Can multiple registrations be taken for your business under GST law

A person liable for registration under GST should obtain a single registration from the state or union territories from where supply is made. Which means, a person should obtain a single registration for multiple factories, godowns, sales offices or branches within the state or union territory if total aggregate turnover of the business in India crosses the aggregate turnover threshold limit. However, such a person based on the requirements can at his option take multiple registrations for different categories of business or verticals within the state or union territory.

For instance, if a person has a business in Delhi and Mumbai, then he has to apply for registration in each state to get GST registration. This means for the same PAN, two GST numbers will be issued, one is for Delhi and the other one is for Maharashtra. Now the question is, can a person have more than one GST number in Delhi and/or in Mumbai. Answer to this question is, Yes. It can happen if such a person is carrying multiple business verticals in the same state, and he want to have separate registration for each such business verticals within the state or UTs. In such a case, that person can get separate registration with the same PAN for each such business verticals within a state subject to the terms and conditions of the act.

Business vertical means distinguishable component of an enterprise that is engaged in supply of individual goods or services or a group of related goods and services which is subject to risks and returns that are different from those of other business verticals.

If multiple registrations are taken under goods and services tax laws with the same income tax PAN within a state or union territory, then each such verticals for which separate registration has been obtained will be treated as establishment of distinct person for the purpose of GST.

This means a person having 5 business verticals in a state or union territory can obtain a separate registration for each such vertical with the same income tax PAN.

If you have decided to get separate registration for each such business verticals, then you need to submit a separate application in form GST REG-01 is respect of each such verticals.

These business verticals having separate registration will not be eligible for composition scheme.

As you have obtained separate registration for each business verticals, each such vertical shall be treated as a different registered person. Therefore, GST shall be payable on supply of goods or services or both made to another registered business verticals of the same person (having same Income tax PAN). Due to this you need to issue tax invoices as required to business verticals as per GST rules.

Here are certain frequently asked questions and answers on multiple GST registration:-

Can a company have multiple registrations under GST?

Yes, a company with multiple business verticals can choose to apply for more than one GST registration numbers against a corresponding PAN in a state or union territory. For instance, a company with a manufacturing unit and trading unit in a state, can apply for two GST registration, one for manufacturing unit and second one for trading unit.

Please note, composition scheme to these business verticals with separate GST registration number will not be applicable based on the turnover of these business verticals being below the threshold limit. In such a case, you have to consider the aggregate turnover of the company (Per income tax PAN) to see if it exceeds the limit.

It doesn’t matter what form of business you are carrying. Above provisions are applicable to a proprietor, partnership firm and company.

Can two different businesses registered under one GST number?

Yes, if you have two businesses within the same state or union territory under one income tax PAN and both the businesses are different, then you can apply for two GST number.

If one business is in one state and the other business is in another state, then also you can apply for two GST number. In this case, you need to apply with respective states.

When multiple registrations under GST is possible?

It’s possible when a person is supplying goods and services from two different states. In such a case, the concerned person can take different GST registration for each state which should be based on a single income tax PAN.

A person can also have more than one GST number, if such person has more than one different business verticals within the same state or union territory. For each business verticals, you can apply for a GST number with the same income tax PAN.

Are we eligible for GST registration if non of our business verticals is crossing the threshold limit?

In such case, annual aggregate turnover of all the verticals with the same PAN should be added to determine the threshold limit of GST registration. If its crossing the threshold limit, then GST registration is a must.

is a fellow member of the Institute of Chartered Accountants of India. He lives in Bhubaneswar, India. He writes about personal finance, income tax, goods and services tax (GST), company law and other topics on finance. Follow him on facebook or instagram or twitter.