GST Registration for Partnership Firm – Threshold, Documents & Process

Starting a new partnership firm in India is an exciting venture. But before you can fully focus on your business goals, navigating the legal and tax compliance landscape is crucial. One of the first and most important steps is Goods and Services Tax (GST) registration. For any new venture, Launching Your Startup Right – Mastering GST Registration in India is a foundational requirement. This guide will serve as your complete roadmap to understanding the GST registration for partnership firm requirements in India. We’ll break down everything from the mandatory turnover thresholds to the required documents and the detailed online application process, ensuring you can complete your registration smoothly and avoid any compliance hurdles.

Understanding the GST Threshold Limit for Partnership Firm India

One of the most common questions for new business owners is whether they need to register for GST immediately. The answer is: it depends on your annual aggregate turnover. GST registration is not mandatory for every business from day one. The government has set specific turnover limits, and once your business crosses these thresholds, registration becomes a legal requirement. Understanding these limits is the first step in ensuring your firm stays compliant with Indian tax laws.

Turnover-Based Thresholds

The GST threshold is not the same across all states in India. It varies based on whether your firm operates in a “Normal State” or a “Special Category State.”

For Normal States: If your partnership firm is exclusively involved in the supply of goods, the threshold for mandatory GST registration is an annual aggregate turnover of ₹40 lakhs. However, if your firm is involved in the supply of services or a mix of both goods and services, the threshold is lower, at ₹20 lakhs.
For Special Category States: For businesses operating in certain states, the thresholds are lower to account for their economic conditions. These states include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand. In these states, the threshold is ₹20 lakhs for firms dealing exclusively in goods and ₹10 lakhs for those dealing in services or a mix of both.

Mandatory GST Registration Scenarios (Irrespective of Turnover)

While the turnover thresholds cover most businesses, certain types of business activities require mandatory GST registration, regardless of whether they meet the turnover limit. It is critical to know these exceptions to avoid non-compliance penalties. Your partnership firm must register for GST if it:

Makes any inter-state taxable supply of goods or services (e.g., selling from Maharashtra to a customer in Karnataka).
Operates as a Casual Taxable Person (e.g., setting up a temporary stall at a trade fair in another state).
Is required to pay tax under the Reverse Charge Mechanism (RCM).
Is an e-commerce aggregator or supplies goods/services through one (e.g., selling products on Amazon or Flipkart).
Functions as an Input Service Distributor (ISD).
Is involved in supplying online information and database access or retrieval (OIDAR) services from a place outside India to a person in India.

Complete Checklist: GST Registration Documents for Partnership India

Being prepared with the right documents is the key to a smooth and quick registration process. Before you begin the online application, gather all the necessary paperwork to avoid delays. The partnership firm GST registration requirements India are specific and require documents for both the firm itself and for all the partners. Having clear, scanned copies ready will make the online submission process much more efficient.

Documents for the Partnership Firm

These documents establish the legal identity and operational details of your firm.

PAN Card: A clear, scanned copy of the partnership firm’s PAN card is the primary identity document. If your firm doesn’t have one yet, you can follow our guide on the Partnership Firm PAN Card Apply Online – Step-by-Step Process. The business name on the PAN must exactly match the name in the partnership deed.
Partnership Deed: You will need a scanned copy of the registered partnership deed. This legal document outlines the terms of the partnership, profit/loss sharing ratios, and the nature of the business.
Proof of Principal Place of Business: This verifies your official business address.
- If you own the property: The latest property tax receipt, a municipal khata copy, or a recent electricity bill will suffice.
- If the property is rented/leased: A copy of the valid rent or lease agreement is required. Along with this, you must submit a No Objection Certificate (NOC) from the property owner, stating they have no objection to you operating your business from their premises. A copy of the owner’s latest electricity bill or property tax receipt is also needed.
Bank Account Details: A scanned copy of a cancelled cheque showing the firm’s name, account number, and IFSC code is required. Alternatively, you can upload the first page of the firm’s bank passbook or a recent bank statement.

Documents for All Partners (including Authorized Signatory)

The GST department also needs to verify the identity and address of all individuals involved in the partnership.

PAN Card: A scanned copy of each partner’s PAN card.
Aadhaar Card: A scanned copy of each partner’s Aadhaar card.
Photograph: A recent passport-sized photograph of every partner, including the authorized signatory. The photo should be in JPEG format and the file size must be less than 100 KB.
Proof of Authorized Signatory: A partnership firm must authorize one partner to sign and submit documents on its behalf. A copy of the Board Resolution or an authorization letter, signed by all other partners, appointing one partner as the authorized signatory is mandatory.
Digital Signature Certificate (DSC): A valid Class 2 or Class 3 Digital Signature Certificate (DSC) of the authorized signatory is absolutely essential. The final application for a partnership firm must be submitted using a DSC.

The Step-by-Step GST Registration Process for Partnership Firm India

Once you have all your documents ready, you can begin the online application. The entire GST registration process for partnership firm India is completed through the official government portal. Following these steps for partnership firm registration GST India carefully will help ensure your application is processed without any issues.

