The GST registration process is completely online, and no physical documents must be submitted to the GST Department. To complete the GST registration steps, it is critical to organise the paperwork in accordance with strict regulations. To obtain GST registration, the proprietorship must submit an application to the GST site in Form GST REG-01.
As of now, GST registration is required for all goods and services except petroleum products. GST is a consolidated tax, which means that both state and central indirect taxes have been combined. The entire country is subject to a single tax system. GST has taken the place of service tax, excise tax, VAT, entertainment tax, luxury tax, octroi, CST, and other taxes.
When Proprietorship GST Registration is Required
- When the annual revenue of a company exceeds 40 lakh rupees.
- When a sole proprietorship firm sells goods or services across state lines (from one state to another) or engages in e-commerce.
- When a sole proprietorship wishes to claim an ITC for a purchase.
- On a purely voluntary basis.
- GST Registration Documents Required
- Applicant’s PAN
- The Aadhar Card
- Proof of business address
- Evidence of business or registration
- Directors’ identity and address proof, including photographs
- Cancelled Cheque or Bank Account Statement
- Letter of Authority
- Digital Signing (not required in proprietorship firm)
How to Register for GST as a Sole Proprietorship
All you have to do is go to the GST India Official Website and fill out a registration form with your personal pan card, as a proprietorship firm does not require a separate Pan Card.
You can also obtain GST Registration for a sole proprietorship, as well as the necessary documents, by contacting a professional legal service or a GST Consultant.
Advantages of Sole Proprietorships
Proprietorship businesses provide several advantages to their owners. Some of these advantages are discussed in greater detail below:
1. Easy Start
There is no complicated registration procedure for establishing sole proprietorship firms. A proprietorship firm operates under the legal identity of the owner. This provision eliminates the need to register the firm separately until it is required. This simple registration process makes it easier for owners to register their businesses, which is advantageous.
2. Operational Strategies That Are Versatile
It is easier to understand and operate a business as the sole owner. The sole decision-maker is the owner. As a result, the decision is made faster and better for the company. Because there is only one person to create and implement business plans, one-owner businesses have more straightforward operational functioning.
3. Profits Undivided
Because there is only one owner of a proprietorship firm, there are no firm rules for the money earned by the business. The owner is the only one who can accumulate profits and invest them in the market and other ventures. Sole ownership eliminates benefit-related conflicts in the company. Money is brought in to help facilitate and maintain the firm’s processes.
4. Taxation
If the profits of the company are less than Rs. 2.5 lakh per year, the sole proprietor is not required to pay income tax. This is a significant benefit for the firm because it allows it to start small and save money on taxes. It is important to note, however, that the company must pay income taxes if its profits exceed Rs. 2.5 lakh per year.
These are some of the significant advantages of running a sole proprietorship business. Having a sole proprietorship firm can help with business loan applications and investment capital.
Information Required for Proprietorship GST Enrollment
During GST enrollment, you will encounter ten tabs, with the highlighted ones requiring completion and saving.
Provide your company’s trade name and tax jurisdiction.
Proprietor Information: Include the proprietor’s personal and identity information, residential address, and a photograph of the proprietor. Continue to the next tab by clicking on Save.
Declare that the proprietor is an authorised signatory, which is standard in all proprietorship firms. The details from the second tab will then be auto-copied to the third tab; click save and proceed to the next.
Principal Business Location:
Provide the business address and attach an electricity bill as proof of address and ownership, as well as a copy of the EB, and select the nature of activity at the above-mentioned address. Click the Save & Continue button.
Select the HNS code for the goods or the SAC code for the services that are appropriate for your business. Click the Save & Continue button.
Aadhar Authentication: This is a new tab that was recently added. Select ‘Yes’ to the question ‘Would you like to use Aadhaar authentication for Promoters/Partners/Authorized Signatories to have the registration approved as soon as possible
Verification: Click on the verification box, select the authorised signatory, enter the ‘Place,’ and then click on submit with EVC, enter the EVC Code sent to your mobile number and email address, and finally submit it. Before registering for GST, use our GST calculator to calculate the exact amount of GST to be paid.
Get Assistance with GST Registration for a Sole Proprietorship
GST online registration entails a number of time-consuming and complex procedures. Eligible applicants must first determine the type of GST they require, followed by the number of states in which they must register.
We recommend that you seek professional advice from Srvassociates to ensure that the GST registration process runs smoothly and without unnecessary delays.
Make an appointment with one of our legal professionals to register your sole proprietorship under the GST regime.