GST Registration for Partnership Firm – Threshold, Documents & Process

Starting a partnership firm in India? One of the first crucial steps towards financial compliance is understanding GST. This guide simplifies the entire process for you. Navigating the world of taxation can seem daunting, but a proper GST registration partnership firm is a non-negotiable step for legitimacy and growth. This article provides a complete guide on this process, covering when it becomes mandatory, the exact documents you’ll need, and a detailed breakdown of the step-by-step online application. Timely GST registration is vital for your business’s legality, its ability to claim input tax credit (ITC), and its overall potential to thrive in the competitive Indian market. For any partnership firm GST registration in India, getting this right from the start sets a strong foundation for future success.

Understanding the GST Threshold Limit for Partnership Firms

Before diving into the application process, the first question every new partnership firm must answer is: “Do we need to register for GST?” The answer lies in your business’s “aggregate turnover.” Under GST law, aggregate turnover includes the total value of all taxable supplies, exempt supplies, exports, and inter-state supplies of a person having the same Permanent Account Number (PAN), calculated on an all-India basis. It excludes taxes like CGST, SGST, UTGST, and IGST.

The government has set specific turnover thresholds that mandate GST registration. It’s crucial to know which category your firm falls into, as the limits differ for businesses supplying goods versus those supplying services, and also for firms operating in certain states.

Here is a clear breakdown of the GST threshold limit for partnership firms:

For Supply of Goods: The threshold for GST registration is an aggregate turnover of ₹40 lakhs in a financial year for most states.
For Supply of Services: The threshold is lower, at an aggregate turnover of ₹20 lakhs in a financial year.
Special Category States: For certain states, the thresholds are reduced to encourage compliance and account for their unique economic landscapes. The limit is ₹20 lakhs for the supply of goods and ₹10 lakhs for the supply of services. These states include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand.

However, some business activities make GST registration mandatory regardless of turnover:

Making any inter-state taxable supply (selling goods or services from one state to another).
Businesses operating under the reverse charge mechanism.
E-commerce operators and those selling goods/services through an e-commerce platform.
A Casual Taxable Person or a Non-Resident Taxable Person.
Any business involved in the supply of online information and database access or retrieval (OIDAR) services.

Documents Required for GST Registration of a Partnership Firm

Once you’ve determined that your firm needs to register for GST, the next step is to gather all the necessary paperwork. Keeping these documents scanned and ready will make the online application smooth and quick. The list of documents required for GST registration is specific and must be submitted correctly to avoid application rejection or delays.

Here is a complete checklist broken down for clarity.

For the Partnership Firm

PAN Card of the Partnership Firm: This is the primary identifier for the firm.
Partnership Deed: A scanned copy of the registered or notarized partnership deed is mandatory. This document outlines the rights, duties, and profit-sharing ratios of the partners.
Proof of Principal Place of Business: You need to provide valid proof for your main office or business location.
- For Owned Property: Any recent document like a Property Tax Receipt, Municipal Khata copy, or an Electricity Bill in the name of the firm or a partner.
- For Rented/Leased Property: A copy of the Rent or Lease Agreement, along with a No Objection Certificate (NOC) from the property owner. You must also provide a supporting document in the owner’s name, like their electricity bill or property tax receipt.
Bank Account Details: A scanned copy of a cancelled cheque or the first page of the firm’s bank passbook or statement. This should clearly show the firm’s name, bank account number, branch address, and IFSC code.

For the Partners (including Designated/Authorized Signatory)

PAN Card: Scanned copy of the PAN card of all partners.
Aadhaar Card: Scanned copy of the Aadhaar card of all partners.
Photograph: A recent passport-size photograph of all partners, including the authorized signatory. This must be in JPEG format and the file size should not exceed 100 KB.
Proof of Address: Address proof for all partners, which can be a copy of their Voter ID, Passport, or Driving License.
Authorization Letter: A letter of authorization or a copy of the board resolution signed by all partners, officially appointing one partner as the authorized signatory for all GST-related matters.

How to Register Partnership Firm for GST: A Step-by-Step Guide

The GST registration process for partnership firm is entirely online, making it accessible and efficient. By following the steps on the official government portal, you can complete your application without hassle. Here’s a detailed guide on how to register partnership firm for GST.

Step 1: Access the GST Portal
First, navigate to the official GST portal at https://www.gst.gov.in/. On the homepage, go to Services > Registration > New Registration.

Step 2: Generate TRN (Temporary Reference Number)
You will be directed to Part-A of the GST REG-01 form. Here, you need to fill in basic details:

In the “I am a” dropdown, select Taxpayer.
Select your State and District.
Enter the legal name of the business as mentioned on the PAN card of the firm.
Enter the PAN of the partnership firm.
Provide a valid Email Address and Mobile Number. These will be verified via a One-Time Password (OTP).

