration for Sole Proprietorship firm?

Once you’ve registered as a proprietorship with the GST, you’ll have to comply with various regulations. The major compliance after registering under GST is GST Return Filing.

GST Registration for Amazon Sellers

If you want any other guidance related to Sole Proprietorship Registration or GST Registration, please feel free to talk to our business advisors at 8881-069-069.

Download E-Startup Mobile App and Never miss the freshest updates narrating to your business.


Frequently Asked Questions on LLP- Limited Liability Partnership in India

APEDA and NAFED sign MOU to help Exporters and Cooperatives


Leave a Comment