On 1st July 2017, the Government of India decided to unify the tax system under the ‘One Nation, One Tax’ methodology. The idea was to integrate the different tax slabs and heads all under one tax head. This means all businesses in India now have to register themselves on the Goods and Service Tax Portal.
There are certain rules and eligibility criteria that need to be fulfilled for an individual or a business to register under the Goods and Service Tax Portal. Once a business is registered under the portal, they need to file for taxes monthly and annually and need to ensure that all the documents and paperwork are up to date.
There are certain documents without which one cannot register themselves on the GST portal and the requirements might be different for different businesses such as individual or sole proprietorship, limited liability partnership or Hindu united family. The requirements and paperwork for all these registrations are more or less the same, with maybe one or two documents here and there. We’ve mentioned all the documents required for the new business registrations.
What is the eligibility criterion for registering under the Goods and Service Tax?
All businesses, whether large corporations, micro, small and medium enterprises and even individual businesses need to register on the GST portal after they fulfil a few of the eligibility criteria.
- Any business that exceeds revenue of INR 40 lakhs is required to register on the GST portal, given whatever situation or line of business they’re in.
- However, if your business is registered in the states of Jammu and Kashmir, Uttarakhand, or any of the North Eastern states, the revenue threshold limit is INR 10 lakhs.
Some of the other eligibility criteria for a GST registration, irrespective of the turnover of the business is:
- Input Service Distributor or a Casual Taxable Person
- Non – Resident Taxable Person
- A business based on an e-commerce portal
- Supplier of a business based on an e-commerce portal
- Interstate supplier of goods and services
- Any service provider irrespective of the service provided and turnover generated
- Any individual or business that needs to pay tax under the reverse charge mechanism
- TDS/TCS Deductor
What are the documents required for GST Registration?
As mentioned above, depending on the type of business whether sole proprietary, partnership or HUF, the documents required might be different for different types of business. But there are a few common documents that are required throughout the course of the GST registration process. Whatever be the functionality of your business, these documents are common throughout.
General documents required for GST Registration irrespective of the type of business:
- Permanent Account Number (PAN Card)
- Proof of business registration or Certificate of Incorporation
- Identification card of the business owner or owners
- Address proof of the owner or owners
- Photographs of the owners or person in charge
- Registration address of the business
- Electricity or other bills of the business
- Bank account statements or cancelled cheque
- Digital Signature
These are the common documents that are required throughout the course of the registration process. We’re now going to list down the documents required especially in the case of different types and forms of business.
- Individual or Sole Proprietor
An individual or a sole proprietorship is a business that is conducted by a single person itself. It’s a one-person show and that individual takes all responsibility for the business, right from the get-go.
Since this is a sole proprietary and is run by a single individual, most of the documents required will be in the name of the individual itself and would not need any external parties approval or documents.
- Individuals PAN card and Aadhar Card
- Individuals Photograph
- Individuals Address Proof
- Individuals Bank Account Details
- Partnership Firms and Limited Liability Partnership
A partnership firm or a limited liability partnership is a business organisation that has a minimum of two partnerships. The difference between a partnership firm and a limited liability partnership firm is the liability that comes in an LLP. In a general partnership firm, the profits and losses are unlimited to the exposure between all the partners. However, in an LLP the profits and losses are divided only to the extent of the exposure or the equity they have in a company.
Ajay and Alifiya get into a business partnership for a business. It is a general partnership where they both have a 50% stake in the company. Due to some reason, the company faces losses and the losses are exposed to them both, requiring both of them to add more of their personal funds to run the business.
On the other hand, Priyanka and Yashna get into a limited liability partnership, both with a 50% stake and they both put in INR 50,000. The firm faces losses, but the losses are limited to INR 50,000 per share as they cannot lose more than they have put in.
Since this is a partnership firm, the documents required will be a few more as they involve more people and more legal processes. Some of the documents are:
- Partnership deed signed by all the partners of the company
- PAN card of all the partners
- Photographs of all the partners
- Address proof of all the partners
- In the case of LLP, proof of LLP registration
- Bank Details of the account registered in the name of the business
- Address proof of the registration of the business
- Signatory’s proof of appointment
- Aadhar card
In India, mostly all businesses opt to be a limited liability partnership as it is easier and the liability of the partner is defined. These are the general documents required for GST registration of an LLP or a partnership business on the GST portal.
- Hindu United Family
HUF or Hindu United Family is a business tradition that has been running in India for a very long time. It is very common for the children to take over the business and continue it. Not only that, many businesses are started as a joint family business, since families used to live together. Since a HUF usually has a Karta, that is the head of the business, they also have a special HUF Pan Card and other documents. This makes the documents required for GST purposes a little different and important.
- HUFs PAN Card especially issued to the HUF
- Karta (head of the family) PAN Card
- All owners photographs
- Registered proof of the business address
- Bank details of the HUFs bank account
Since these documents are required based on the family business and name, they are a little different from the ones mentioned above.
- Private Limited Companies
Many companies are started either by a single individual or a group of individuals. In partnership firms, sometimes the losses are extended to the partners. To separate this, people opt for private limited companies wherein the company is considered a separate entity from the partners involved in the company.
- The Ministry of Corporate Affairs incorporation certificate
- PAN card of all the partners or owners
- Article of Association but Memorandum of Association
- Signatories PAN and Aadhar Card
- PAN card of all directors on board
- Address proof of all directors on board
- Bank details of the registered bank account
- Business principal’s address proof
Apart from the following documents mentioned above, there are many different documents that could be needed and required based on different cases and scenarios. For example, the documents required for a Non-Resident Taxable Person could include quite a few more documents such as Visa details, corporation address in case they’re situated outside India, the unique number based on the country they reside in, and so on.
It is extremely important to look into the details of the documents required for GST registration. That is now mandatory, and failure to do the registration or a delay in the registration could cause penalty or charges. Once your GST registration is complete you can then start filing for your taxes every month and ensure your business is running seamlessly without hassle. These are all the documents required for a new GST business registration.