What is a proprietorship firm and GST?

A sole proprietorship firm is a one-person or Company that an individual manages, controls, and implements independently. It is the most preferred way to do business in India because only a few laws govern it.

Any company, establishment, or person buying or selling goods or providing services must register under Goods and Services Tax (GST) to avail of the benefits of an input tax credit. He will also need documents regarding GST registration to open a bank account for his firm.

Benefits of GST registration for Proprietorship Once registered for GST, the business

• It is legally recognized as a supplier of goods and services.
• It is legally authorized to collect tax from the purchaser and another pass on the credit of taxes paid on goods and services supplied to the recipients.
• There is a proper accounting of taxes paid on the input goods or services which is helpful for payments of GST due to the supply of goods or services or both.
• Is eligible to avail of various benefits under GST Laws.
• It is subject to a more straightforward and lesser number of compliances under GST Laws.
• The procedures for the refund of taxes and registration of taxpayers are standard, while the formats of tax returns are uniform.

Process for GST registration 

It is an online process that needs to be done on the government website gst.gov.in. Every dealer with an annual turnover that exceeds a certain amount prescribed by the state has to register for GST.

·         Aadhar authentication is mandatory.

·         One must first register on the GST portal by clicking the Registration -New Registration tab.

·         Next, select the taxpayer type

·         Select state and district

·         Name and PAN of the business.

·         Enter your email id and mobile number and enter the OTP received.

·         Note down the TRN and fill in part B within 15 days.

·         Enter the trade name of the business

After all the details are filled, you need to go to the verification page and tick on the declaration. On submission, you get an ARN, and you can keep checking the status until it is processed and you successfully register for GST.

Documents required for GST registration:

·         Photographs

·         Constitution of the taxpayer

·         Proof of the place of business

·         Bank account details

·         Verification and Aadhaar authentication

Probable questions to ask your tax consultant before GST registration

Get to know from your consultant the six-tier GST rates, SGST, CGST, and IGST, about GST registration limits, exemptions, and other benefits.

Hiring a consultant for the GST registration process:

GST is one of a business's essential obligations towards the Government, and organizations cannot afford to go wrong with it. Knowing the different tax slabs, knowing the exemptions, understanding the different GST categories that cover businesses interstate, intra-state, and overseas, and filing various GST reports, and returns all require experience. Legalo consultants are well versed with the latest laws of the land and requirements and can help with timely GST submission. Legalo can be trusted as regards your data and working under the highest ethics for efficient GST return filing services.

For GST services visit us here – GST registration for proprietorship.

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