What Is the Legal Ownership Document in GST?

When opting for registration under the Goods and Services Tax (GST) Act, individuals must provide documents confirming their identity, address and legal ownership. This ensures a smoother start for the business. The legal ownership documents in the GST regime explicitly states the legal rights of an individual or group over an asset. These are a set of documents that are deemed to be relevant throughout the GST registration procedure.

Keep reading to learn more about GST registrants and the various types of GST registrations.

Who Should Register for GST?

The GST registration is compulsory for all businesses that supply services exceeding an annual aggregate turnover of ₹40 lakhs. For special category states, this minimum GST registration threshold limit is lower (₹20 lakhs for goods and ₹10 lakhs for services).

Similarly, if you own a business that manages to sell goods worth more than ₹40 lakhs per year then your business must undergo the GST registration procedure. Again, if your goods-supplying venture is in Northeast India then this threshold amount drops to ₹20 lakhs.

Category of GST Registration

In India, there are various categories or types of GST registration, depending on the nature and turnover of the business. Business owners must choose the right category based on the nature of their business activities. These are the various GST registration categories:

• Regular GST Registration

Regular GST registration is the most common and is designed for each business whose aggregate turnover crosses the maximum range declared by the Indian Government. These include e-commerce operators, traders, large-scale or mid-scale service providers, etc.

• Composition Scheme Registration

A composition scheme is carved out for small businesses that manage an annual turnover of up to a certain limit. Here, the maximum limit is ₹1.5 crores for goods suppliers and ₹50 lakhs for service providers. You must note that although businesses under this scheme are allowed a lower tax rate, they cannot opt for Input Tax Credit (ITC).

• Casual Taxable Person Registration

Individuals who engage in temporary business activities like trade fairs, exhibitions and so on, must avail the casual registration. These people do not have any fixed place of business and are solely bothered with occasional transactions within a taxable territory. In addition, non-resident Indian taxpayers who temporarily participate in the supply of goods and services need to apply for this kind of GST registration.

• Non-Resident Taxable Person Registration

It is an exclusive arrangement to provide NRIs with a temporary right to run business operations in India. Its validity is for only 90 days or a period of supply, whichever is earlier. This type of registration does not require the concerned party to hold a permanent address in India.

• Input Service Distributor (ISD) Registration

Businesses that hold several centres of operation and those who wish to distribute the ITC uniformly, have to register as Input Service Distributors (ISDs).

• GST TDS Deductor

There are several designated local authorities, government associations and even individuals who are required to charge Tax at Source (TDS) while settling invoices of their suppliers. They must register themselves under the GST Act as GST TDS Deductors.

• E-commerce Operator Registration

All e-commerce operators listed in India must register themselves under GST with this domain (irrespective of their turnover).

• OIDAR (Online Information Database Access and Retrieval) Service Provider

The OIDAR registration is meant for a provider of online information and database access or retrieval operations from overseas to an Indian citizen.

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What Are the Main Documents Required for GST Registration?

As far as the legal ownership document in GST is concerned, these are the main papers that you need to upload on the unified portal along with the GST registration application form:

• PAN card
• Proof of business registration in its country of origin
• Business address proof (not applicable for temporary registration)
• Proof of identity of the principal owner (can be their voter identity card/driving license details)
• Photographs of the authorized individual
• Board Resolution
• Address proof of the concerned individual in charge
• Bank account details

Bank account statements are asked to keep a record of your bank details. You can alternatively submit a cancelled cheque or any page of your bank passbook showing the important details in case you don’t wish to upload pages of bank statements.

Similarly, proof of address documents can be property tax receipts, municipal khata copies or any type of utility bill such as gas or electricity bills.

Note: GST registration is mandatory for all types of e-commerce business operations in India irrespective of the turnover. 

In addition, the following documents may be required in some cases:

• Ownership deed/document (only for owned property)
• Lease Agreement/Rent Agreement (for leased/rented property)
• Consent letter/NOC from the owner (for consent arrangement or shared property) 

Here is a table outlining the legal documents required for GST registration based on types of business ownership:

What Are the Different Categories of Possession of Business Premises?

The following natures of possession of business premises are the most common across India:

• Own Premises

In this case, the premises are held and controlled outright by a single business entity.

• For Rented or Leased Premises

Here the premises have been taken on lease by the business entity from a third-party organisation/individual.

• Shared Premises

Multiple businesses or entities share the workplace. All the activities executed here relate to official purposes.

• All Other Cases

In addition to the above types, there are government-provided premises and owned residence. The first situation occurs when the government allows a registered taxpayer to resume commercial activities on a leased estate. In the second case, business operations take place from the proprietor’s or partner’s own residential address.

Conclusion

By properly preparing and submitting legal ownership documents in the GST regime, your business can gain unprecedented advantages in the long term. To smoothly register under the GST Act, you have to ensure all the documents are updated and attached to the right submission form.

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