How to Register GST for HUF: Benefits & Eligibility Criteria

The Hindu Undivided Family (HUF) is a family comprising all individuals hereditarily descended from a common ancestor and consisting of their wives and unmarried daughters. Under Hindu Law, an HUF cannot be created under an agreement, it is formed automatically in a Hindu Family.

When it comes to the HUF GST registration, it is the process by which taxpayers belonging to the HUF get themselves registered under the GST council through the official government-based website of the tax regime.

Keep reading to learn more about this process, its eligibility parameters, paperwork, and more.

Team Digit

What is the GST Registration Procedure for HUF?

Following is the step-by-step registration process by which any member of the Hindu Undivided Family (HUF) can get GST registration:

Step 1: Navigate to the official GST portal online at www.gst.gov.in

Step 2: After this, you have to click on the option that shows ‘Register Now’, which you will see after selecting the button showing ‘Taxpayers’.

Step 3: Then click on the button showing ‘New Registration’.

Step 4: Post that, fill out your details as mentioned below:

After clicking on ‘Taxpayer’ in the drop-down menu, choose your state and district.
Enter the type of your employment.
Provide your PAN card details.
Post your mobile number and email ID in the respective boxes on the next page. Make sure that your email ID and mobile number are active since they will receive OTPs from the website.
Enter the CAPTCHA and then select ‘Proceed’.

Step 5: After clicking ‘Proceed’, you will receive the one-time-password (OTP) on your email ID or mobile number which has to be entered in the respective boxes.

Step 6: Then the following page will display a numeral that will go alongside the name of your Temporary Reference Number (TRN). Make sure that you make a note of this TRN number.

Step 7: After this, go to the official portal of GST once again and click on ‘Register’, under the ‘Taxpayers’ menu.

Step 8: Select the ‘Temporary Reference Number (TRN)’ alongside the case-sensitive CAPTCHA and once again click on the ‘Proceed’ button.

Step 9: Once more you will receive an OTP on your registered email ID or mobile number. Again you have to insert that OTP on the next page and click on ‘Proceed’.

Step 10: On the following page, your GST Registration application will be available where you need to click on the ‘Edit’ option on the right-hand side.

Step 11: Post this, on the next page, you will see 10 different sections where you have to fill out the relevant information and upload the supporting documents.

Step 12: After this, you have to visit the next page that displays ‘Verification’ wherein you have to agree with the declaration. Then, you can conclude the process with the submission of your application form via any of these methods:

Signing Digitally: In this method, you have to insert an OTP to the number registered with UIDAI, the government body which has decent control over all things on Aadhaar.
Electronic Verification Code (EVC): You will receive the EVC code on your registered mobile number.
Digital Signature Certificate (DSC): When it comes to registering companies, the application form has to be submitted by the Digital Signature Certificate (DSC).

Step 15: Once you are done with the aforesaid step, a success notification will be displayed on the screen. Here, you will receive an Application Reference Number (ARN) on your mobile number and email ID registered with the GST council.

Step 16: After this, the GST officer will verify and approve the documents you have uploaded. It can be rejected at times if your documents appear improper to the officers.

Step 17: On approval, the GST registration process for HUF will be completed successfully and the concerned individual will receive the login credentials.

What Is the Eligibility Criteria for GST Registration of HUF?

Any member belonging to the Hindu Undivided Family (HUF) needs to meet the following eligibility parameters for a successful GST Registration:

The Goods and Service Tax (GST) Act of 2017 declares that any business enterprise having a turnover of ₹40 Lakhs or more can register for GST.
Normal taxable individuals or those who offer taxable products or services within a taxable territory should go for GST registration.
Any business organisation supplying products from one state to another can apply for GST registration.
Entities registered under the law of taxation (i.e., Excise, Service Tax, VAT etc.) can get registration under Goods and Service Tax (GST).
Casual taxable individual
Input service distributors and their agents
Non-resident taxable individual
Individuals or organisations providing online information, retrieval services, or acquiring databases from a region outside India to an individual in India.
Individuals providing goods or services through an e-commerce portal wherein the total sales go beyond ₹20 Lakhs may obtain GST registration.

What Are the Documents Required for HUF GST Registration?

Mentioned below are the documents required for the taxpayers of HUF to complete their GST registration online:

Permanent Account Number (PAN) card of the HUF
PAN card of the Karta
Adress proof of business registration
Bank account details
Coloured passport-size photo of owner

What Are the Benefits of GST Registration?

If you are a member of HUF, it is compulsory to opt for GST registration provided your yearly turnover goes beyond the specified limit. Mentioned below are the advantages of GST registration for HUF:

Eases Taxation Services: Goods and Services Tax (GST) comprises a collective number of indirect taxes under one roof. This helps streamline the taxation services in the country, thereby integrating the Indian market.
Brings Higher Transparency: By opting for GST registration, individuals get a comprehensive understanding of the taxes paid and collected. This also results in reduced confusion and manipulation within the tax administration departments.
Facilitates Better Revenue Collection: As many people are following the rules and regulations of GST registration and fulfilling various requirements like filing tax returns timely, avoiding tax evasion prudently, etc., it results in enlarged tax revenue for various central and state government agencies.
Helps in Streamlining Lengthy Taxation Services: GST Registration helps small-scale businesses avoid hefty taxation services. This is because service providers having a turnover of less than ₹20 Lakhs and goods providers having a turnover of less than ₹40 Lakhs are relieved from paying GST.
Brings Consistency in Taxation Procedure: GST Registration provides consistency in the taxation process and enables centralised registration. This helps businesses to file their tax returns quarterly via an online process.
Higher Threshold for Registration: Previously, during the VAT system, any business having a turnover of beyond ₹5 Lakhs was legally responsible for paying VAT in India. Moreover, for service providers, service tax was exempted with a turnover of ₹10 Lakhs or less. Under the GST system, this threshold was increased to ₹20 Lakhs, which exempts many service providers and small traders. Registering under Goods and Service Tax (GST) may help an individual stay away from lengthy taxation issues and opt for many other benefits. When it comes to a member of the Hindu Undivided Family (HUF), they have to consider the above-mentioned things while registering under the GST portal.

FAQs on GST Registration of HUF

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Can a lady be a HUF Karta?

Yes, previously a woman was unable to become a HUF Karta. However, in a landmark case in 2016, the Delhi High Court gave women the permission to become the Karta of a HUF only if that lady is the eldest member of her family.

What are the essential things to remember before GST Registration?

Following are the key things to keep in mind before GST registration:

PAN is compulsory as GST Registration figures are PAN-based.
Individuals must apply for GST within thirty days of becoming eligible for registration.
Casual/non-resident taxable individuals need to apply for GST registration five days before starting business.

Are there any GST registration fees for HUF?

No, up till now you do not have to pay a single penny while registering for GST on the official portal of Goods and Service Tax (GST).

How do I calculate taxes for my HUF with rental and business income and GST registration?

You can calculate taxes for your HUF with rental and business income by using an online income tax calculator. Simply input your necessary details, such as total income and GST registration information, to determine your tax amount accurately.