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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.
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).
The following are the benefits of GST:
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:
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.
The following documents are required for GST registration of sole proprietorship:
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 (www.gst.gov.in).
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:
It is necessary to provide the trade name of the sole proprietorship firm along with the tax jurisdiction.
The proprietor’s details include ID proof, address proof, and a passport-sized photo of the proprietor.
The declaration by the proprietor, stating himself as the authorized signatory.
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.
Select the HSN or SAC code for the goods & services respectively applicable to the business.
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
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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