While many businesses are enrolled/transferred in GST, many
have not registered the same. According to the GST law, any business entity is
registered with the government to get a special GST number from the relevant
tax authorities for the purpose of collecting taxes from the government and
getting an input tax credit for taxes on domestic supply. In this article, we
will guide you through the GST registration process for a business entity.
What is
Proprietorship?
Definition of Proprietorship: Sole Proprietorship is a type
of unregistered business entity that is owned, operated and controlled. Solo Proprietorship
is the most common type of business in India and is used by most micro and
small businesses operating in the unorganized sector.
Starting a business is simple and requires minimal
regulatory compliance to work. This organization is ideal for entrepreneurs who
are going to do business for the first time and for small businesses with a
small number of customers.
Who is the sole Proprietorship?
The sole proprietorship of India is said to be owned by the
business owner. It cannot be a corporation or a legal entity Ownership and
ownership are legally considered equal entities PAN and other documents of the
owner are the basis for all other business registration and licensing. In case
of any liability issues in the business, the owner is personally responsible
for it
Documents required
for GST registration for Proprietorship firm:
The following documents must be submitted by the person or
organization applying for GST registration. - PAN card
- Aadhaar card
- Photo of the sole owner
- Bank Account Details - A canceled
check or a copy of the bank statement
- Proof of office address.
- Rent Office - Objection
Certificate (NOC) from the Lease Agreement and the Owner - Electricity Bill /
Landline Bill / Water Bill / Municipality Copy / Property Tax Receipt.
Benefits of
Proprietorship Registration:
Easy-to-setup:
Setup of the setup can start and charge from customers
because no registration is required to start ownership.
Ease of compliance:
Another advantage of ownership is that in most cases it does
not require any additional compliance. The owner and the owner's PAN are one
and the same .So in most cases, only income tax returns must be filed on Form
ITR-3 every year.
Ease of liquidation:
The owner does not have to close the company because he
wants to stop the work. It saves
more time and efforts.
Process of GST registration for Proprietorship Firm:
Any company or firm or person buying or selling goods or
providing services must register themselves under the Goods and Services Tax
(GST) in order to avail the benefits of input tax credit.
Registration of goods and services for GST can be done on
the tax website at www.gst.gov.in where a temporary reference number (TRN) is
created for the application.
- Login to the GST online portal.
- Fill out the Form Part-A (PAN,
Mobile Number, and E-mail).
- The portal verifies your details through OTP / e-mail.
- Upload the required document.
- Enter and fill in Part B using the
number you received.
- You will find the application reference number
- GST officials start checking your
documents.
- GST officials reject or accept
your application within 7 working days.
- If further evidence or
clarification is required, one must provide the same.
- The GSTN number will be
distributed to you after all clarifications.
The following are the
requirements for GST registration for Proprietorship :
- Officially known as a supplier of goods and services.
- It is legally empowered to collect
taxes from buyers and to pass credit on taxes on goods and services given to
recipients.
- Accurate calculations of taxes
paid on input goods or services that can be used to pay for GST by the supply
of goods or services or both businesses.
- Eligible for various benefits
under GST rules.
- There are simple and minimal
compliance with GST rules.
- The tax refund and taxpayer
registration process will be normal, when the tax return formats are the same.
If the owner is selling the goods or services, which exceeds
the GST transaction limit for registration. In most states, the annual income
for service providers is more than Rs 20 lakh and in the case of traders - the
annual income is more than Rs 40 lakh.
