GST Registration Documents Required for Partnership Firm

Partnership Firm GST Registration

GST (Goods and Services) is a unified indirect tax regime that applies to the supply of goods and services throughout India. It subsumes various central and state taxes, such as service tax, VAT Value-Added Tax, and excise duty. GST simplified compliance and broadened the tax base. GST is a destination-based tax levied at the point of consumption rather than at the point of origin. GST is also a multi-stage tax collected at every stage of the production and supply chain, with a provision for input tax credit (ITC) to avoid double taxation.

GST registration enables partnership firms to charge GST on sales and claim ITC on purchases. GST registration also helps partnership firms comply with GST laws and avoid penalties and fines for noncompliance.

What are the eligibility criteria for GST registration for partnership firms?

A partnership firm is required to register for GST if:

• Its aggregate annual turnover exceeds ₹20 lakhs in a financial year.
• It is engaged in inter-state supply of goods or services, irrespective of the turnover.
• It is involved in e-commerce activities, such as selling goods or services through online platforms, irrespective of the turnover.
• It supplies goods or services to or from a special category state, such as Jammu and Kashmir, Ladakh, etc., and its turnover exceeds ₹10 lakhs in a financial year.

What are the benefits of GST registration for partnership firms?

• It enables the partnership firms to collect GST from their customers and pass on the tax burden to the end consumers.
• It allows the partnership firms to claim input tax credit for the GST paid on their purchases, which reduces their cost of production and increases their profitability.
• It helps the partnership firms avoid penalties and fines for non-compliance, which can range from 10% to 100% of the tax amount due.
• It enhances the credibility and reputation of the partnership firms in the market, as they can issue valid tax invoices and comply with the GST laws.

What are the documents required for GST registration for a partnership firm?

Here are the documents required for the GST registration of partnership firms -

• Partnership Deed - A partnership deed can be oral or written. However, it is advisable to have a written deed to avoid any future conflict. A partnership deed is a partnership agreement that is created on a judicial stamp paper obtained from the respective state registrar's office. This deed must be signed by all partners and should contain the rights and duties of the firm and the partners.
• Documents of the Firm -
  • PAN Card of the Firm - Partners must apply for the PAN of the firm. Form 49A should be filed to apply for a PAN. It should be filed online by visiting the NSDL website. It can be filed online only if the authorized partner signs the application using a digital signature.
  • Address Proof of Firm - If the registered office is rented, a rent agreement and one utility bill have to be submitted along with an NOC from the landlord.
    If the registered place is owned, the utility bill has to be submitted mentioning the owner’s name along with an NOC from the partner.
• Documents of Partners -
  • PAN card - All partners of the firm should have a PAN card which acts as an identity proof for the partners.
  • Address Proof - All partners of the partnership firm must submit any government-authorized address proof. Voter ID, Aadhaar card, driving license, passport, or utility bills not older than 2 months can be submitted.
• Additional Documents for Registration - The partners need to submit the partnership deed, ID, and address proofs of the firm as well as those of the partners to the registrar of firms. Along with this, an affidavit must also be submitted certifying the correctness of the details in the deed and documents.
• GST Registration - A firm needs to submit PAN number, address proof, identity of partners, and the firm to obtain GST registration. The authorized signatory has to sign the application either using a digital signature certificate or e-Aadhaar verification.
• Current Bank Account - For opening a current bank account, the firm needs to submit the following documents -
  • Partnership deed
  • Partnersdhip firm PAN card
  • Address proof of a partnership firm
  • Identity proofs of all the partners
  • Partnership registration certificate
  • Any registration document issued by the central and state governments
  • Copy of electricity bill, water bill or telephone bill
  • An authorization letter on the letterhead of the firm authorizing a partner as the authorized signatory for the bank account.

Procedure for GST registration for partnership firms

Step-by-step process for GST registration of a partnership firm:

• Step 1: Visit GST portal at (https://www.gst.gov.in/).
• Step 2: On the 'Taxpayers' page, select 'Register Now.'
• Step 3: Choose "New Registration."
• Step 4: Provide the following details:
  • Select "Taxpayer" from the "Who am I?" drop-down.
  • Choose the state and district.
  • Input the business name and PAN.
  • Enter the active email and phone number.
  • Solve the captcha and click "Proceed."
• Step 5: Input the OTP sent to your email and phone.
• Step 6: Click "Continue" after entering the OTP.
• Step 7: Note the Temporary Reference Number (TRN) shown on the screen.
• Step 8: Return to the GST site, select "Register" under 'Taxpayers,' and choose 'Temporary Reference Number (TRN).'
• Step 9: Input TRN and captcha for GST registration.
• Step 10: Click "Proceed."
• Step 11: Enter OTP sent to your registered email and phone, then click "Continue."
• Step 12: Check the application status on the next page.
• Step 13: Click the Edit icon, fill out all required information, and upload the necessary documents for GST registration as listed above.
• Step 14: After completing the details, submit the application using:
  • The Electronic Verification Code (EVC) was sent to your phone.
  • e-Sign facility with a one-time password sent to mobile number linked to Aadhaar.
  • Digital Signature Certificate (DSC) when registering a company.
• Step 15: A success message will be displayed after submission, and the Application Reference Number (ARN) will be sent to your email and phone.

Verify the ARN status on the GST site. If all documents are in order, you'll receive the GST registration number within seven days, completing the partnership firm's GST registration process.

Filing a GST return and being compliant with the GST laws can be challenging, especially for those new to the process. To ensure accuracy and avoid mistakes, it's advisable to consult professionals. Tax2win’s experts are ready to help with GST filing and answer all your GST questions. Book a tax expert today!