It has been years since the launch of GST, and yet there are still specific questions raised often regarding the working of GST. In this article, we shall answer all the questions raised over trading and manufacturing from a single GST number.
If you own multiple businesses, business verticals, or business branches in the same state, you might want to handle all these under the same GSTIN. This concept is called Vertical Business in GST Number. Let us now see some frequently asked questions regarding trading and manufacturing under the same GSTIN as mentioned by the CBEC.
Can I hold the same GSTIN for my multiple businesses performing activities from one state?
Yes, you can register all your businesses performing activities in the same state. Be it a different business branch, business vertical, or an entire business type, you can add all these under one GST Registration India.
Can I operate my businesses across states under the same GSTIN?
No, each state has a different state code. Accordingly, you must obtain a separate GST registration for your businesses, if they are located and supply goods and services from a different state. All the businesses, branches, or business verticals that you want to add under your GSTIN must exist in the same state
Does a business entity require separate registrations for performing trading and manufacturing activities in a single state?
It is not mandatory to acquire separate registration if you own a business entity that performs both trading and manufacturing activities in a single state. You can add ‘n’ number of businesses under one GSTIN. If you wish to manage your businesses separately, you can even opt to get your businesses registered separately.
Can I add multiple businesses under the same GSTIN if my business is registered under the GST Composition Scheme?
No, you cannot add your various businesses under the GSTIN if your business is registered under the GST Composition Scheme.
Should I tax the supply of goods and services made to my other business verticals or branches?
Yes, all your businesses under the GSTIN must tax the supply of goods and services to any other business, branch, or business vertical under the same GSTIN and issue a tax invoice for the supply.
What if I hold different branches across states, but supply goods from the headquarters only?
In a case that came across a bench at the Authority for Advanced Ruling (AAR), the AAR had to analyze if the applicant company can raise the invoice from its Mumbai headquarters for the products received at various ports located in different Indian states.
The AAR ruled out that though the company has various godowns that are located in various states since the company supplies its goods from only its Mumbai headquarters, the applicant can clear the goods by issuing invoices from its Mumbai office.
However, the company has to pay GST Number in the state of Maharashtra. Therefore, the AAR in its final judgment held that the company does not have to take separate GST registration for its godowns in various states. To avail Input Tax Credit (ITC), businesses must register under GST.
If there is an event being held by a Maharashtra company in Delhi, will the company have to register in Delhi? Is it not enough if the Maharashtrian company?
If the Maharashtra company provides any supply from Delhi, they will have to acquire registration in Delhi. If not, registration in Mumbai will be enough. The company will have to pay IGST on any supplies made from Mumbai to Delhi.
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If a person has a PAN and TAN as well, will he or she require a separate GSTIN for deducting TDS?
Separate registration is required as a tax deductor.
Will the turnover of the agents have to be added to that of the principal for GST registration?
No, the turnover of the agents does not have to be added to the principal for GST registration.
What if I own a business registered in Tamil Nadu, and am getting services from an unregistered dealer in Andhra Pradesh(AP)? Will I have to register in AP to discharge GST under Reverse Charge Mechanism (RCM)?
Any person who makes an inter-state supply of goods or services must register for GST. Therefore, in this case, the dealer located in Andhra Pradesh, must register for GST, and pay taxes.
Will I be required to pay GST to the government if I take up the Composition Scheme under GST, and then purchase goods from an unregistered person?
Yes, you must pay tax on a reverse charge basis for the supplies you take from an unregistered person.
Why Hire Vakilsearch?
Vakilsearch has a team of professional GST Number experts, who are updated with all the latest rules of GST. Therefore, with so many queries lingering around GST, we urge you to connect to taxation professionals at Vakilsearch to clear out all your queries and help you obtain GST registration for all your businesses, in a legal, proper, speedy, and hassle-free manner.
