Documents Required for GST Registration for LLP Companies

Until January 2023, there were more than 14 million GST taxpayers reported in India. As India is emerging as a new business leader in the contemporary world, the Goods and Services Tax (GST) regime is a crucial step for businesses, especially for Limited Liability Partnership (LLP) Companies that enable it to claim input tax credits and many more benefits. GST registration for an LLP requires a lot of documentation. In this blog post, we will walk you through the entire process of GST registration for an LLP, focusing on the documents you will need to gather, the steps involved, and some frequently asked questions to clear any doubts you may have.

What is GST? And why its Registration is Essential for LLPs

Before diving into the documentation required for GST registration, it’s important to understand what GST is and why an LLP needs to register under it.

GST is a single tax that subsumes multiple indirect taxes like VAT, excise duty, and service tax. It applies to the supply of goods and services in India. GST registration is mandatory for businesses whose turnover exceeds a certain threshold and for businesses involved in the interstate supply of goods and services or those engaged in e-commerce. GST registration for LLP is not mandatory, but for an LLP, GST registration becomes necessary when:

• The turnover of the LLP exceeds the prescribed limit (currently ₹40 lakhs for goods and ₹20 lakhs for services, but this can vary depending on the type of business and state).
• It intends to supply goods or services across state borders (interstate).
• The LLP is involved in e-commerce or needs to claim tax credits.

Benefits of GST Registration for LLP

Registering GST for LLP includes numerous benefits including:

1. The company/business is legally recognized as a legal supplier of products or services.
2. The company/business can claim an input tax credit.
3. The company/business gets the liberty to make unrestricted interstate sales.
4. The company/business can signup for business on the e-commerce platforms.
5. The company/business gets a competitive edge over other businesses.
6. Small businesses with an annual turnover below ₹40 lakhs for goods and ₹20 lakhs for services are not mandated to register GST, thus the small LLPs who wish to register the GST voluntarily can avail the benefits of registration.
7. GST system operates online that further enable LLPs to file their returns, pay their taxes online making them less occupied with the traditional paperwork.

Key Documents Needed for GST Registration for LLPs

GST registration is a crucial step for the LLP and documents are required to verify the identity, business structure, and operational legitimacy of a business.  The documents ensure that the LLP stays legally compliant with the statutory obligation and that transparency is maintained in the business. Without the following documents, the LLP will not be able to register for GST.

1. PAN Card of the LLP

The Permanent Account Number (PAN) card is required for both the LLP as well as its individual partners. The PAN card serves as proof of identity of the entity and is needed to verify the status of the business with the Income Tax Department of India.

• LLP PAN: A copy of the PAN card of the LLP is needed.
• PAN Card of Partner of LLP: A copy of the PAN cards of all the individual partners of the LLP is also required.

2. Proof of Business Constitution (LLP Agreement)

The LLP agreement is the mist crucial document that proves the incorporation of the LLP. It determines the terms and conditions that governs the relationship between the partners within the organization, their rights, obligations, and their duties. The LLP agreement is crucial to verify the legal status of the business.

• The LLP agreement should be signed by all the partners and should be submitted as a scanned copy during the registration process.
• If the LLP agreement is not available or is in draft form, a partnership deed or other similar documents can be provided.

3. Identity and Address Proof of the Partners

Each partner needs to provide valid proof of identification. It includes:

• Aadhaar card: A copy of each partner’s Aadhaar card.
• Voter ID card, passport, or driver’s license: Any of these documents can also serve as identity proof.

In addition to identity proof, address proof is also required. For address proof, the following documents are required:

• Aadhaar card (if the address is mentioned)
• Passport
• Voter ID card
• Utility bills (electricity bills, telephone bills, etc.) should not be older than 2 months.

