GST Registration for Sole Proprietorship: Complete Step‑by‑Step Guide (2026)

Turnover thresholds (mandatory registration):

• ₹40 lakh annual turnover for goods (₹20 lakh for special category states: NE states, Himachal Pradesh, Uttarakhand, etc.).
• ₹20 lakh annual turnover for services (₹10 lakh for special category states).

You MUST register even if turnover is below threshold if:

• You make inter‑state supplies (sell to other states).
• You sell via e‑commerce platforms (Amazon, Flipkart, Meesho, etc.).
• You are a casual taxable person (exhibitions, trade fairs).
• You are required to deduct/collect tax at source (TDS/TCS).

A proprietorship does not need separate company registration — documents are personal + business‑address‑linked.

• PAN of the proprietor (same as your income tax PAN).
• Aadhaar card of the proprietor (mandatory for GST e‑KYC).
• Business address proof: rent agreement + NOC from landlord, electricity bill, property tax receipt, or any government‑issued address proof of the shop/office.
• Bank account details: a current account in the name of the sole proprietorship (or clearly in the proprietor's name matching PAN). Upload a cancelled cheque or first page of bank statement.
• Proof of business existence (optional but helpful): trade licence, shop & establishment licence, municipal licence, or GST‑60A (for professionals).

Keep scanned copies (PDF/JPG, under 1 MB) in a folder on your laptop or phone.

The process is 100% online on the official GST portal. Avoid third‑party sites.

1. Open https://www.gst.gov.in
2. Hover over “Services” → click “Registration” → “New Registration”.

You will see the GST REG‑01 form for a Normal Taxpayer — this covers most proprietorships.

Provide basic identification to receive a Temporary Reference Number (TRN).

• Legal name: Your full name as per PAN (proprietorship runs in your name).
• Business name / trade name: Your shop or brand name (e.g., "Sharma Electronics", "Sahil Kitchen Appliances").
• State and district: Choose correctly — this decides your GST jurisdiction.
• PAN: Enter your personal PAN (same as in PAN card).
• Mobile number & email ID: Active, regularly checked contact points.

Click “Proceed” → enter the OTP sent to your mobile and email.

Now build your full GST profile. Go again to Services → Registration → New Registration → click “Resume Application” or “Save Draft” → enter TRN + captcha.

You’ll open the draft GST REG‑01 Part B. Fill section by section:

• Section 1 – Business details (proprietorship specific):
  • Constitution of business: Select “Proprietorship”.
  • Date of commencement of business: When you actually started operations.
  • Date of liability to register: Usually the date you crossed turnover threshold, started inter‑state supply, or began e‑commerce.
  • Reason for registration: Choose appropriate option (e.g., “Exceeding threshold limit”, “Inter‑state supply”, “E‑commerce”).
• Section 2 – Promoter / proprietor: Add your name, PAN, Aadhaar, DOB, mobile, email. Tick “Also as authorised signatory” so details auto‑fill in the next section.

For a proprietorship, you are almost always the authorised signatory.

• Name and signing capacity: Choose “Proprietor”.
• PAN, Aadhaar, mobile, email (same as in promoter section).
• The portal may auto‑fill; just verify and save.

Enter your shop/office address and upload supporting documents.

• Principal place of business: Full address, pin code, and proof of address (rent agreement + NOC, electricity bill, property tax receipt, or any valid government address proof).
• Additional places of business (if any): Godowns, warehouses, branch offices — can be added here.

Important: The address must exactly match your uploaded proof; mismatches cause verification delays.

Declare what your proprietorship sells or provides.

• List your top 5 goods and top 5 services by value.
• For each item, select the correct HSN code (goods) or SAC code (services).
  • If turnover below ₹1.5 crore, 4‑digit HSN is usually sufficient.
  • Above ₹1.5 crore, use 6‑digit HSN/SAC where applicable.

Use the HSN/SAC search tool on the GST portal if unsure about classification.

Bank compliance is simple but critical for a proprietorship.

• Add at least one current account in the name of the proprietorship or in your name (must match PAN).
• Upload a cancelled cheque or bank statement (first page showing name, account number, IFSC code, and bank branch).

For proprietorships, Aadhaar‑based e‑KYC is now standard.

• Enter the Aadhaar number of the authorised signatory (you, as the proprietor).
• Choose authentication method:
  • e‑KYC (OTP): OTP is sent to the mobile number linked with Aadhaar → enter to verify.
  • Biometric: If mandated, you may need to book an appointment at an Aadhaar centre and visit physically.

Most proprietors complete this instantly via OTP on their Aadhaar‑linked mobile.

After verifying all details, click “Verify and Submit”.

You’ll be asked to sign using:

• Digital Signature Certificate (DSC) – rarely needed for proprietors, OR
• E‑Sign (Aadhaar OTP) – recommended for most sole proprietors (simple, no DSC required).

After successful signing:

• The system generates an Application Reference Number (ARN).
• ARN is sent to your registered email and mobile — save it for tracking.

Once submitted, your application goes to the jurisdictional tax officer for verification.

• Track status on GST portal: Services → Registration → Track Application Status, using your ARN.
• Processing time: 3 to 15 working days for most proprietorship applications.

If clarifications are needed: You may receive an office order / notice on the portal. Respond within 7 days by uploading the requested documents.

On approval:

• 15‑digit GSTIN (GST Identification Number) via email/SMS.
• Certificate of Registration (Form GST REG‑06) – downloadable from Services → Registration → Registration Certificate.

Getting GSTIN is just the start — maintain compliance to avoid penalties.

• Display GSTIN on invoices, website, and at your place of business (shop board).
• Issue GST‑compliant invoices showing GSTIN, HSN/SAC, tax rate, place of supply, and tax breakup.
• File regular returns:
  • GSTR‑1 (outward supplies) – monthly/quarterly based on turnover.
  • GSTR‑3B (monthly summary) – by 20th of next month.
  • GSTR‑9 (annual return) – by 31st December of next financial year.
• Maintain books of accounts and records for at least 6 years (invoices, bills, returns).

Consider the Composition Scheme (if eligible): For small proprietors with turnover < ₹1.5 crore, this scheme reduces paperwork and tax burden, but you cannot claim ITC or make inter‑state sales.