GST Registration for Multiple Businesses

GST registration for Multiple Businesses

The GST registration is PAN based and State specific. Supplier has to register in each of such State or Union territory from where he effects supply.

What is considered to be a State for the purpose of GST Registration?

Area up to 12 nautical miles in the sea consider a part of the nearest coastal State for the purpose of GST registration. This is where the nearest point of appropriate base line is located. Area beyond 12 nautical miles and up to 200 nautical miles, which don’t cover under any Union Territory consider as a separate Union territory for the GST law.

GST Registration Number or GSTIN

In GST registration, the supplier is allotted a 15-digit GST identification number called “GSTIN”. A certificate of registration incorporating there in this GSTIN is made available to the applicant on the GSTN common portal. The first 2 digits of the GSTIN is the State code, next 10 digits are the PAN of the legal entity. Furthermore, the next two digits are for entity code, and the last digit is check sum number. Registration under GST is not tax specific which means that there is a single registration for all the taxes i.e. CGST, SGST/UTGST, IGST and cesses.

Also Read: Know Documents Required For GST Registration


When to apply for GST Registration?

Businesses having Annual Aggregate Turnover (AATO) of more than the prescribed limit. This limit is as per their business in the relevant State need to obtain GST Registration. The specific limit as per the State is as follows:


Now, comes the main questions:

Do you need to obtain multiple GST Registrations if you operate the businesses in a single State?

The person not require to obtain multiple GST Registrations, if he operates businesses of similar nature in a single State. In that case, his one GSTIN will suffice for other businesses also, which are within the same State.

Also Read: Qualifications For GST Registration

For instance, Suresh is having multiple restaurants at Yamunanagar, Gurgaon and Faridabad which are in the State of Haryana. He will require to obtain only one GST Registration number. Since his nature of business is same and place of businesses are within the same State.

However, is the person is having multiple and different business verticals within the same state. Then he need to obtain different GSTIN for each different business even if they are within the same state. Business verticals are distinguishable components of an enterprise that is involve in the supply of individual goods or services or a group of  goods or services. These are subject to risks and returns that are different from those of the other business verticals.

For instance, Ramesh is having business of textiles in Yamunanagar, restaurant in Gurgaon and accounting firm in Faridabad which are in the State of Rajasthan. In this case, he will have to obtain 3 separate GST Registrations for each business since they come under the category different business verticals.

Are multiple GST Registrations required to be obtained in case of providing services in multiple states?

If the person is a service provider, who is providing services in multiple states without any physical presence there. Then he need to obtain multiple GST Registration for each State. He need to get GST Registration only for that State in which he has his physical presence or headquarter.

For instance, Rohan is running a software company in Rajasthan and he provides his software services through online platform in various parts of India. In such a case, he need to obtain only one GSTIN i.e., in the state of Rajasthan (where he is physically present).

Providing services without being physically present

But if the person has presence in other states as service provider or goods supplier. Then he will be required to obtain GST Registration in all the States he operates at. Therefore, he will have to obtain individual GST Registration in all the States, where he has his place of business.

Take for example, Sohan is having his restaurants in Jaipur (Rajasthan), Lucknow (Uttar Pradesh) and Mumbai (Maharashtra). Since, he is operating his business in 3 different States, he need to obtain different GST Registrations for each States.

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