Share :
Multiple registrations under GST

Join TaxGyata WhatsApp Group or Telegram Group for Latest Updates on Income Tax, GST, Company Law and Finance.


In India, every person is legally bound to register in the Goods and Services Tax regime if,-

  • he is engaged in the supply of goods or services, and the aggregate turnover of his supplies exceeds the GST exemption limit.
  • he is covered under the compulsory GST registration criteria. 

If an entity is 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.

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

Now the question arises whether separate GST registration is 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

Applicants 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.

Recent updates related to GST registration

 

November 2021

1. Functionality has been introduced on the GST portal for taxpayers to withdraw their application for cancellation of registration (Form REG-16) provided no action has been initiated by the tax officer against their application.

2. Now the effective date of suspension of a taxpayer is also displayed on the portal when his profile is accessed using "Search Taxpayer" functionality.

24th September 2021

An applicant shall undergo Aadhaar authentication for filing an application for revocation of cancellation of registration in FORM GST REG-21 under Rule 23. (Notification No. 35/2021–Central Tax)

Under Aadhar authentication, an authentication link is sent on the registered mobile number and email id. On clicking the verification link, a window for Aadhaar Authentication will open where an applicant needs to enter Aadhaar number and the OTP received on the mobile number linked with Aadhaar.

29th July 2021

The taxpayers who have been newly registered on the GST portal but have not yet furnished their Bank Account details, may login and update the same through the Non-core amendment. 

28th May 2021

The last date for filing 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.

Frequently asked questions (FAQs)

In States other than the Special Category States, the registration limit for the persons who are engaged in an exclusive supply of goods is Rs 40 lakhs, and for service providers is Rs 20 lakhs.

Read more: Increased GST registration limit

If services are being provided from Pune then registration is required to be taken only in Maharashtra and IGST to be paid on inter-state supplies.

No, a franchisor company need not take registration in a state where only its franchisee is located.

A supplier of service will have to register at the location from where he is supplying services.


Share :
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.