After successful OTP verification, you will receive a Temporary Reference Number (TRN) on your registered email and mobile.

Step 3: Complete Part-B of the Application
Using the TRN, log back into the GST portal. Navigate to Services > Registration > New Registration and select the “Temporary Reference Number (TRN)” option. Enter the TRN and the captcha, and proceed after OTP verification. You will now be directed to Part-B of the application, which has several tabs to be filled out:

Business Details: Enter your trade name, select the constitution of business as ‘Partnership’, and provide other details about your business.
Promoters/Partners Tab: Add the details of all partners, including their personal information, address, and photographs.
Authorized Signatory: Designate one partner as the authorized signatory and provide their details.
Principal Place of Business: Enter the full address of your main business premises and upload the corresponding proof of address document.
Details of Goods and Services: Specify the top 5 goods or services your firm will supply. You will need to provide the HSN (Harmonized System of Nomenclature) code for goods or the SAC (Services Accounting Code) for services.
Bank Accounts: Add the details of the firm’s bank account and upload the supporting document (cancelled cheque or bank statement).

Step 4: Upload Documents
In the relevant sections, carefully upload the scanned copies of all the documents mentioned in the checklist above. Ensure they are in the prescribed format (usually PDF or JPEG) and within the specified size limits.

Step 5: Verification and Submission
The final step is to verify the application. For a partnership firm, the application must be submitted using a Digital Signature Certificate (DSC) of the authorized signatory. Alternatively, you can use the EVC (Electronic Verification Code) option, where an OTP is sent to the Aadhaar-registered mobile number of the signatory.

Step 6: ARN Generation and Final Approval
Upon successful submission, an Application Reference Number (ARN) will be generated and sent to your email and mobile. You can use this ARN to track the status of your application. A GST officer will review your application and documents. If everything is in order, your GSTIN will be approved and generated within 3 to 7 working days. If there are any discrepancies, the officer may request clarification or additional documents.

Post-Registration Compliance for Your Partnership Firm

Securing your GST Identification Number (GSTIN) is a significant milestone, but it’s just the beginning of your journey with GST compliance. Once your registration is approved, your partnership firm must adhere to several ongoing requirements to remain legally compliant and avoid penalties.

Display of GSTIN: It is mandatory to display your GST registration certificate at a prominent location within your principal place of business. Additionally, your GSTIN must be mentioned on the name board displayed at the entrance of your business premises.
GST Invoicing: Your firm must start issuing GST-compliant tax invoices for all taxable supplies. These invoices must contain all mandatory fields, including the GSTIN of your firm and the buyer, HSN/SAC codes, applicable tax rates (CGST, SGST, IGST), and other prescribed details.
GST Return Filing: Regular and timely filing of GST returns is the most critical post-registration activity. Partnership firms are typically required to file monthly or quarterly returns like GSTR-1 (for details of outward supplies) and GSTR-3B (a summary return for tax payment). Failing to file returns on time can lead to late fees and interest charges.

Managing GST returns and compliance can be complex. TaxRobo’s expert accounting and TaxRobo GST Service ensure your partnership firm stays compliant, letting you focus on growing your business.

Conclusion

A successful GST registration partnership firm is a foundational step for building a transparent, compliant, and efficient business in India. By understanding the turnover thresholds, carefully preparing all the required documents, and methodically following the online application process, you can secure your GSTIN without any major hurdles. This not only legalizes your operations but also unlocks benefits like the ability to claim input tax credit, which is crucial for managing your business costs effectively.

Feeling overwhelmed? The GST registration partnership firm process doesn’t have to be a headache. Let the experts at TaxRobo handle it for you. Contact us today for a hassle-free registration experience!

Frequently Asked Questions

Q1. Is a Partnership Deed mandatory for GST registration?
A: Yes, a registered or notarized Partnership Deed is a mandatory document. It serves as proof of the firm’s constitution and is required by the GST authorities during verification.

Q2. How long does it take to get a GSTIN for a partnership firm?
A: After successfully submitting the application and all correct documents, it typically takes 3 to 7 working days for the GST officer to approve the application and issue the GST Identification Number (GSTIN).

Q3. Can a partnership firm opt for the GST Composition Scheme?
A: Yes, if the partnership firm’s aggregate turnover is below the prescribed limit (currently ₹1.5 crore for most states), it can opt for the Composition Scheme. This scheme offers a lower, fixed tax rate and simplified compliance.

Q4. Do all partners need to provide their PAN and Aadhaar for the firm’s GST registration?
A: Yes, the PAN and Aadhaar details of all partners are required to be submitted in the GST registration application. The system verifies these details during the process.