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GST · Registration & returnsGST registration for a proprietorship: documents and application process
Starting a shop, trading business or service as a sole proprietor? GST registration is mandatory beyond the turnover threshold – and often needed earlier to sell online or to businesses. Here is the threshold, the documents, the REG-01 process and how to avoid queries and rejections.
A sole proprietorship is the simplest business form – the owner and the business share one PAN. For GST, the registration is taken on the proprietor's PAN, with a trade name if desired. Each State where you have a place of business needs a separate registration.
When registration is compulsory
| Situation | Registration |
|---|---|
| Aggregate turnover above ₹40 lakh (only goods, normal States) | Mandatory |
| Aggregate turnover above ₹20 lakh (services or goods + services) | Mandatory |
| Inter-State supply of goods | Mandatory regardless of turnover |
| Selling goods through e-commerce operators | Mandatory (subject to the intra-State relief) |
| Liable to pay tax under reverse charge | Mandatory |
| Casual taxable person / non-resident taxable person | Mandatory |
"Aggregate turnover" means the all-India turnover of the PAN, including exempt supplies and exports, excluding GST. Many businesses register voluntarily below the threshold because business customers want to claim input tax credit.
Documents for a proprietor
| Document | Notes |
|---|---|
| PAN of proprietor | Name must match Aadhaar |
| Aadhaar of proprietor | Mobile linked for OTP |
| Photograph | Recent, clear |
| Address proof of principal place of business | Owned: electricity bill / property tax receipt; Rented: rent agreement + electricity bill; Relative's property: consent letter + owner's ID + bill |
| Bank details | Cancelled cheque / passbook / statement (can be added later) |
| Business details | Nature of business, HSN/SAC codes of main goods/services, date of commencement |
Step-by-step process
- Part A of REG-01 on gst.gov.in – PAN, mobile, email, State. Verify OTPs; get a Temporary Reference Number (TRN).
- Part B – business details, promoter details, place of business, goods and services, bank, State-specific information. Upload documents.
- Aadhaar authentication – opt in; an authentication link is sent to the proprietor's mobile/email. Where the system selects you, biometric authentication and photo capture at a GST Suvidha Kendra (GSK) may be needed – book an appointment.
- Verification and submission with EVC (Aadhaar OTP) or DSC.
- ARN is generated; track status.
- Officer review – if satisfied, the certificate (REG-06) is issued; if not, a query in REG-03 is raised.
From 1 November 2026 new applications use a revised REG-01 with online validation of PAN–Aadhaar linking and a fixed list of premises types – see GST changes from 1 November 2026.
Responding to REG-03
Common queries: unclear address proof, mismatch in names, missing consent letter, photo of premises, or rent agreement not stamped. Reply in REG-04 within 7 working days with corrected documents. If no reply, the application is rejected in REG-05; you can apply again.
Worked example
Example: Ravi starts a mobile accessories shop in Rohini Sector 7 in a rented shop, expecting turnover of ₹28 lakh in the first year, and plans to buy from wholesalers in Gaffar Market (Karol Bagh).
- Turnover below ₹40 lakh (goods) – registration not mandatory.
- But his business buyers (repair shops) want GST invoices for ITC, and he wants to sell on an e-commerce platform later.
- He registers voluntarily: PAN, Aadhaar, rent agreement with the landlord's NOC, electricity bill in the landlord's name, cancelled cheque of a current account in "Ravi Mobile Accessories".
- Registration arrives in 7 working days. He now must file GSTR-1 and GSTR-3B monthly or quarterly (QRMP) even if sales are low.
Alternative: he could opt for the composition scheme (1% tax, no ITC, bill of supply) – see composition vs regular.
After registration
- Display the GSTIN and certificate at the place of business.
- Show the GSTIN on the signboard and invoices.
- Add bank account (if not added) within the time allowed.
- Start filing returns from the effective date – even nil returns.
- Issue tax invoices with mandatory particulars – see GST invoice rules.
Common mistakes
- Using a home address without the owner's consent letter.
- Name mismatch between PAN and Aadhaar.
- Choosing wrong HSN/SAC codes or nature of business.
- Not responding to REG-03 in 7 working days.
- Taking registration and then not filing nil returns – leads to late fees and cancellation.
Key takeaway
A proprietor registers on their own PAN with Aadhaar authentication and address proof. Register when turnover crosses ₹40 lakh (goods) or ₹20 lakh (services), or earlier if you sell inter-State, online or to businesses. Our GST registration service prepares documents and handles REG-03 queries for businesses across Delhi.
Official references
Provisions discussed (summaries in our Law Library):
- CGST Act, 2017 – Section 22: Persons liable for registration
- CGST Act, 2017 – Section 25: Procedure for registration
Official sources to verify the current text, notifications and circulars:
Frequently asked questions
What is the GST registration threshold for a proprietor?
Aggregate turnover above ₹40 lakh for those supplying only goods (in most States, including Delhi) and ₹20 lakh for services or mixed supplies. Lower limits apply in some special category States.
How long does GST registration take?
Typically 7 working days after a complete application with Aadhaar authentication. If physical verification or biometric authentication is required, it can take up to 30 days.
Can I register GST at my home address?
Yes. A residential address can be the principal place of business if you carry on business from there. Provide ownership proof or a rent agreement and electricity bill, and a consent letter if the property belongs to a relative.
Is a separate bank account needed for GST registration?
Bank details can be added after registration, but it is better to have a current account in the business name. Bank account details must be furnished within the time allowed after registration.
Is GST registration needed for selling on Amazon or Flipkart?
Sellers of goods through e-commerce operators are generally required to register irrespective of turnover, but intra-State sellers below the threshold can use the composition/exemption route notified since October 2023, subject to conditions.
Can a proprietor have two trade names?
A single GSTIN carries one trade name per State registration, though additional places of business can operate under the same registration. Businesses in different States need separate registrations.
Is GST registration transferable on sale of business?
No. The new owner takes fresh registration; ITC can be transferred through ITC-02 if liabilities are transferred.
What is the registration fee?
There is no government fee for GST registration.
This article is general information on the law as on 10 November 2026, written for educational purposes. It is not professional advice for your case. Section numbers under the Income-tax Act, 2025 should be confirmed with the official section mapping on the Income Tax Department website before use in filings.
Have a tax, GST or business question?
Call, WhatsApp or email CA Dilbagh Singh and team, from Delhi, anywhere in India or abroad.