You can start the process on the Official GST Portal.

Step 1: Generate a Temporary Reference Number (TRN)

The first step is to create a temporary login to start filling out the application.

Navigate to the official GST Portal and click on Services > Registration > New Registration.
You will see Part-A of the Form GST REG-01. In the “I am a” dropdown, select “Taxpayer.” Then, enter the firm’s legal name (exactly as it appears on the PAN), the firm’s PAN, your official email address, and mobile number.
The portal will send separate One-Time Passwords (OTPs) to your mobile number and email address for verification. Enter these OTPs to proceed.
Upon successful verification, a Temporary Reference Number (TRN) will be generated and sent to you via email and SMS. Note this down carefully, as you will need it for the next step.

Step 2: Complete Part-B of the Application

Now you will use the TRN to log in and complete the main application form.

Return to the GST Portal homepage and go to Services > Registration > New Registration. This time, select the “Temporary Reference Number (TRN)” option. Enter your TRN and the captcha, and proceed. You’ll receive another OTP on your registered mobile/email to log in.
You will now see Part-B of the application, which has several tabs. You must fill out each one accurately:
- Business Details: Enter your firm’s trade name (if different from the legal name), select ‘Partnership’ as the constitution of business, and provide other relevant details.
- Promoters/Partners: Here, you need to add the personal details, address, and photographs of all partners.
- Authorized Signatory: Designate one of the partners as the authorized signatory and upload the authorization proof.
- Principal Place of Business: Provide the complete address of your main office and upload the required proof of address document (rent agreement/electricity bill).
- Details of Goods and Services: You must provide the HSN codes for the top 5 goods you plan to sell or the SAC codes for the top 5 services you will provide.
- Bank Accounts: Add the partnership firm’s official bank account number, IFSC code, and upload the proof (cancelled cheque/bank statement).
- State Specific Information: Fill this in only if it is applicable to your business.

Step 3: Upload Documents and Submit for Verification

This is where you upload all the scanned documents you prepared earlier.

As you fill out each section in Part-B, the portal will prompt you to upload the corresponding supporting documents. For example, in the “Principal Place of Business” tab, you will upload the proof of address. In the “Promoters/Partners” tab, you will upload photos and identity proofs.
After filling in all the details and uploading all the required documents, navigate to the Verification tab.
Check the declaration box and submit the application using the Digital Signature Certificate (DSC) of the designated authorized signatory. This is a mandatory step for partnership firms.

Step 4: ARN Generation and Final Approval

Once submitted, your application enters the verification stage.

Upon successful submission, an Application Reference Number (ARN) is generated and sent to your registered email and mobile number. You can use this ARN to track the status of your application on the GST portal.
A designated GST officer will now review your application and the uploaded documents. If all the information is correct and the documents are in order, your GST registration certificate (Form GST REG-06) containing your unique GSTIN will be approved and issued, typically within 3 to 7 working days.
If the officer finds any discrepancies, they may issue a notice asking for clarification or additional documents. You must respond to this notice within the specified time to avoid rejection of your application.

Conclusion

Successfully completing the GST registration for your partnership firm is a fundamental step towards building a compliant and credible business in India. By understanding the threshold, preparing your documents meticulously, and carefully following the online process, you can secure your GSTIN without any unnecessary hassle. This registration not only ensures you are legally compliant but also unlocks key benefits like the ability to claim Input Tax Credit (ITC) and enables smooth inter-state trade, setting your firm up for sustainable growth. Once registered, the next step is understanding the Income Tax Return Filing for Partnership Firm – ITR Form, Due Date & Checklist.

The process can seem complex, with many details to get right. If you need expert guidance to ensure a seamless and error-free registration, contact TaxRobo today. Our team specializes in simplifying legal and financial compliance for businesses just like yours.

Frequently Asked Questions (FAQs)

1. Is a partnership deed mandatory for GST registration?

Yes, a registered partnership deed is a mandatory document for the GST registration of a partnership firm. It serves as legal proof of the firm’s existence and outlines the roles, responsibilities, and profit-sharing ratios of the partners, which is required by the GST authorities for verification purposes.

2. Can we use a personal bank account for a partnership firm’s GST registration?

No. It is mandatory to have a separate current bank account in the legal name of the partnership firm. The GST portal requires you to provide business bank account details, and all GST-related transactions, including tax payments and refunds, will be processed through this official business account.

3. What is the validity of a GST registration certificate?

A GST registration certificate for a regular taxpayer, including a partnership firm, is valid as long as the business is operational. It does not have an expiry date and remains valid until it is either surrendered by the taxpayer or cancelled by the GST authorities for reasons such as non-compliance.

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

Yes, for partnership firms and Limited Liability Partnerships (LLPs), it is mandatory to submit the GST registration application using a Class 2 or Class 3 Digital Signature Certificate (DSC) of the authorized partner or signatory. Applications submitted without a DSC will not be accepted.

GST Registration for Partnership: Easy Guide & Process