Can a Proprietorship Firm Be Registered Under GST?

Proprietorship firms, or sole proprietorships, have a unique relationship with the Goods and Services Tax (GST) in India. Unlike other business entities, a proprietorship firm is not a separate legal entity from the owner. Therefore, GST registration for a proprietorship firm is primarily linked to the individual owner's Permanent Account Number (PAN) card. This guide outlines the key points you need to know about registering a proprietorship firm under GST.

Key Points on GST Registration for a Proprietorship Firm

PAN Requirement

The GST registration process requires a PAN card. However, in the case of a proprietorship firm, this can be the PAN of the individual proprietor rather than a separate PAN for the firm. If you do not have a PAN card in your name or the name of your firm, you will need to obtain one.

Documents Needed

To initiate the GST registration process, you need to provide the following documents:

Proof of business registration if applicable Address proof of the business Identity and address proof of the proprietor Bank account statement or cancelled cheque

Application Process

The easiest way to apply for GST registration is through the GST portal. This involves filling out the application form and submitting the required documents online. Ensure that your application is complete and accurate to avoid delays.

Threshold Limit

Before applying for GST registration, ensure that your business turnover exceeds the prescribed threshold limit. This limit varies depending on the type of goods or services you are providing.

Once you have your PAN card, you can proceed with the GST registration process. If you need assistance or have further questions, feel free to reach out!

Registering Your Proprietorship Firm Under GST

Yes, you can indeed register your proprietorship firm under GST. The main requirement is that your PAN would be the same as the proprietor's PAN. GST can be obtained using your individual PAN.

Under GST, there are two terms: the legal name and the trade name. The legal name is the name of the individual as mentioned on the PAN, while the trade name is the name of the firm under which you are carrying out your business operations. For example, if your legal name is Tarun Bhattacharya and you are a proprietor, you can register your firm under any trade name as long as you use your individual PAN.

Easy Registration for Proprietorship Firms

Registering a proprietorship firm for GST is relatively straightforward. If your business turnover exceeds 20 lakhs (approx. $28,000 USD), you would need to acquire a GST number. However, this requirement is set based on the threshold limits for different types of goods and services.

If you do not have a PAN number, there is no reason to worry. You can register your firm using your own PAN number. For any further assistance or support, feel free to contact us at 91 9004352019.

We hope this information helps you understand the process and requirements for registering your proprietorship firm under GST.