How does a proprietorship get GST registration?
A proprietorship gets GST registration on the proprietor’s PAN, through GST REG-01, when turnover crosses the section 22 threshold or section 24 makes a GSTIN compulsory. There is no separate PAN for the firm. The steps that every applicant shares are on the GST registration page.
When does a proprietorship register?
The proprietorship is the owner. Aggregate turnover is the owner’s turnover on that PAN, including every business the same person runs.
- Goods: ₹40 lakh in most states, and ₹20 lakh in special category states.
- Services: ₹20 lakh, or ₹10 lakh in special category states.
- Both goods and services: the service threshold.
- Inter-state goods, reverse charge, and the other section 24 cases: registration even below the line.
A shop and establishment licence, or a trade name, does not replace the GSTIN. Those are different registrations.
Which papers are different from a company?
The portal asks for the person and the place. A proprietorship has no incorporation certificate and no board resolution.
- The proprietor’s PAN and Aadhaar, and a photograph
- Proof of the place of business: ownership or rent papers, a utility bill not older than two months, and a no-objection from the owner if the place is rented
- Bank proof in the proprietor’s name, or in the trade name where the account is so styled
The certificate that comes back is GST REG-06. The GSTIN is 15 characters and contains that PAN.
What does the proprietor file after the GSTIN?
A regular proprietor files GSTR-1 and GSTR-3B on the dates on the GST return page. A proprietor who opts for the composition scheme files CMP-08 and GSTR-4 instead.
Income tax stays personal. Business income outside the presumptive sections goes in ITR-3. Presumptive income under section 44AD or 44ADA can go in ITR-4. The proprietorship does not file the company return.
Frequently asked questions
Four questions cover the PAN, the threshold, the income-tax return, and composition.
Does a proprietorship have its own PAN for GST?
No. The GSTIN is issued on the proprietor’s PAN. A second proprietorship of the same person is the same PAN, and the turnover of both counts together.
Is the turnover limit lower for a proprietor?
No. Goods are ₹40 lakh in most states and ₹20 lakh in special category states. Services are ₹20 lakh, or ₹10 lakh in special category states. A person who supplies both stays on the service threshold.
Which income-tax return follows?
The proprietor’s own return. Business income that is not under the presumptive scheme goes in ITR-3. Presumptive income under section 44AD or 44ADA can go in ITR-4. The proprietorship does not file ITR-6.
Can the proprietor choose composition?
Yes, when the turnover and the other conditions of the composition scheme are met. The choice is made in the registration form or in CMP-02 before the financial year. It is not automatic.
Sources
Registration is sections 22 and 25 of the CGST Act. The proprietor’s income-tax return is a separate filing.