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Do LLP Need to Have GST Registration?

Published on

February 15, 2025

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An LLP is a hybrid corporate business form that combines the benefits of a limited liability corporation with the flexibility of a partnership. Even if the partners decide to quit, the LLP can continue to exist. An LLP can even make contracts and hold property in its own right.

This is due to the fact that it is a distinct legal entity with complete accountability for its assets, allowing partners’ liability to be restricted to their agreed contribution to the LLP. Furthermore, no partner is held liable for the independent or unauthorised activities of other partners, insulating partners from joint culpability resulting from another partner’s illicit business actions or wrongdoing.

The procedure through which firms become subject to the 2017 GST Act is known as GST registration. Continue reading to learn how this regime applies to LLPs that have established themselves in India.

Do All LLPs Need to Have GST Registration?

While not all LLPs are required to join in the GST system, there are various advantages to doing so. Firms that reach a certain yearly turnover criterion, on the other hand, are required to register.

LLPs having annual turnover of more than ₹20 lakhs were initially required to register as taxable entities under the GST Act. The ceiling for LLPs trading in products has been enhanced to ₹40 lakhs as of April 1, 2019. However, the threshold level for LLPs offering services remains at ₹20 lakhs.

Is An LLP Considered a Firm During GST Registration?

The Central Government has announced that Limited Liability Partnerships (LLP) formed under the 2008 Act shall be treated as a partnership or firm under the Goods and Services Tax (GST) system.

A limited liability partnership (LLP) is a partnership in which some or all partners have limited obligations (depending on the jurisdiction). As a result, it has aspects of partnerships and companies. In an LLP, each partner is not responsible or liable for the misbehaviour or carelessness of another partner.

“Limited Liability Partnership” created and registered under the requirements of the Limited Liability Partnership Act, 2008 (6 of 2009) “must also be regarded a partnership firm or a firm.”

GST Registration Process for an LLP: A Quick Overview

  • Create a Current Account: A current account must be created, and the current account number and bank data must be provided in order to receive GST registration.
  • Apply online at ww.gst.gov.in: Apply for a GST number online with the relevant papers (All documents are must be submitted online)
  • Getting Your Application Reference Number (ARN): The GST portal will produce an Application Reference Number (ARN) after a successful application submission. You may use the ARN to track your application status.
  • User ID and Password creation at ww.gst.gov.in: Once your registration has been accepted, create a user id and password on the GST Portal.
  • Get the GST Registration Certificate: The GST Registration Certificate may be downloaded via the GST Portal.

Documents Required for GST Registration for an LLP 

Documents required for the GST registration of a Limited Liability Partnership (LLP)  are as follows – 

  • PAN card of the LLP and its designated partners; 
  • Photographs of the designated partners; 
  • A copy of the LLP’s registration certificate; and 
  • A copy of the designated partners’ identity proof.
  • A copy of the registered office’s address proof;  an electricity bill, a water bill, a landline bill, and so on; 
  • Copy of legal ownership document or municipal khata (in the event of owned properties)
  • Rent agreement and No Objection Certificate (NOC) from the premises’ owner (in case of rented premises). 
  • A copy of the LLP agreement; 
  • A copy of the LLP’s bank statement, a cancelled cheque, or the first page of the passbook; 
  • A copy of the Board’s resolution.

Benefits of GST Registration for an LLP 

  1. Recognition as a legal supplier of products or services.
  2. Ability to claim an input tax credit.
  3. Ability to make unrestricted interstate sales.
  4. Ability to sign up for an e-commerce website.
  5. Competitive advantage over other businesses.

GST Registration Assistance for an LLP

How Can You Get Accountswaale To Help Make Your LLP GST-Compliant? It’s simple.

  • The first step is to contact Accountswaale GST advisors to review your LLP’s GST obligations.
  • Our GST experts will then verify that all of your paperwork and documentation is in place, paving the way for a stress-free GST enrollment process.
  • Our legal professionals will then assist you through the GST registration process and finish it off on the LLP’s behalf, allowing you to get your LLP’s ARN and GSTIN as soon as feasible.
  • The Accountswaale team will also help with any compliance and physical verification concerns that may occur throughout the registration procedure.