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Posted on November 22, 2021
GST Registration Documents for Proprietorship
Proprietorship or Sole Proprietorship entity can be understood as the one which will be owned by a sole proprietor. It will be run, managed, and operated under the supervision of one person who is also the owner of the entity. It is one of the easiest manners in which a business can be set up and run by a business person. As they are not governed by any specific laws in force in the country, it is an easy way for small business. Most of the time the sole proprietorship shall be opted by an entrepreneur for running small grocery stores, printing press, or such other accounting or tax consultancy firms run on a local basis.
Despite not being registered separately and not having separate legal standing from the owner of the business, the sole proprietorship concerns are expected to comply with the taxation laws like GST, and Income Tax which should be paid on the income earned by the entity from the goods or services being sold during a month or financial year.
For this like any other concern or taxable entity, the proprietorship concern also needs to have some documents kept ready which is the major point of discussion under this article given here.
A proprietorship concern would need to take GST registration in the following circumstances namely:
- When the turnover made by the entity during a financial year exceeds the current threshold limit specified by the GST Act which is INR 40 Lakhs.
- When the proprietorship entity is engaged in the selling of their products or services to another state which is known as the interstate sale.
- When the entity wants to take a voluntary GST registration.
- When the entity is engaged in the e-commerce business operation.
- Or when the entity wants to claim the ITC (Input Tax Credit) which is available to them on the basis of the GST that will be paid them during the purchase made for the furtherance of business.
Documents Required for Availing GST Registration
For a proprietorship concern to avail registration under GST, there are certain documents that are required and the same has been given below and discussed for further understanding
It is issued by the UIDAI (Unique Identification Authority of India) and holds biometric information like fingerprints, signatures, and other information pertaining to the individual. It can be often used as a relevant document by individuals while they are trying to take registration or avail a service like taking of SIM Card, Passport, or PAN card.
For getting registration under GST, the proprietorship concern should submit a copy of the personal Aadhar card of the proprietor. The proprietor can connect with the Aadhar Seva Kendra or the nearest E-Mitra for getting a new Aadhar, which shall be delivered to the registered address within a span of 15 or 20 days.
PAN which stands for Permanent Account Number, is again a mandatory one that should be owned by every taxpayer. Here is the owner of the sole proprietorship concern is the one who gives the entity a legal standing, for the purpose of registration under GST, the copy of the PAN of the proprietor needs to be submitted.
In the case of a proprietor owning an Aadhar, it is easy to apply for PAN by going to the NSDL website. As it can be easily applied for using the e-KYC option available w hich would help you get the PAN on the same day or without any delay at the payment of certain prescribed fees. Here the PAN which is immediately available shall be in softcopy while a hard copy shall be delivered to the registered address within 15 to 20 days.
Bank Account Details
The bank details like the copy of the bank account statement or a canceled cheque or the copy of the first page of the passbook shall be presented for the availing of registration under GST. Here one point to be noted is that, if there is a current account opened in the name of the proprietorship concern then the copy of such account shall be provided and preferred over the savings bank account details.
Proof of Registered Office Premise
For providing proof of registered office premise and its existence the proprietorship should provide a copy of the electricity bill or telephone bill or property receipt or water bill paid on a recent basis. And if premise is a rented one then copy of rental agreement shall also be submitted as proof for the registered office premise of the proprietorship entity.
Along with the above-stipulated documents, having proper licenses being taken with respect to the local authorities and laws in force for a legal and easy running of the business shall also be complied with by the proprietor and his entity. This if not complied with or has been found to be tampered with shall affect the credibility of the entity not just with the consumers but also before the eyes of the law. This will increase the cost burden of the entity in the way of penalty, fine, or interest being levied and also affect the long-term standing of the business.
And once all the documents are ready the entity should start the GST registration procedure after which a GSTIN shall be issued making it mandatory for the proprietor and his entity to file monthly returns and pay the GST as applicable.