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Registration and Current Bank account for Non-GST proprietorship

Knowledge resource 1432 views 2 replies

Hi. I want to open a sole proprietorship to sell books on Amazon (which are GST free). To sell under a firm name, I need to register as a proprietorship. However, no bank is ready to open a current account under the firm name without a GST. They say you can bring an MSME certificate as that will do. But in the MSME registration form, they ask for the bank details of the firm.

It is circular. A non-GST proprietorship can't open a current account without an MSME certificate. And without a current account under the name of the firm you can't get an MSME certificate. What is to be done first? I don't understand.  

Replies (2)
Yes. Times are tough for a Sole Proprietorship who doesn't want to register under GST. Bank don't understand and MSME guys want current account.

I will share what I think might help you.
Answer 1 -
Amazon will want a GST registered seller generally. So first step is to take a GST number ( you don't need a bank account for that ).
After that, go to the bank and open a current account with GST certificate.

Answer 2 -
If Amazon is ok with a non-GST seller, then catch hold of a shop and establishment agent who would get that registration for you and you would be able to open the bank account then.

Trust this clarifies and helps.

Regards
CA. Raj Doshi

However, lets say i have a firm where i trade in printed books. Printed books are exempted from GST. I can obviously apply for an online certificate under Shop Establishment but since its a self-generated online certificate, the bank won't accept it. I cannot register under GST since i am exempted and i dont want to incur unnecessary expenses on my firm. I cannot register for MSME or even an EXIM License since it required a current account in the name of firm. What to do ?


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