GST Registration Documents Required for Partnership Firm

What is GST, and why is it important for partnership firms to register for it?

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?

The following documents are required for the GST registration of the Partnership Firm:

• PAN card of the firm and all the partners
• Aadhar card of the authorized signatory
• Photographs of all the partners and the authorized signatory (in JPEG format, maximum size – 100 KB)
• Bank account details of the firm
• Address proof of the principal place of business and the partners
• Partnership deed
• Proof of appointment of the authorized signatory
• In case of LLP, registration certificate or board resolution of LLP

Documents to prove the address of the registered office:

• If the firm or a partner owns the property, you'll need to provide any utility bill, landline bill, water bill, municipal kata copy, or property tax receipt.
• If the property is rented or leased by the firm, you should submit a copy of the rent or lease agreement along with a no objection certificate (NOC) from the owner of the property.
• If the property is shared or used with the owner’s consent, a no objection certificate (NOC) from the owner of the property is required.

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.