If you own a business with various branches or different business verticals altogether, you might wonder if you can use the same GST number for all the businesses. This article will explain how to add multiple businesses under the same GST number.
The GST Act demands all the suppliers of taxable goods and services who attain the turnover as prescribed by the act from time to time, to register for GST. The registration has to be done from the state or Union Territory from which the supply was made. GST registration has indeed acted as a remedy against all hindrances related to the erstwhile taxation system. Though every business with a turnover exceeding ₹40 Lakhs needs to register for GST, there are infinite voluntary GST registration procedures that are available to everyone. Let’s dive in to learn how to add multiple businesses under the same GST number.
The GSTIN number has a prescribed format wherein the first two numbers represent the state in which the business has registered for GST. Hence, the first two digits in any GSTIN represent the state of GST registration. The PAN of all your businesses operating across states will remain the same.
Do You Need Separate GST Registration for All Your Multiple Businesses and Business Verticals?
You can operate your various businesses, business branches, and business verticals with the same PAN, and GST number. The GST Act allows businesses to operate multiple businesses, business verticals and business branches using the same GSTIN. This concept is called Vertical Business in GST. As per this concept, you can register your various businesses and business branches under the same GST number.
You can opt to operate your different businesses under the same GST number or if you want to manage them separately, you can obtain separate registrations for all your businesses as well. Therefore, if you own various branches or multiple businesses, you can choose to add them under a corresponding GST Number India. This facility of adding multiple businesses under the same GST registration is undoubtedly truly supportive of business expansion and diversification. It favors the growth of MSMEs and start-ups in India.
As an entrepreneur, you can expand your business over a vast region within a state, without having to get caught in the hassle of the GST registration procedure for each of your branches or business. You can instead choose to add all the other businesses to a corresponding GSTIN.
What Are the Conditions for Adding Multiple Businesses under the Same GST Number?
You can add any number of businesses to your existing GSTIN provided you meet the following criteria set out by the CBEC:
- Multiple businesses, business verticals, or business branches must exist in the same state.
- The business should not be an entity registered under the GST Composition Scheme. Entities registered under the Composition Scheme are not allowed to use this facility.
- Every business entity has to tax every other registered branch, vertical, or business for the taxable supply of goods and services. For every sale made, a tax invoice has to be issued.
Taking into consideration the aforementioned conditions, you can add multiple businesses to your corresponding GSTIN. Now, let us look at the procedure to do so.
Step-By-Step Procedure To Add Multiple Businesses Under the Same GST
The process of adding your multiple businesses or branches to a corresponding GST is simple. You need to:
- Step 1: Log in to 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, select the option ‘Additional Places of Business’.
- Step 4: Click on the Continue button. The screen that appears next will demand you to specify the Goods & Services you want to add.
- Step 5: Enter the HSN code in case of goods and SAC codes in case you provide services. Click on the Save & Continue button.
- Step 6: The next set of details you need to provide are the details of the bank accounts your business holds.
- Step 7: You will then be required to enter the State Specific Information such as the Professional Tax employee Code (EC), Tax Registration Certificate (RC), and the State Excise License Number with the person in whose name the Excise License is held.
- Step 8: The last step is verification and authentication, for which you will be required to click on the verification checkbox, and click on the submit with DSC button. After verifying your DSC, your business will be added to your GST registration account.
Finally, you need to authenticate the entered information by clicking on the Verification checkbox and clicking on Submit with the DSC button.
Can I Use One GST Number for Multiple Businesses?
Under GST law, businesses have the flexibility to register multiple verticals under a single GST number within the same state. The decision to opt for a single GSTIN or multiple GSTINs for distinct verticals lies with the business owner. If the choice is made to register different verticals under one GSTIN, separate bookkeeping, issuance of distinct invoices, and filing returns individually for each vertical become necessary, even though they fall under a unified GSTIN. Documentation concerning input tax credit must be maintained separately for both businesses and common credit must be allocated as per GST rules.
