GST Registration Necessary for Sole Proprietor Firm

In India, sole proprietorships are regular company structure. A sole proprietorship business is started and run by a single person. This type of business form is best suited for those who want to start a business with a low investment. In most cases, no registration is required. A sole proprietorship business can be set up from home or on a premises with minimal investment. The sole proprietor/owner who invests in the business has complete control over the operation. They bear all of the business's losses while enjoying all of its earnings. They can designate others to run the firm, but ownership will remain completely with them. Many small businesses, such as grocery stores, salons, boutiques, and retail stores, can be started as sole proprietorships. Even tiny traders and manufacturers can form a sole proprietorship.

Even though the sole proprietor is a single-person owner of the company. GST Registration of the sole proprietor allows its identification by the government and ensures tax compliance. With GST Registration the sole proprietor gets the benefit of the input tax credit, an increase in credibility, aid in the export, and many others. As sole proprietors do not need any registration due to their small size but under conditions they need to do so. By filling out the form and providing the required documents they can apply for GST Registration.

Get GST Registration of sole proprietor from the professional utilities without any hassle in just 1499/-

• A sole proprietor is engaged in interstate sales from one state to another state.
• When the annual turnover of the Sole Proprietor exceeds the limit of 40 lakhs in the supply of goods and 20 lakhs in supply of the services. And 10 lakhs in a special state like hill station or northern eastern states.
• When the business of the sole proprietor is e-commerce. Their work is linked to the digital platform.
• When the sole proprietor is engaged in the selling of services or goods between different countries.
• When a sole proprietor wants to claim the benefit of the input tax credit and take voluntary registration.

There are certain documents required for GST Registration for proprietorship -

• Bank account details such as cancelled cheques or bank account statements.
• Applicant’s PAN
• Authority Letter
• Aadhar Card
• Digital Signature
• Photographs of directors
• Address Proof and Identity Proof of Director
• Business Address Proof
• Proof of registration of the business

The cost of GST registration for Sole Proprietor is just ₹1499/- only with Professional Utilities.

STEP 1 - Visit GST Portal then log in. In the form name of the company or applicant, a mobile number, and an email address is entered. After verification, a TRN number is generated.

Step 2 - Fill up Part B of Form GST REG 01, in which banks and approved signatories for the corporation and many other details are entered . After verification, ARN No. is generated.

Step 3 - Different documents as required like bank statements, Aadhar cards, PAN cards, and other papers are uploaded in the prescribed format.

Step 4 - The tax officer will verify forms and documentation. According to the verification of the document by the tax officer, he accepts or rejects the application. If he is not satisfied with the documents he can reject the application and the applicant will be given 3-4 days for justification.

Step 5 - After acceptance of the application in GST REG 06 GST IN and GST Number are issued.

There are many benefits sole proprietors get after GST Registration as mentioned below -

Increase in credibility - Big firms get a good impression about the Sole Proprietorship. If they have GST Registration their reputation increases.

Government scheme - With GST Registration sole proprietors get the benefit of the government scheme.

Helpful in Import or Export - With the help of the GST Registration get IEC Code registration.

A sole proprietor does not need to get any registration certificate. If their turnover exceeds a certain limit and certain conditions fall true they are required to get the GST Registration. There are many benefits of GST Registration: an increase in credibility, claim of the input tax credit, help in the export of the firm, and many others. By filling out the form and providing documents GST Registration can be obtained.