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Published on:

April 24, 2025

Alankar Mishra

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Explore GST

Basics of GST

GST Registration for Partnership Firm- Check Documents Required

For partnership firms operating in India, GST registration is compulsory if the annual turnover exceeds the prescribed limit. This is a legal requirement which also helps increase your firm’s reputation with clients, vendors, and investors. Nevertheless, some small and medium-sized enterprise owners face difficulties with the documentation and procedure around GST registration. In this article, we explain everything about GST registration for partnership firms, including the eligibility criteria, the application process, and all the necessary documents.

What Is GST and Why Is It Important for Partnership Firms?

Goods and Services Tax in India (GST) is a tax imposed in a particular location and accounts for goods and services supplied within the country. It was implemented in July 2017 and aimed at replacing various indirect taxes such as value-added tax (VAT), service tax, excise duties, and others, thereby making the system simple.

A partnership firm may obtain a GST registration for:

Maintaining proper records of business transactions to comply with laws.

Using the Input Tax Credit (ITC).

Creating a business presence in multiple states without complex regulations.

Building brand credibility in a B2B environment.

Sole proprietorship firms benefit from registration, but irrespective of turnover, GST registration enhances the company image in e-commerce, exports, and even business-to-business dealings.

GST Registration Threshold for Partnership Firms

As of 2025, the GST registration limit for partnership firms is based on the type of supply:

Goods: ₹40 lakhs turnover (₹20 lakhs for special category states).

Services: ₹20 lakhs turnover (₹10 lakhs for special category states).

If your firm exceeds these limits or deals in interstate supply, e-commerce, or operates under a reverse charge mechanism, GST registration becomes compulsory.

Types of GST Registration for Partnership Firms

Depending on the nature and size of your business, you can register under:

Regular GST Registration: for businesses crossing the threshold.

Voluntary GST Registration: even if the turnover is below the threshold.

Composition Scheme: for firms with turnover up to ₹1.5 crore (₹75 lakhs in special category states), offering simplified tax compliance with a flat rate.

Non-Resident Taxable Person – applicable for firms operating temporarily in India.

Benefits of GST Registration for Partnership Firms

GST registration is more than a compliance formality. It brings several strategic and operational benefits for your partnership firm:

Input Tax Credit: You can claim GST paid on purchases and reduce your overall tax liability.

Business Expansion: Operate legally across multiple states with a single registration.

Better Credibility: Many large clients and government tenders require GSTIN.

Ease of Compliance: Centralised system for returns, invoicing, and payments.

Mandatory for E-commerce Sellers: Platforms like Amazon and Flipkart require GST registration.

Documents Required for GST Registration of a Partnership Firm

Here is the complete list of documents you’ll need while registering a partnership firm under GST in India:

1. Partnership Deed

A scanned copy of the partnership deed signed by all partners.

It should mention the firm name, address, nature of business, and partner details.

2. PAN Card of the Partnership Firm

GST is linked to PAN, so a valid PAN card in the name of the partnership firm is mandatory.

3. PAN and Aadhaar Cards of Partners

PAN card and Aadhaar card of all partners, especially the authorised signatory partner.

Aadhaar OTP verification is mandatory during registration.

4. Photography by Partners

A recent passport-size photograph of all partners in JPEG format.

5. Address Proof of Principal Place of Business

Depending on the nature of the property, provide:

Ownership proof (property tax receipt or electricity bill).

Rent/lease agreement, if rented.

Consent letter/NOC from the owner if using someone else’s premises.

6. Bank Account Details

Scanned copy of the first page of the passbook, cancelled cheque or bank statement with IFSC and firm name.

7. Authorisation Letter

If a partner is authorised to sign and file GST returns on behalf of the firm, an authorisation letter signed by all partners is required.

8. Business Proof (Optional)

Business registration certificate, shop establishment license, MSME registration, or any other relevant trade license (if applicable).

How to Apply for GST Registration for a Partnership Firm (Step-by-Step Process)

Here is a step-by-step guide to registering your partnership firm under GST:

Step 1: Visit the GST Portal

Go to the official GST portal and click on ‘Register Now’ under the ‘Taxpayers’ tab.

