Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

venkat b. (owner)     03 April 2020

Request clarification


is it allowed to have two propritership firms (of the same person) whereas one is non registered under gst and other is registered under gst as the person intends to do online sale of a new items which requires gst registration (say, amazon). 

The combined aggregate turnover is less than 20.0 lacs only. 


i shall be greatful for your advise. 


 11 Replies

SIVARAMAPRASAD KAPPAGANTU (Retired Manager)     03 April 2020

There is no difference between Proprietorship firm and the Proprietor. That is why PAN card is one and the same for firm and the Proprietor.
1 Like

SHIRISH PAWAR, 7738990900 (Advocate)     03 April 2020

Dear querist,

It is better you register your firms under GST to aviod future complications.



1 Like

venkat b. (owner)     03 April 2020


thank you very much for your kind reply. 

venkat b. (owner)     03 April 2020


thank you very much for your kind reply. 

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

There is no need to register a proprietorship firm anywhere, except GST now. If you are eligible under exempt categories or which not to register. It should not be an issue. but apart from GST there are other regulation that abide you, need to take care of them too. Professional tax, shop & factory establishments act.

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

However you need GST registration if you are meeting with any of the following condition

1.If your annual turnover exceed INR 20 Lac

2. In state Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Himachal Pradesh turnover limit is INR 10 Lac

3. If you sells Goods outside the Registered State

4. If you sells Services outside the Registered State

5. If you are selling OR wants to sell - online via Amazon, Flipkart, etc

6. Importer or Exporter of Goods/Services

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

7. When you are Running mass advertising campaigning on online platforms like Google ad words /Facebook adverts as a freelancer

8. When you want to start franchise business of any big company For Example - Franchise of Track on courier company you will require GST number

9. Every person who is registered under an earlier tax law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too.

10. Agents of a supplier – For Example – VLCC and their brand supplier

11. Casual Taxable Person – For Example - A person who has a place of business in Bangalore supplies taxable consulting services in Pune where he has no place of business would be treated as a casual taxable person in Pune

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

12. Non-Resident taxable person - For Example - When Daniel from USA occasionally supplies goods/services in a territory where GST applies, but he does not have a fixed place of business in India. As per GST, he will be treated as a non-resident taxable person. It is similar to above except the non-resident has no place of business in India

13. When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer – For Example – X business is separating from Y business, X business has GST but Y business don’t. Y business will need a separate GST registration

14. Those paying tax under the reverse charge mechanism – For example – If a vendor who is not registered under GST, supplies goods to a person who is registered under GST, then Reverse Charge would apply. This means that the GST will have to be paid directly by the receiver to the Government instead of the supplier. The registered dealer who has to pay GST under reverse charge has to do self-invoicing for the purchases made. – Deferred till 31.03.2018

15. Input service distributor – For example - The Corporate office of ABC Ltd., is at Bangalore, with its business locations of selling and servicing of goods at Bangalore, Chennai, Mumbai and Kolkata. Software license and maintenance is used at all the locations, but invoice for these services (indicating CGST and SGST) are received at Corporate Office. Since the software is used at all the four locations, the input tax credit of entire services cannot be claimed at Bangalore. The same has to be distributed to all the four locations. For that reason, the Bangalore Corporate office has to act as ISD to distribute the credit

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

16. Person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered taxable person.

T. Kalaiselvan, Advocate (Advocate)     03 April 2020

GST is needed For the Proprietorship Business Registration .

Procedure of Proprietorship Business Formation : -

  • Selection of Firm Name .
  • TAN No. Allotment .
  • MSME Registration .
  • GST Registration .

As, in the Procedure of Proprietorship Formation It’s Mandatory to do GST Registration .

venkat b. (owner)     05 April 2020


thanks a lot for pointwise detailed reply.

with regards.

Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Start a New Discussion Unreplied Threads

LCI Learning Hindu Laws

Popular Discussion

view more »

Post a Suggestion for LCI Team
Post a Legal Query