GST Registration for Proprietor and HUF: Process, Steps and Key Differences
GST registration is a statutory requirement for businesses crossing the prescribed turnover threshold or engaging in notified activities. Proprietors and Hindu Undivided Families (HUFs) are both eligible for GST registration, but the legal treatment and registration process differ slightly for each.
A sole proprietorship is not a separate legal entity from its owner. For GST purposes, the proprietor and business are treated as one taxable person, and the individual’s PAN is used for registration. In contrast, an HUF is treated as a distinct taxable entity under GST law and must obtain registration using the PAN issued in the name of the HUF. The Karta acts as the authorised signatory but is not personally liable for the HUF’s tax obligations.
GST registration becomes mandatory when aggregate turnover exceeds the prescribed limit, generally ₹40 lakh for goods and ₹20 lakh for services. Registration is also compulsory irrespective of turnover in cases such as inter-state supply, e-commerce sales, or liability under reverse charge.
Steps for GST Registration
1. Visit the GST portal at www.gst.gov.in and click on New Registration
2. Select the appropriate constitution of business, either Proprietorship or HUF, and enter the correct PAN accordingly
3. Verify mobile number and email ID through OTP and generate the Temporary Reference Number (TRN)
4. Log in using the TRN and fill in business details, principal place of business, and nature of supplies
5. Upload required documents such as PAN, Aadhaar, address proof, bank account details, and photographs. For HUFs, upload HUF PAN and Karta’s declaration or proof
6. Submit the application using Aadhaar authentication or digital signature.
7. verification, the GST registration certificate is issued electronically.
Selecting the correct constitution at the time of registration is crucial. Incorrect registration may lead to compliance issues and future disputes with tax authorities
FAQs
1. Can a person have GST registration as both proprietor and HUF?
Yes, as they are treated as separate taxable persons.
2. Which PAN is used for HUF GST registration?
The PAN allotted to the HUF is mandatory.
3. Is GST registration compulsory below the threshold limit?
Yes, in certain cases such as inter-state supply or e-commerce operations.
4. Can GST registration be changed from proprietor to HUF later?
No, a fresh registration is required as both are different entities.
