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Multiple registrations under GST

In India, any entity having an annual turnover more than the GST exemption limit will have to enroll in Goods & Service Tax. If an entity engaged in business from two or more states, a unique GST number is required for each state. In this article, we will discuss the provisions given in law for multiple GST registration in the same state or different states or the same address.

Recent updates related to GST registration

28th May 2021

The last date for filing an application for revocation of canceled GSTIN falling between 15th April 2021 to 29th June 2021 extended to 30th June 2021.

5th March 2021

The search ARN functionality for registration on the common portal has been enhanced for taxpayers.

31st January 2021

(i) SEZs while applying for GST registration will have to provide the validity period as per the letter of authorisation (LOA).

(ii) Aadhaar authentication has been implemented on the Common portal for existing taxpayers.

31st December 2020

(i) For new registrants who opted for Aadhaar authentication, the authentication would be required only for one Primary Authorized Signatory and one Promoter instead of all.

(ii) Now, GST practitioners can apply cancellation of GST registration in Form GST PMT-06.

Separate GST registration for each state

Any taxpayer operating a business from a place of business situated in a different state shall apply for a separate registration under GST for each respective state. Also, the same PAN can be used for registration in more than one state.

For example, TaxGyata is Hyderabad based company and also rendering services from branches in Noida, Cochin, and Gurugram. In the given case, TaxGyata will have to take a separate GSTIN for each branch.

Now the question arises whether separate GST registration required for business operations in another state when no place of business has been located in that state? The answer is “No”, the requirement to enroll separately in another state comes only if the entity has a place of business in that state.

More than one GST registration in one state

As per section 25 of the CGST Act, a person shall be allowed a single registration in a state. However, multiple registrations may be allowed to the taxpayer within the same state if the following conditions are fulfilled-

  • He must have more than one place of business
  • He shall submit a separate registration application in respect of such place of business.
  • He will not be eligible to pay tax under the composition scheme
  • Every registered unit will be treated as a separate place of business and tax will be levied on supplies made from one unit to another unit.

Accordingly, a taxpayer can opt for separate registrations in a State based on location.

Illustration

Example 1

(Different businesses, same location)

Business 1 – Tax Consultancy Services

Business 2 – Recruitment Services

Location – Head Office

Separate registration not possible as businesses are operating from the same location

Example 2

(Same business, separate locations)

Business 1 – Hotel, Gurgaon, Haryana

Business 2 – Hotel, Rohtak, Haryana

Separate registration possible as businesses are situated at different locations

 

More than one GST registration on same address

There are no specific provisions given in GST law for multiple registrations on the same address. Further, In the matter of M/s Spacelance Office Solutions Pvt. Ltd., GST AAR Kerala held that “there is no prohibition under GST law for obtaining GST registration to a shared office space or virtual office, if the land lord permits such sub leasing as per the agreement. Each “co-working space” is demarcated with different suit number or desk number. As the GST registration is based on PAN, identification of taxpayer is not a difficult thing”.

Documents required for obtaining registration for multiple places of business

Applicant need to upload the soft copy of the following documents on the Common portal while applying GSTIN for each place of business-

(1) PAN card of the applicant

(ii) Aadhaar card of the applicant

(iii) Business address proof of each respective place of business

(iv) Canceled cheque copy/ passbook first-page copy / latest bank statement copy

Transfer of input tax credit in case of multiple registrations in the same state

As per Rule 41A of CGST Rules 2017, accumulated ITC balance from the taxpayer (transferor) electronic credit ledger will be transferred to the newly registered place (transferee) in the following manner-

  • ITC shall be transferred in the ratio of the value of assets held by the transferee on the date of registration.
  • Transferor will furnish Form ITC-02A on the Common portal within 30 days of new registration.
  • Transferee will accept the details filled by the transferor on the Common portal.
  • On acceptance of detail by the transferee, ITC shall be credited to the electronic credit ledger of the transferee.


CA Anand Singh

CA Anand Singh

I am a practising Chartered Accountant with 6 years of experience in Direct and Indirect Taxation, FEMA, Corporate Law and Audit etc.

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