GST is an indirect tax which has replaced the various indirect taxes which were being levied upon the citizens. The GST Act was passed in the parliament by the government of India on 29th Match, 2017 that into effect on 1st July, 2017. There are three taxes applicable under this system- IGST, CGST, SGST, UTGST. Various different provisions were made for Multiple Registration under GST.
Under the GST Registration process businesses with an aggregate turnover of more than INR 40 or 20 lakhs in case of the supply of goods, and INR 20 or 10 lakhs in case of the supply of services are bound under the act to register under GST as a normal taxable person.
Benefits of registration under GST
GST for Normal Registered Business
- To be able to access Input Tax Credit
GST for Composition dealers
- To avail high working capital
- To enjoy less tax liability
- To have limited compliances
The registration process mainly consists of obtaining a Unique Identification Number. It is a fifteen-digit number known as GSTIN and has the Permanent Account Number (PAN) and State code of Applicant encrypted in it. The government has made the use of the allotted PAN compulsory to obtain GSTIN and thus has granted an opportunity to successful business ideas to extend their business in two or more states and each can then have a distinguished number which shall be registered under the same PAN of the applicant.
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Provisions available in the law for Multiple Registration under GST
The following provisions were made in the law for multiple registrations under GST:-
Places of businesses in two different State or Union Territories
Section 25 subsection (1) of the CGST ACT, 2017 states that:-
“Every person has to apply for GSTIN in every State or Union territory in which he/she is liable to register.”
This means that if you have places of businesses in two different state or union territories then you are required to register in both the states and union territories. For example, a person operating from Ahmedabad has a subsidiary office in Bangalore will have to obtain two GST Registration for the two different locations. The PAN can be used for the registration in both the states.
Several Business Branches or verticals in a single State or union territory
- Section 25(2) of the CGST ACT,2017 states that:
“A person carrying on business with several business branches or verticals in a single State or union territory may be granted a different registration for each different business branch or vertical subject to some specific conditions and rules.”
This means that two different businesses can be operated with Multiple Registration under GST within same state or union territory applied with the same PAN of the applicant. There are certain rules and provisions which such businesses are required to follow:
- The nature of goods and services.
- The nature of production process followed.
- The type of customers for goods being supplied and services being provided.
- The different acts used to distribute the goods or supply of services and take them to the customers.
- The nature of the registered entity and the regulatory environment (wherever applicable) including insurance, banking, and public utilities.
An amendment has been brought in this section and instead of business verticals it has now been changed to places which means that a person who is having multiple places of conducting business can receive a different registration for each different place of business.
2. Rule 11- CGST Rules, 2017: The rules laid down in the act provide certain provisions for receiving different GSTIN for different business branches or verticals in the same state or union territory. Rule 11(1) of the ACT provided instructions to obtain registrations for the new business vertical:
- A person wanting a separate GSTIN shall have more than one business branch fulfilling the requirements in the definition under section 2(18) of the ACT.
- The registration shall not be accepted if any other branch has already been registered under the same person.
3. Section 9 states that:- All differently registered verticals and branches of such a person shall be liable to pay tax under the ambit of the act on the supply of goods and services to other such registered business verticals or branches of such person and to issue an invoice for it.
4. Rule 8(1), CGST Act 2017 states that:-Person having business registered under the Special Economic Zone[1] or who is an SEZ developer shall have to make separate application as a vertical to be recognized outside of the SEZ for separate GST registration.
Procedure for GST Registration
The Multiple Registration under GST procedure is conducted online through a portal. This portal is maintained and operated by the Central Government of India. The government has to appoint GST Suvidha Providers also known as GSPs. This personnel is appointed to help with the registration process. Based on the information provides by the GST portal the registration procedure is given as follows:
- Part A of Form GST REG – 01 is to filled on the GSTN portal or through the Facilitation centre by the applicant. The details to be entered here by the applicant include PAN, mobile number, and email address.
- The PAN, Mobile number and email address are then verified on the GST portal and through the OTP. After this verification, the applicant receives a reference number and an acknowledgement is also received in FORM GST REG-02.
- The application reference number has to be specified in Part- B of FORM GST REG-01. This form is to be submitted after filling in the other required details and attaching the requested documents.
- FORM GST REG-03 is issued if any additional information is required.
- FORM GST REG-04 is required to be filed by the applicant in response to the information asked within 7 working days from the date of the receipt of the above-mentioned form.
- If you have provided all information required in Form GST REG-01 or Form GST REG-04, the certificate of registration in Form GST REG –06 for the place of business and for every other additional place of business can be issued to the applicant by filing the above-mentioned forms. A person having multiple business within a state could file a different application for the registration of GST in Form GST REG-01 for each business types.
- If the details submitted are not up to mark then the registration application can be rejected by Form GST REG-05. The candidate who is having the obligation to deduct TDS or collect TCS has to submit an application in Form GST REG – 07 for registration of GST. If he is no longer required to deduct or collect tax at source then the officer may cancel and communicate the cancel of registration.
Conclusion
Various different provisions were made for Multiple Registration under GST. Under the GST Registration process businesses with an aggregated turnover of more than INR 40 or 20 lakhs in case of supply of goods and INR 20 or 10 lakhs in case of supply of services are bound under the act to register under GST as a normal taxable person.
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