Can a minor get GST registration?

Can a Minor Get GST Registration?

Introduction

The Goods and Services Tax (GST) is a unified indirect tax imposed on the supply of goods and services across India. It was introduced to simplify the tax structure and create a unified market. Businesses and individuals engaged in the supply of goods or services above a certain turnover threshold are required to register under GST. A common question that arises is whether a minor — an individual under the age of 18 — is eligible to obtain GST registration. Understanding the legal framework and implications surrounding this issue is crucial for businesses, legal guardians, and young entrepreneurs exploring business opportunities.

Definition of GST Registration

GST Registration is the process by which a person or business entity becomes legally recognized under the Goods and Services Tax Act, 2017. Once registered, the entity is authorized to collect GST from customers and pass on input tax credits to the buyers. GST registration is mandatory for:

• Businesses with an annual turnover of more than ₹40 lakhs (₹20 lakhs for service providers)
• Inter-state suppliers of goods and services
• E-commerce operators
• Casual taxable persons and non-resident taxable persons

The GST registration process requires the applicant to provide key details such as business name, address, PAN (Permanent Account Number), and bank account details.

Can a Minor Apply for GST Registration?

Under Indian law, a minor (a person under 18 years of age) cannot enter into a valid contract or undertake business independently. The Indian Contract Act, 1872, specifies that minors lack the legal capacity to enter into binding contracts. Since GST registration involves accepting legal liability and adhering to tax obligations, a minor cannot directly register for GST in their name.

However, there are two possible ways in which a minor’s business can operate under GST:

1. Through a Legal Guardian – A minor’s business can be registered under GST if the application is filed and managed by a legal guardian or parent.
2. Business Structure as a Trust or HUF (Hindu Undivided Family) – A minor can be a beneficiary or a member in a business structured as a trust or HUF, with the registration handled by the trustee or head of the family.

Therefore, while a minor cannot directly obtain GST registration, they can engage in business under the supervision and legal responsibility of a guardian or trustee.

Applications of GST Registration for Minors

Although minors cannot directly register for GST, businesses involving minors (through guardians) can benefit from GST registration in several ways:

1. E-Commerce and Online Businesses – If a minor operates a business on e-commerce platforms (like Amazon, Flipkart), GST registration is mandatory. The guardian can register the business on behalf of the minor.
2. Freelancing and Creative Work – A minor earning income through creative work (e.g., YouTube, content creation) may require GST registration to comply with platform rules.
3. Small Businesses – If a minor’s business exceeds the turnover limit, the guardian can file for GST registration and handle tax compliance.
4. Import and Export of Goods/Services – Businesses involved in cross-border trade require GST registration, which can be managed by a guardian or trustee.
5. Participation in Government Tenders – If the business involves government contracts, GST registration becomes necessary for eligibility.

Benefits of GST Registration for Minors

Even though a minor cannot directly apply for GST registration, the benefits of GST registration (managed by a guardian) are significant:

Legitimacy and Credibility – GST registration gives the business legal recognition and enhances its market reputation.
Input Tax Credit (ITC) – Businesses can claim credit for GST paid on purchases, reducing the overall tax burden.
Expansion Opportunities – A GST-registered business can trade across states and reach a wider market.
Compliance with Legal Requirements – E-commerce platforms and government contracts require GST registration.
Access to Financial Services – Registered businesses may find it easier to access loans and other financial services.

Limitations of GST Registration for Minors

There are certain limitations when it comes to GST registration for minors:

No Direct Registration – A minor cannot apply for GST independently; it must be handled by a guardian or trustee.
Legal Responsibility on Guardian – The guardian or trustee is legally responsible for compliance and tax liabilities.
Contractual Limitations – A minor cannot enter into legal contracts, which may limit business activities.
Age-Based Restrictions – Financial institutions and government bodies may impose additional restrictions for businesses involving minors.
Complex Compliance – Filing returns, maintaining records, and adhering to GST rules can be complex for a minor-managed business.

Comparative Table: Minor vs. Adult GST Registration

Legal Basis for GST Registration for Minors

• Indian Contract Act, 1872 – States that a minor cannot enter into a legally binding contract.
• GST Act, 2017 – Does not explicitly allow minors to register for GST but permits businesses managed by guardians or trustees to obtain registration.
• Guardian and Wards Act, 1890 – Allows guardians to represent minors in business matters.

Conclusion

While a minor cannot directly apply for GST registration due to the legal restrictions under the Indian Contract Act, a business involving a minor can still obtain GST registration through a legal guardian or trustee. This arrangement allows the business to enjoy the benefits of GST registration, such as input tax credits, market credibility, and legal compliance. However, the responsibility for compliance, tax filings, and contractual obligations lies with the guardian or trustee. For minors with entrepreneurial aspirations, this setup provides a legal pathway to establish and grow a business under the protective guidance of an adult.

 Frequently Asked Questions (FAQs) About GST Registration for Minors

1. Can a minor apply for GST registration independently?
   No, a minor cannot apply directly for GST registration but can operate a business under a guardian’s registration.

2. Who is responsible for tax compliance if a minor’s business is GST-registered?
   The guardian or trustee is legally responsible for compliance and tax payments.

3. Can a minor-owned e-commerce business get GST registration?
   Yes, but the guardian or trustee must apply for registration and handle tax filings.

4. Is GST registration necessary for a minor’s small business?
   Only if the turnover exceeds the threshold or the business is involved in inter-state trade.

5. Can a minor file GST returns?
   No, GST returns must be filed by the guardian or trustee.

6. Can a minor’s income from YouTube or freelancing require GST registration?
   Yes, if the income exceeds the GST threshold.

7. Can a minor sign a contract for GST registration?
   No, minors cannot legally sign contracts.

8. What happens if the minor’s business fails to comply with GST rules?
   The guardian or trustee will face legal consequences.

9. Can a minor inherit a GST-registered business?
   Yes, but the guardian or trustee will manage the business until the minor reaches adulthood.

10. Is there an age limit for GST registration in India?
    Yes, the applicant must be a legal adult (18 years or older) or represented by a guardian.

For GST Registration https://www.gst.gov.in/

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