GST Registration for Partnership

GST Registration for Partnership Firms | Process and Guideline

In India, anyone can form a partnership by agreeing to do so in writing or over the phone. This deal says that two or more people will share the profits of a business that is run by all of them or some of them. For Income Tax reasons, partnership companies must show a partnership deed as proof that they exist. This piece talks about the steps a partnership company needs to take to get GST registered.

Individuals, businesses, and companies that buy or sell goods or offer services must register for the Goods and Services Tax (GST) in order to receive the input tax credit.

For partnership companies, the Goods and Services Tax website (www.gst.gov.in) lets them register for GST online. An application is given a Temporary Reference Number (TRN).

Documents required for GST Registration of Partnership Firm:

  • Photos of all Partners
  • PAN Card of all Partners
  • Aadhar Card of all Partners
  • PAN Card of the Partnership Firm
  • Proof of Constitution of Business (Partnership deed)
  • Proof of Principle place of business (Anyone – Electricity Bill/Rent or Lease agreement/Latest Bank Statement – Not less than 2 months old)
  • Letter of Authority in favor of any Partner
  • Once the application is filed, an Application Reference Number (ARN) will be generated to track the status of application
  • Once the application is approved by the Tax Officer, the Certificate of Registration is generated online

Steps for GST registration of Partnership Firm

A business that sells things or services can get the benefits of the input tax credit if they are registered for GST.

You can apply for GST Registration in two ways:

  1. By filling our easy form on the right
  2. Self Registration: By following the step-by-step process.
  • First, go to the Goods and Service Tax (GST) page and log in.
  • Click on “Services,” then “Registration,” and then “New Registration.”
  • Second, fill out the form with information like your state, the name of your business, your PAN, your email address, and your cell phone number. After that, click on “Go.”
  • Next, hit “Proceed” and give the portal the OTP you got on both your phone number and email address to prove them. 
  • After making sure the phone number and email address are correct, you will be given a TRN (Temporary Registration Number) to keep track of your progress.
  • On top of that, upload all the papers listed above that are needed to register a partnership company for GST.
  • Part B of the form has more information that you need to fill out. 
  • An ARN (Application Reference Number) will be sent to you after you send in the form. 

The GST officer will look over your application and papers after you have sent them in.

The GST officer will look over your application and decide whether to accept it or not.

The cop can also ask for more information about papers if they need to.

So, keep an eye on the progress of your application and your emails for changes and replies.

Your GSTIN number and GST registration proof will be sent to you once everything is done.

How to check the status of partnership firm registration?

  1. Visit the GST Portal. 
  2. What Documents a Partnership Firm Needs to Register for GST
  3. Click on “Track Application Status.” Then, go to “Services” and then “Registration Check on the status of your application. 
  4. What Documents a Partnership Firm Needs to Register for GST
  5. Type in the ARN and the code.
  6. Put in the ARN number of the GST registration form and type the CAPTCHA. 
  7. When you click Search, the site will show you the progress of your GST registration application.

What are the types of partnerships?

The various types of partnerships are

General Partnership:

Each partner in this kind of relationship has the power to make choices about how the business is run and managed. One problem is that each partner is responsible for everything the business does, and if the business fails because of one partner’s actions, all of that partner’s personal property can be taken to pay off bills and creditor claims. 

A general partnership is further classified into two types:

1. Partnership at will:

When two or more people form a partnership, they usually agree on how long the partnership will last. A partnership that doesn’t have a set amount of time in which it has to end is called a partnership at will. 

When the time is right, both people in a partnership must agree to end it. When the relationship ends is up to the two people who are in it.

2. Particular partnerships:

Some relationships are only made for a certain business or project that requires short-term work. Once the business goal is reached or the act that the partnership was made for is finished, the partnership will end. 

The partners are free to choose to keep working together, but they don’t have to. If this isn’t the case, though, the partnership stops when the job is done.

Limited Liability Partnership (LLP):

A limited partnership is a type of business group that is like a corporation. Each partner is only responsible for what they decided to put into the business. The personal property of a partner cannot be taken away to pay off the business’s bills. This type of business is governed by the Limited Liability Partnership Act of 2008.

Based on the status of the partnership’s registration:

The Partnership Act doesn’t say that a partnership company has to be registered. Businesses, whether they are listed or not, are legal and can operate.

1. Unregistered Partnership Firm:

When the partners sign an agreement, the business is formed, but it is not yet recognized. The deal says that the Partners can go about their business as usual.

2. Registered Partnership Firm:

The Partnership Firm needs to sign up with the Registrar of Firms (RoF) in charge of the place where the Firm does business. By law, you have to pay a registration fee to RoF along with your application to become a member. This fee was different in each state. Because they have more benefits, registered partnerships are often the best choice.

What happens if a partnership is not registered?

In an inactive partnership, one partner can’t sue another partner in any way. If a partnership company is not recognized, the following things will happen:

  1. It can’t go to court with its claims against the third party.
  2. No one can sue a partner.
  3. Partner in a company that isn’t listed can’t sue the company to get their rights enforced.
  4. Partners in a business that isn’t registered can’t sue each other.
  5. It can’t ask for a change for more than 100 rupees.

What is the minimum number of partners in a firm?

India needs at least two people to form a partnership company and no more than many. For banking reasons, a partnership needs at least ten people.

Conclusion:

For Income Tax reasons, partnership companies need to show proof of presence in the form of a partnership agreement.If a partnership company makes more than 40 lakhs a year, it needs to register for GST. But there are partnership firms that need to be registered even if they don’t make more than a certain amount of money a year. 

If you want to register your partnership company for GST, you need to talk to a lawyer online. Not only does hiring a skilled lawyer online save you time, it also makes your job easier. 

It is important to record the company deed so that it can be used in court. That’s why you should talk to an expert before registering your Partnership property. The process takes a long time.

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