GST has simplified the erstwhile complex taxation system in India. However, people still have certain questions regarding GST registration and working. To answer one of the most commonly asked questions, this article explains if you can manufacture and trade with the same GSTIN.
With the same PAN and GST number you might want to operate your manufacturing and trading businesses. The GST Act allows firms to operate multiple businesses and business verticals from the same its number. This concept is called Vertical Business in GST. Under this concept, you can register your different businesses and business branches under the same number.
You can either opt to operate your different businesses under the same its number or if you wish to manage them separately you can obtain separate registrations for your businesses, as well. If you own various branches of your business, have multiple business verticals, or have different businesses of varying natures, you can still add all these multiple businesses under a corresponding GST registration number.
What Are the Advantages of Registering Various Businesses Under the Same GSTIN?
Registering multiple businesses under a single GSTIN can provide your business with the following benefits:
- This facility for various businesses to be registered under the same GST Number Online numbers is truly supportive of business diversification and expansion.
- It favors the growth of MSMEs in India.
- As an entrepreneur, you can freely expand your business over a vast region within a particular state with no requirement for a separate registration process.
However, if you wish to maintain and handle your businesses separately, you must obtain a separate GSTIN for each of your businesses.
What Are the Conditions to Be Met for Registering Various Businesses Under the Same GSTIN?
If you decide to add multiple businesses under the same its number your business must satisfy the following conditions:
- Multiple businesses, branches or business verticals that you wish to add under a single GSTIN must exist in the same state.
- If your business is registered under the GST Composition Scheme, it will not be allowed to avail of such a facility.
- All the businesses that are included under the GSTIN must tax the supply of goods and services to another business vertical of the same category, and issue a tax invoice for the supply.
Considering the above-mentioned conditions, you can easily add multiple businesses under the same GST number.
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What Is the Step-by-Step Procedure to Include Multiple Businesses Under the Same GSTIN?
The step-by-step process for adding your multiple businesses under the same its number is mentioned below:
Step 1: Log in to your GST account on the GST portal
Step 2: From the Registration tab select the option “Amendment of Registration Non-Core Fields”.
Step 3: From the given Non-Core Fields, choose the option – “Additional Place of Business.”
Step 4: Click on the continue button. On the next screen that appears, you have to specify the Goods and Services you wish to add. Enter the HSN code in case of goods and SAC Codes in case of services.
Step 5: Mention the various bank accounts your business holds.
Step 6: Enter your state-specific information such as Employee code (EC), State Excise License Number with the person in whose name the business holds the Excise license, Professional Tax, and Tax Registration Certificate number.
Step 7: As a final step, you need to authenticate the entered information by clicking on the verification check box and submitting the data along with the DSC verification.
Step 8: On successful verification, your business will be added to your existing GST number or GST registration account.
Why Should You Approach Vakilsearch?
If you own a manufacturing business and desire to add trading to the same GSTIN, you must add the additional business to your GST registration following the aforementioned process. To avoid the ramifications of GST registration, and add your multiple businesses, or business verticals to a single GST number efficiently and quickly, we strongly urge you to approach Vakilsearch. Professionals at Vakilsearch make sure you get your multiple businesses added to your existing GSTIN by handling all the tedious registration responsibilities and formalities on your behalf.
The Takeaway
Handling various businesses under the same GST enables you to maintain your multiple businesses easily from under one GST registration number. However, you must be sure to tax the supply of goods and services from one business vertical or branch to another.
Therefore, if you wish to maintain all your businesses that operate within the same state under the same GST number you can add the business to your existing GST registration number as per the process mentioned above. It is suggested to hire professionals like Zolvit to help you amend your registration, as they would handle all the legalities and documentation for you properly, and swiftly.