Step 2: Fill Part-A of GST REG-01

Enter PAN of the partnership firm.

Select a state and a district.

Provide the legal name and contact details of the firm.

Verify with OTP (linked to the Aadhaar of the authorised signatory).

Upon validation, you’ll receive a Temporary Reference Number (TRN).

Step 3: Fill out Part B of the Form

Using the TRN, log in and proceed to fill Part B of GST REG-01, uploading the required documents listed earlier.

Step 4: Verification and Submission

Verify using DSC (Digital Signature Certificate) or EVC (Electronic Verification Code) based on your firm’s setup.

Submit the application and wait for the ARN (Application Reference Number).

Step 5: GST Officer Review

The GST officer may verify your documents and may ask for clarification or physical verification of premises.

Step 6: GSTIN Issued

If everything is found correct, you will receive your GST Certificate and a unique GSTIN (Goods and Services Tax Identification Number) on your registered email.

Common Mistakes to Avoid During GST Registration

While the process is online and streamlined, avoid these common mistakes that may delay your GST approval:

Mismatched names between PAN and Aadhaar.

Incorrect selection of business structure (e.g., individual instead of partnership).

Uploading low-quality or incorrect documents.

Skipping the authorisation letter for the authorised signatory.

Incomplete address proof or rent agreement.

Make sure all documents are clear, updated, and legible to avoid rejection.

After Registration: What Should Your Partnership Firm Do?

Once you receive your GSTIN, here’s what your firm must do:

Display the GST Certificate at the place of business.

Mention GSTIN on all invoices and business correspondence.

File monthly or quarterly GST returns (GSTR-1, GSTR-3B).

Maintain proper records of input and output tax.

Renew DSC (if applicable) and ensure timely return filing to avoid penalties.

Penalty for Non-Registration

If a partnership firm fails to register under GST despite being liable, heavy penalties apply:

₹10,000 or the amount of tax evaded (whichever is higher).

Loss of input tax credit benefit.

Legal action and seizure of goods in case of fraud.

Voluntary registration can also be cancelled if not used actively or if returns are not filed on time.

Can Partnership Firms Opt for the GST Composition Scheme?

Yes. If your partnership firm’s annual turnover is under ₹1.5 crore, you can opt for the Composition Scheme to simplify compliance. However, firms under this scheme:

Cannot claim input tax credit.

Must pay tax at a reduced rate (1% to 6%) depending on the type of business.

Cannot issue tax invoices, only a bill of supply.

Cannot sell outside the state.

You need to file the CMP-02 form to opt for this scheme before the beginning of the financial year.

Conclusion

Having a GST registration for your partnership firm will spruce up your documentation and offer new business opportunities to explore. If you deal in goods, services or even operate at an interstate level, having timely registration offers legal compliance, financial credibility, and a plethora of business operational benefits. If the process is followed correctly and the documents are kept ready, the partnership firm can achieve GST compliance hassle-free. Your business should be maintaining clean records and, if need be, hiring a tax professional because once you’re in the system, that’s the motto – consistency is everything.

FAQs

1. Can a partnership firm opt for the Composition Scheme under GST?

Indeed, partnership firms with total sales of up to ₹1.5 crores are also eligible for the Composition Scheme, which offers lower tax rates with simplified returns. However, they also cannot claim input tax credit or issue tax invoices.

2. What is the penalty for not registering a partnership firm under GST?

If a partnership firm is required to register but fails to do so, it may face a penalty of ₹10,000 or 100% of the tax due, whichever is higher. Additionally, the firm loses eligibility for input tax credit.

3. Do I need a Digital Signature Certificate (DSC) for GST registration of a partnership firm?

Yes, if the authorised signatory of the partnership firm is a non-Aadhaar verified user, then a DSC (Class 2 or Class 3) is required to digitally sign the GST application.

4. Can I use my residential address for GST registration of my partnership firm?

Yes, you can use a residential address as the place of business. Just ensure you provide valid address proof and, if needed, a No Objection Certificate (NOC) from the property owner.

5. Is a separate GSTIN needed for each state if the firm operates in multiple states?

Yes, if your partnership firm operates in more than one state, you must obtain a separate GST registration (GSTIN) for each state where the firm is conducting business.

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