A GST number is also known as GSTIN – it is a number that is given to any business and registrant under GST. It is very useful for filing returns and adhering to the provisions of GST law. A business organization that owns more than one operation or has branches can compulsorily register for GST again for each operation or can integrate all its operations under one GST registration if certain conditions are met.
Can Multiple Businesses Be Registered Under One GST Number?
As per Indian GST laws, it is legal and very much possible for business entities to conduct and manage more than one enterprise under a single GST number, but this accommodation is always unconstrained by some conditions. Another condition the government stresses is that all businesses should be run within the framework of the same legal entity or belong to the same owner. Where different businesses are operating under different ownership or in different states, new registrations for GST will be needed.
Conditions for Adding Multiple Businesses?
- Same Legal Entity: The businesses have to be owned and run in the same legal form, for example, as a sole trader, a partnership, or a limited company. This means that the concept of the GST number is going to be applicable to branches or divisions that are part of the same legal entity.
- Same State: Unlike before, where businesses being added under a particular GST number could be in different states, all the businesses being added under a GST must be in the same state. In case the concerns are operating in multiple states, each state will demand a different GST registration.
- Different Business Activities: Businesses can be associated with various activities, but all need to operate under the same legal structure.
How to Register Multiple Businesses Under One GST Number?
For multiple businesses to be registered under a single GST number, registering a business under multiple GST sub- registrations. Here’s how you can go about it:
Step 1: Check Eligibility
First of all, verify whether the proprietors of your businesses are eligible for a single GST registration. The businesses have to be owned by the same company and have to do business within the same state. If you meet this condition, you can register multiple businesses under one GST number.
Step 2: Different Categories of GST Registration
Based on the nature of the business, you have to choose the appropriate GST registration. This can include:
- Regular GST Registration: This is for those sectors or industries where the supplied turnover is above the threshold limit for engaging in GST registration.
- GST for Special Category States: In most detailed provisions, there are few standards required for the companies that are in special category states like J&K, Assam and many others where the provision of GST is a little different.
- Composition Scheme: For the companies whose turnover is less than ₹ 1,5 crore (₹ 75 lakh for some states), the so-called composition scheme is provided. However, this scheme holds an exception only when every business entity that falls under the same GST registration meets the test.
Step 3: Apply for GST Registration
When you are sure, for instance, that you are eligible to register for the GST, you may register for multiple businesses and be issued with just a single registration number. Follow the steps below:
- Visit the GST Portal: Access the GSTN portal on the internet; the address is http://www.gst.gov.in/.
- Login: If you were registered for GST earlier, you need to log in to the account. If you do not have a GST number, you will have to first register here. Before applying, make sure you know your current GST number.
- Fill in the Application Form: Select the “GST REG-01” from the registration menu and complete the formalities that you are asked to do. If you register more than one business under one GST number, be sure to provide all business information, such as name, PAN, business address, and type of business.
Step 4: Provide Proof of Business
Alternatively, to license multiple business inputs under one GST number, you may be requested to provide some documents that would prove the legal identity of the respective business. These can include:
- Proof of Business Ownership: Something like a partnership deed, certificate of incorporation, etc.
- Address Proof: Official documents of business address like power, water bills, rental agreement, registration documents of the property, etc.
- Bank Account Details: Bank statements or passbooks of the business in which each business is included with other relevant papers, if any, properly bound and arranged.
Step 5: Submit the Application
Once all such documents are uploaded and all such particulars are entered, complete the GST registration application. Once your application is verified by the GST department, you get a GST identification number or known as GSTIN.
Step 6: Post-Registration Compliance
After you register for GST, you will find yourself submitting your GST returns regularly based on the frequency of filing. This includes:
- Monthly Returns (GSTR-3B): You should file your sales, purchase and tax returns on a monthly basis.
- Quarterly Returns (GSTR-1): All the outward supplies should be accompanied by a summary of them.
- Annual Returns: Submit an annual return on your actions as a GST registrant.
The turnover of all the businesses shall be compiled in the same GSTIN, and for compliance purposes, the use of different registration ID numbers for different business activities must be used, but in terms of record keeping, the business activities must be recorded separately to avoid complicated situations in case of audit or inspection.
Benefits of Adding Multiple Businesses Under One GST Number
Now, let us understand the benefits of GST registration for multiple businesses in a single place.
- Simplified Compliance
Having more than one GST number for each business is not easy to handle. If all your businesses are registered under a single GST registration number, then compliance and paperwork formalities for GST are less.
- Cost Savings
One of the most important benefits of GST is that to register under GST Act, one has to do it once, irrespective of the amount of turnover he possesses, which in turn reduces the overall expenses such as filing fees, record-keeping expenses and other overhead.
- Improved Awareness of Operations
If different entities belong to the same business, then efficiency and effectiveness in tracking the tax obligations, setting off credit, and getting refunds to the different entities are simplified under the same GST number.
- Single GST Number for Input Tax Credit (ITC)
All the operations under the same GSTIN can maintain Input Tax Credit ITC for taxes paid on business expenses, thereby establishing better control over a clear separation of the total tax credit balance.
Conclusion
Adding multiple businesses under a single GST number is one of the best strategies for managing operations and possible hassles. But it entails sound planning and record-keeping as well as adherence to the rules of the goods and services tax. When all the incorporated businesses perform under the same legal entity and in the same state, it becomes possible to pursue simplified taxation and reduce costs.
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