Multiple GST Registration in the Same Address

The Indian business is growing very fast, and there are many divisions or branches operating under one roof. When introducing the Goods and Services Tax (GST), the question arises: Can there be multiple GST registrations under a single address? It is, yes, with certain conditions and legal requirements.

This blog explains the idea, regulations, and eligibility for having multiple GST registrations on a single premise.

Concept of Multiple GST Registrations

Under the Goods and Services Tax (GST), all businesses must obtain GST registration in every state or union territory where they conduct operations. Each registration has a GSTIN (Goods and Services Tax Identification Number).

But in cases where a business has more than one vertical, division or entity under one address, then it may need different GST registration. This is referred to as multiple GST registrations under the same premises.

GST law Provisions under the law

Multiple registrations under the same address are legalised by Section 25(2) of the Central Goods and Services Tax (CGST) Act, 2017 and Rule 11 of the CGST Rules, 2017.

According to Section 25(2):

“A person who has more than one business vertical in a State or Union Territory can be conferred a separate registration for each business vertical, and such ground rules as can be prescribed.”

Additionally, Rule 11 of the CGST Rules permits the registration of multiple businesses in the same state or union territory, as long as those businesses are distinct and the businesses maintain separate books of accounts.

When Can You Register Multiple GST at the same address?

Several GST registrations within the same address are permitted in the following situations:

1. Distinct Business Divides

When a firm has multiple lines of business operating from the same place of operation, such as IT services and manufacturing, it may also seek separate GST registrations. All business units should have different financial records and tax compliance.

1. Co-working / Shared Office Spaces

The modern business ecosystem is full of numerous startups and freelancers who work in co-working spaces. The GST authorities allow the various entities to take independent GST registration on the same address, but each entity must have a valid sub-lease agreement, desk allotment letter or NOC with the property owner.

1. Separate Entities with the Same Owners

If the same promoter or company has several entities, such as an LLP and a Private Limited Company, they can be registered for GST in the same place, as they are considered separate legal persons under the law.

1. Distribution and Warehousing

Companies that have more than one business branch, like warehousing, logistics and trading, are allowed to receive various GST registrations provided that they have their business activities and accounting independent of each other.

Prerequisites for Multiple GST Registration on the Same Address

To prevent rejection or compliance problems, the following requirements are to be fulfilled before a multiple registration is applied by the same premises:

1. Every business organization should have a unique PAN (Permanent Account Number).
2. Each registration should have separate books of accounts.
3. Each GSTIN requires that the applicant show that s/he have independent business activities.
4. A legitimate ownership document, a rent contract or an NOC by the landlord is obligatory.
5. Space (where shared offices are) should be demarcated or allocated properly at the desk.
6. All entities are to file returns and comply separately.

Procedure to Apply for Multiple GST Registrations at the Same Address

To register more GSTs, do the following:

Step 1: Visit the GST Portal

Visit the GST portal at the official GST site of www.gst.gov.in.

Step 2: Sign in using Existing GSTIN

Log-in with your current details and apply the option of New Registration under the services tab.

Step 3: Provide Legal Details

Enter the information about the new business vertical or entity, PAN, business name, and trade name.

Step 4: Home Deposit Support Documents

Send the required documents including address proof, rent agreement, electricity bill, and authorization letter.

Step 5: Verification and Approval

After the application has been received, the GST authorities make sure that the documents are verified. A new GSTIN will be issued on the same address in case the new GSTIN is found in order.

Documents Required

The following documents are required to get several GST registrations under the same premises:

1. PAN card of the business entity or business.
2. Evidence of location of business (rent agreement, ownership deed, or NOC)
3. Identity and address validation of authorized signature.
4. Bank account details
5. Business constitution certificate (e.g. Partnership Deed, LLP Agreement or Certificate of Incorporation)
6. Evidence of different business operations or verticals.

Benefits of Multiple GST Registrations at the Same Address

1. Easy segregation of business: The various divisions or entities can handle their GST compliance, returns, and invoices.
2. Separate Tax Liability: Taxes are separate and make the accounting and filing easier.
3. Flexibility in Operations: It is easy to introduce or shut down divisions without interference with the primary registration.
4. Improved Compliance Control: Independent records contribute to audit and GST evaluations.

Key Things to Keep in Mind

1. a) If one entity that has the same address fails in terms of GST compliance, it will have no bearing on the other registered entities.
2. b) However, any entity must have certain documentation to show that it exists independent of that entity.
3. c) The GST department can also verify or inspect when the registration is granted.
4. d) If there is misuse of the address or false declaration, the registration may be cancelled, and penalties may be issued in accordance with the GST Act.

Conclusion

It is legally permissible and feasible to hold multiple GST registrations at the same address when a business has diversified operations. Nonetheless, it also needs to be documented, accounted for differently, and disciplined in its compliance.

When your business is a multi-vertical, co-working or shared office business, you can seek separate GST registrations to simplify the taxation and compliance.

To get professional help with GST registration, compliance, and documentation, please contact Kanakkupillai GST registration services—your business registration, tax advisory, and legal service partner in India.