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GST Registration for Sole Proprietorship: Here’s all you need to know

GST Registration for Sole Proprietorship

GST came into force on 1st July 2017 as the only indirect tax applicable in the country. Implementation of GST has made the tax process simpler and of lesser compliance. GST registration for sole proprietorship is necessary to achieve the objectives and to reduce the complexity.

This article talks about the GST Registration for sole proprietorship in detail.

What are GST and GST registration of Sole proprietorship?

GST is Goods & Services Tax, an indirect tax that replaced all the indirect taxes (i.e., excise duty, service tax, etc).

GST came into effect on July 1, 2017, and since then, it is the only indirect tax applicable in the country.

GST is levied at every stage of sale, and it includes CGST (Central GST) and SGST (State GST).

Benefits of GST

The following are the benefits of GST:

  • It is an easy & simple process;
  • The minimum compliance is needed;
  • It has a higher threshold for registration; and
  • GST is regulating unorganized sectors also.

What is Sole proprietorship? Why GST registration of Sole proprietorship is needed?

Sole proprietorship is a type of company managed by a single person, and it does not have a complicated registration process. In this type of business, the person has to handle the business solely.

Benefits of sole proprietorship

The following are the benefits of sole proprietorship:

  • Sole person is responsible for the functioning of the company;
  • Lesser expensive & minimum compliance is required; and
  • No corporate tax payments.

Why GST registration for sole proprietorship is needed?

Under GST Act, 2017 every trader who exceeds a specific amount of turnover needs to obtain GST registration.

If the turnover is more than 40 lakhs for trading business, then GST registration for sole proprietorship is required.

If the turnover is more than 20 lakhs for service entity, then GST registration for sole proprietorship is required.

The GST registration for sole proprietorship is required to eliminate the flowing effect of tax and improve efficiency. After the GST implementation, all the indirect taxes were abolished and converted into one that simplifies the process of taxpaying much simpler.

Documents required for GST Registration for Sole Proprietorship

The following documents are required for GST registration of sole proprietorship:

  • PAN card
  • Aadhar card
  • Photo of sole proprietor
  • Bank account details by furnishing :
  • Copy of canceled cheque;
  • Front page of the passbook;
  • Bank statement.
  • Address proof of registered office
  • In the case of self-owned property, the address proof may be:
  • landline bill;
  • copy of electricity bill;
  • water bill;
  • property tax receipt;
  • municipal khata copy.
  • In the case of rented property, the address proof may be:
  • Rent agreement; and
  • NOC from the owner of the leased property.

Process for GST registration

The following steps are to be taken for GST registration for sole proprietorship:

Step 1 – Visit the official website of GST by the Government of India (

Step 2 – Click on Registration & then new registration.

Step 3 – Fill in all the details in the form that appears and then submit it.

Step 4 – A temporary registration number will be generated.

In case a person has not filled the complete application, he may open the application by using the TRN number and fill all the details.

The person may save the application and fill in the details later on by opening the application using the TRN number.

Using the TRN, the proprietor must authenticate the submission and fill in the rest details asked for the final submission.

The following details have to be submitted:

  • Business Details

It is necessary to provide the trade name of the sole proprietorship firm along with the tax jurisdiction.

  • Proprietor Details

The proprietor’s details include ID proof, address proof, and a passport-sized photo of the proprietor.

  • Authorized Signatory

The declaration by the proprietor, stating himself as the authorized signatory.

  • Principle place of business

It is compulsory to provide the address of the business place of the sole proprietorship firm. The proof of the address is required to be submitted, whether self-owned or rented property.

  • Goods and Services

Select the HSN or SAC code for the goods & services respectively applicable to the business.

  • Verification

Check the verification box & select the authorized signatory.

Once the application is submitted, an Aadhar Authentication is required to submit the application & ARN will finally be generated. Within a day of receiving ARN, the GST certificate will be generated.


GST is an indirect tax applicable all over the country since 1st July 2017. It is the only indirect tax that is applicable in India. All types of companies need to have a GST registration.

Therefore, the sole proprietorship, being managed by a single person, is required to obtain GST to simplify minimum compliance.

Read our article:GST Registration for Ecommerce Collecting TCS

Navdisha Sehgal

Completed BA LLB from JEMTEC, School of Law, Greater Noida (Affiliated to GGSIP University, New Delhi). I have an experience of about 2 years in various fields of corporate laws, but I have a keen interest in researching on legal issues and to gain knowledge. I always strive to bring the best to work on what I do.

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