Multiple GST Registration with Same PAN

India has implemented the Goods and Services Tax (GST) regime, which aims to simplify the indirect tax system by consolidating multiple taxes into a single tax. But as business expands, it tends to expand operations into different locations, verticals, or even segments of the business. The result is a question often asked: Can a company have more than one GST registration with the same PAN? The answer is yes, though under certain conditions stipulated by the GST law.

The blog outlines the law, eligibility, procedure, and the effects of having more than one GST registration under one PAN, along with tips for compliance to assist the business in managing its tax liability successfully.

Concept of Multiple GST Registration

Every taxpayer under GST has a unique identifier called a Permanent Account Number (PAN). As a rule, a business needs to get one GST registration in each state or union territory. In some specific instances, though, a taxpayer may need to be registered under more than one GST registration, depending on their operational requirements and structure.

The concept is regulated mainly by the Central Goods and Services Tax Act, 2017, and Rule 11 of the Central Goods and Services Tax Rules, 2017.

Governing Laws for Multiple GST Registrations

• Section 25(1) of the CGST Act, 2017: According to this section, each individual who must be registered in GST will receive a distinct registration in each state or union territory where they do business.
• Section 25(2) of the CGST Act, 2017: This is to enable an individual with more than one business vertical in the same state or union territory to receive different registrations on each of the business verticals, under certain conditions.
• Rule 11 of the CGST Rules, 2017: Rule 11 contains the specific procedure and requirements of the separate GST registration in more than one place of business in the same state or separate business verticals under the same PAN.

Can a Business Register More than One GST with the Same PAN?

The following are the situations when a business may receive more than one GST registration with the same PAN card:

1. Several Places of Business in one State

When there are multiple business locations within the same state, such as warehouses, branches, or factories, and each location has a line of business or an independent account, separate GST registrations may be required.

2. Distinct Business Verticals

In cases where a business engages in more than one independent business operation, including manufacturing, trading, and services, the business may register different business verticals under the same state, as long as records and accounts are kept separately.

3. Business Growth and Convenience of Operation

Companies with extensive business activities tend to obtain multiple GST registrations to make it easier to comply with and manage different parts of the company, as well as to handle credit tax matters and reporting.

Requirements to Get Multiple Registrations under the Same PAN

GST law has limitations that must be followed prior to multiple registrations being done on a single PAN:

1. The candidate should possess unique business verticals or a place of operation in a given state.
2. Registration must have different books of accounts and tax records.
3. Supply between two or more registrations within the same PAN shall be subject to inter-branch supplies of GST, although one with the same entity, and thus be subject to tax.
4. The taxpayer must clearly indicate at the point of application the reason for separate registration.

How to Register Multiple GST with Same PAN Online?

It is easy and online to get more GST registrations on the same PAN:

1. Go to the GST portal at www.gst.gov.in.
2. Click on ‘Services’ – ‘Registration’ – ‘New Registration’.
3. Select the existing GSTIN and enter the PAN, mobile number and email ID associated with it.
4. State the name and state that it is another location of business in the same PAN.
5. Enter the information about the business, premises and accepted signatory.
6. Send the application along with attachments of supporting documents, including address, ownership and business activity.
7. After confirmation, the GST department issues a distinct GSTIN for the new place of business.

Taxation and Compliance Implications

Multiple GST registrations under a single PAN should be undertaken with careful adherence to the law, as they involve different taxable entities under the GST.

1. Separate Returns: The registration is bound to submit separate GST returns, including GSTR-1, GSTR-3B and annual returns.
2. Separate Input Tax Credit (ITC): ITC is not cross-utilised amongst different GSTINs under the same PAN.
3. Inter-branch transfer tax: It is taxable on the supply of goods and services between branches having different GSTINs, notwithstanding that they may be part of the same organisation.
4. Independent Assessment: The audits, assessments, and lawsuits of GST registrations are independent.

Benefits of Multiple GST Registrations on the Same PAN

1. Streamlines the operation of multiple or diversified business processes.
2. Allows individual divisions to be clearly accounted for and compliant.
3. Gives room for restructuring the business or selling units.
4. Helps keep superior control over the tax liabilities and credits.

Difficulties and Risks Involved

Although it is positive in some instances, the effect of two or more registrations is that it may make the administrative workload heavier:

1. Compulsory compliance per GSTIN will make it time-consuming and expensive.
2. Restrictions on cross-usage make the use of ITC complicated.
3. Risk of issues with classification when the verticals of business are not well defined.
4. Risk of having to pay taxes on inter-unit transactions.

Therefore, companies need to consider the need carefully before seeking various GST registrations.

Conclusion

The GST law allows you to hold multiple GST registrations using the same PAN card as long as the business meets the necessary requirements. This is especially relevant when a company operates across various business areas or has multiple business entities. However, having multiple GST registrations will incur additional compliance costs and tax implications. Businesses must be able to manage sufficient accounting, transaction records for each branch, and filing requirements to avoid penalties.

Professional advice for multiple GST registrations should be sought prior to undertaking that decision, so that your business can be not only compliant with the GST regime, but also working to its full potential.

Related Service

GST Return Filing Online