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Can One PAN Card Be Used For Two GST Registrations?

Wondering about whether or not multiple GST registrations can be made with a single PAN card? You’ve stumbled upon just the right read. In this blog, we will be discussing instances where the same PAN card can be used to obtain two distinct GST registrations.

The last date for linking Aadhaar with PAN is 30th June 2023. PAN will become inoperative from 1st July 2023 if it is not linked with Aadhaar.

The Goods and Service Tax (GST) is a destination-based indirect tax levied on the supply of goods and services. It has replaced many indirect taxes such as VAT, service tax, CST, excise duty, and so on. To establish GST as a comprehensive indirect tax, the government introduced the CGST Act with effect from 1st July 2017.

Section 25 (1) of the CGST Act mentions that an individual/business entity should apply for GST registration in every State/Union Territory, where he is liable to register. This process of registration under this act is known as GST registration and it can be done easily on the GST portal online. 

Importance of PAN Card

As mandated in the Income Tax Act of 1961, a PAN card is a must for all individuals, companies, partnerships, non-profits etc. The IT department uses the PAN card to track all financial transactions which take place in the country. 

Getting a PAN card online helps a company receive several remittances and invoices and is also beneficial while filing IT returns. If you are without a PAN card, you cannot enjoy the tax benefits and schemes offered by the government and you will be liable to pay taxes at the highest rate applicable. If you don’t have one yet, it’s high time you apply for a PAN card online.

GST Registrations and PAN Card

The GST regime came into force with the motto “One Nation, One Tax”.  It wanted to bring both direct and indirect taxes under one umbrella. GST is an indirect tax by nature and it is linked to PAN which is based on direct taxes.

Normally, a person obtains only one GST registration in a state or UT if his business is restricted to only that state/UT. But, if he operates in two or more states/UTs, he is liable for GST registration in each of those states/UTs. For example, if he is dealing in the trading business and he trades in both Delhi and Mumbai, he will need to apply for GST registration in both these states.

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For the same person in our previous example, two distinct GST numbers will be allotted, in two different states. But, both will be linked to the same PAN card belonging to him. This shows that 2 GST registrations are possible on one PAN card. This is the case where multiple GST registration is necessary. Nowadays, GST numbers can be linked to PAN cards online.

It’s also a matter of personal preference whether two GST registrations can be completed with a single PAN card. This occurs when a person operates many business verticals in the same state or UT. In such a scenario, he can opt to have separate GST registrations for each of these verticals, subject to fulfilling conditions mentioned in Sec 25 (2) of the CGST Act.

Find out the exact amount of GST to be paid before registering for GST using our GST calculator.

What Is the Business Vertical?

The term ‘Business Vertical” is described in detail in section 2 (18) of the CGST Act, 2017. It means a uniquely distinguishable component of a business enterprise that is occupied in the supply of individual services/goods or related services/goods. Also, the component is subject to possible returns and risks that are completely different from other verticals of the business.

Here, the factors that determine whether the services or goods are related includes:

  • The nature of the processes of production
  • The type of services or goods
  • The class or type of customers availing the services or goods
  • The methods of supply of services or distribution of goods
  • The nature of the regulatory or statutory environment – including insurance, banking or public utilities.

Important Points to Note While Obtaining Multiple GST Registrations

  1. Your business should fulfil the above-mentioned criteria of business vertical
  2. Additionally, you cannot avail of the composition scheme against a particular business vertical if any of your other business verticals is no longer eligible to pay tax under the composition
  3. You need to issue tax invoices or pay tax (as prescribed in the CGST Act) on the supply of services. Or goods between your own registered business verticals.

How Vakilsearch Can Help?

GST registration and GST returns filing with Vakilsearch will take the burden off your shoulders​. You’ll never have to worry about the intricacies and nuances of the GST registration process nor will you have to remember the GST due date again. The complexities of GST can be leveraged with the help of experienced GST specialists: such as ourselves. Make the right choice, get Vakilsearch on your team today!

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