4. Proof of Business Address

The business address must be verified to complete the registration. The following documents can serve as proof of the registered office address of the LLP:

• Rental agreement/lease agreement: If the business premises are rented, a copy of the rental agreement must be submitted.
• Property tax receipt: If the property is owned by the LLP, a copy of the property tax receipt can be submitted.
• Utility bills: A recent utility bill (electricity, water, or gas) in the name of the LLP or the business owner (if the property is self-owned) can also serve as address proof.

5. Bank Account Statement or Cancelled Cheque

A copy of the statement of the bank account of the LLP that containing account number and firm name is needed to complete the GST registration process. As an alternative to the bank account statement, a cancelled check made out to the LLP is also acceptable.

6. Digital Signature Certificate (DSC)

For GST registration, a Digital Signature Certificate (DSC) is required for submitting the application online. The DSC is used to authenticate the submission of documents electronically.

• The DSC is generally required for authorized signatories or the designated partner of the LLP.
• You can obtain a DSC from a government-approved certifying authority.

7. Authorization Letter/Board Resolution

An authorization letter or a board resolution is necessary if a person other than the partners is filing the GST application. This document authorizes the person to act on behalf of the LLP for GST-related matters.

Note: Partners have to have a board resolution showing their consent when filing an application as an authorized person.

8. Additional Documents for Specific Cases

In some cases, additional documents may be required, depending upon the nature of the business or the type of LLP. It includes:

• For businesses involved in interstate trade: Proof of interstate supply, such as contracts, purchase orders, or invoices.
• For businesses in special categories (e.g., e-commerce): Additional documents as per the GST guidelines for specific business models may be requested.

Step-by-Step Process for GST Registration for LLPs

Once all the documents are gathered, the next step is to proceed with the GST registration process. Below are the steps that you need to follow:

Step 1: Visit the GST Portal

Go to the official GST website at www.gst.gov.in and click on the “Services” tab. Select “Registration” and then click on “New Registration.”

Step 2: Fill in the GST Registration Application Form

In this step, you will have to fill out the GST REG-01 form. The form will require you to provide details about your business, such as:

• Legal name of the LLP
• PAN of the LLP
• Address of the business
• Type of business (goods or services)
• Details of the partners, including their PAN, name, and contact information

Step 3: Upload the Necessary Documents

Upload the documents you have collected, including the PAN card, address proof, LLP agreement, and identity proof of the partners.

Step 4: Verification of the Application

Once the application and documents are submitted, the GST authorities will verify the details of the application. Additional information may be needed by the GST authorities if it is needed:

Step 5: GSTIN Issuance

Upon successful verification, the GST authorities will issue a GSTIN (Goods and Services Tax Identification Number) to your LLP. The GSTIN can be used to file returns, claim input tax credits, and comply with other GST requirements.

Documents for LLP and other entities

Conclusion

GST registration is crucial for an LLP as it increases the credibility of the business and ensures that the business is running smoothly. The documentation process is crucial for GST registration, and merely gathering all the necessary documents is not sufficient; the documents need to be authentic and true. The registration process may be delayed or cancelled if there are any discrepancies in the paperwork. One of the many benefits of the GST is the ease with which tax credits can be claimed. For Limited Liability Partnerships, compliance is therefore essential not only at registration but also after registration. If you are an individual or a business person who is looking to gain insights into the registration of GST numbers, feel free to reach out to us. Our professional team is ready to assist through the complexities of documentation and process and help pave the way for your success.

 FAQs

1. What happens if the LLP does not register for GST?

If the LLP fails to register for GST when required, it may face penalties, fines, and could be disqualified from claiming input tax credits.

2. Is the GST registration process online?

Yes, the entire GST registration process for an LLP is online and can be completed through the official GST portal.

3. How long does it take for an LLP to get GST registration?

Generally, GST registration for an LLP is processed within 7 working days, provided all required documents are submitted correctly.

4. Do I need a separate GST registration for each branch of my LLP?

Yes, if the LLP has multiple branches in different states, separate GST registration is required for each state.

5. Can the LLP update its GST registration details?

Yes, the LLP can update its GST registration details (such as business address or partners) through the GST portal, subject to verification and approval.