Multiple GST Registration with Same PAN
PAN Card is the Permanent Account Number which is a unique number issued by the Income Tax Authority to the business entities, individuals, and other persons for the purpose of identification. This is one of the basic necessities for any business entity to operate in India. This can also be used by the business entities for filing their Income Tax Returns (ITR) during each assessment year.
Coming to the registration of GST also, PAN Card and furnishing of the details of the same is a basic necessity without which the GST registration shall not be granted. As stipulated before, the PAN is the major component of the GSTIN and this makes the GSTIN unique for each of the entity or persons under GST.
Hence, when a business entity wants to take multiple registrations using the same PAN, it may not be an easy task and would be allowed only when there is the proper and applicable reason for the availing of such registration. Two reasons for this as discussed before would be as follows:
- When the entity is having its business branch or outlet opened in a state which is different from the one’s in which its business is existing already.
- The business entity or business owner is dealing with inter-state supply of goods or services or separate GST registration is required.
- The entity is having a business vertical functioning within the state and due to this, it is in need of multiple registrations under the same PAN. Here business vertical is nothing but, a distinguishable component of an entity. And it is supplying goods or services or both which are of individual nature or such related goods or services or both, having different risk and returns from those of other business verticals belonging to the same entity.
It should be noted that, in case of a business that is taking registration using same PAN, cannot opt composition scheme of tax payment if the other business registered using the same PAN is following the normal tax payment regime. In the case of a business which is having or owns a unit outside of SEZ unit, then a separate business registration should be taken under GST using the same PAN.
Thus, we can now conclude that the business entities or persons can avail multiple registrations using the same PAN in a different state or the same state and this is also made mandatory in many cases pertaining to the provisions of the GST for an easy and transparent conducting of business transactions. Business entities often take GST registration for increasing their compliance and also making the taxation on track and for this it is important there is proper understanding gained with regard to the registration and the multiple registrations.
The GST is working on the baseline – ‘one nation, one tax’. And this makes the compliances a bit easier for business houses. The arrangement for availing of multiple registrations is again a major benefit provided by the GST Act and Authorities for increasing the ease and simplicity of the compliance.