For businesses utilizing multiple GSTINs, the requirement is to file separate returns for each GSTIN. To understand this further, let’s examine a few scenarios:
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Pilder Rome
Business Overview: Pilder Rome is a well-known athleisure brand with outlets in Patna, Hyderabad, and Bangalore, each with its own GSTIN due to state-specific operations.
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Holden Solutions
Business Overview: Zenith Tech Solutions offers both IoT and chemical engineering services. They have separate GSTINs for each division in Karnataka.
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Big Farm
Business Overview: Big Farm operates multi-purpose stores at four locations in Gujarat, all under a single GSTIN.
Multiple GST Registration in Different States/GST Registration for Multiple States
As per GST law, if a single business entity operates in multiple states, each operational unit is considered a ‘distinct person.’ This legal framework necessitates a separate GSTIN for each state where the business has a presence. In other words, business units in different states, such as Maharashtra, Delhi, and Karnataka, are treated as separate entities, each requiring its own GSTIN. This is crucial not only for filing returns but also for state-wise claims of Input Tax Credit (ITC).
Benefits of Having Multiple Businesses Under One GST Registration:
Running several businesses can be a juggling act. But when it comes to taxes, having a single GST registration for all your ventures can make things a lot simpler.
- Less paperwork, less hassle: With just one GST number to manage, you’ll spend less time on paperwork and more time growing your businesses.
- Stay on top of taxes: It’s easier to keep track of your tax obligations when everything is in one place. Plus, you can spot potential issues or opportunities more quickly.
- Save time and money: Managing multiple GST registrations can be costly and time-consuming. Consolidating your businesses under one registration can help you save resources.
- Better business overview: Having a single GST number gives you a clearer picture of how all your businesses are performing. This can help you make smarter decisions.
- Expand with ease: Adding new businesses or expanding your existing ones is smoother when you already have a consolidated GST registration in place.
In short, a single GST registration can streamline your operations, save you time and money, and give you a better handle on your business finances.
Legalities and Criteria for Adding Multiple Businesses Under One GST
Bringing multiple businesses under a single GST umbrella isn’t always straightforward. Here are some key factors to consider:
- Ownership matters: All businesses must share the same owner or owners.
- Stay within state lines: For now, all businesses need to operate in the same state.
- Similar businesses: Your businesses should be involved in similar activities.
- One PAN, multiple GSTINs: You’ll need a common PAN for all businesses, but each will keep its own unique GSTIN.
- Show you’re connected: Demonstrate how your businesses are linked and operate as a cohesive unit.
- Gather your paperwork: Make sure you have all the necessary documents, including business registrations and PAN cards.
- Inform the taxman: Let the GST authorities know about your plans to combine your businesses.
- Get expert advice: Consulting a tax professional can help you navigate the process smoothly.
Remember: Always comply with GST rules and regulations to avoid any issues.
By meeting these criteria, you can potentially simplify your tax management and enjoy the benefits of a single GST registration.
Conclusion
With the aforementioned procedure, you can add your multiple businesses under the same GST number. It is, however, important that you hire experts to register and handle your GST registration. GST experts at Vakilsearch will handle all your issues concerning GST in a proper, legal, timely, and hassle-free manner. Therefore, you can trustfully leave all the taxation issues to Vakilsearch and instill your focus on the core activities of your business.
FAQs
Is it possible to register and manage multiple businesses under the same GST number?
Yes, businesses can register and manage multiple businesses under the same GST number, providing benefits such as reduced compliance and simplified operations.
What are the advantages of adding multiple businesses under the same GST number?
The advantages of adding multiple businesses under the same GST number include decreased complexity, reduced compliance requirements, and the ability to expand business operations without administrative hassle.
Who is eligible to add multiple businesses under a single GST number?
Businesses with multiple branches, business verticals, or entities in the same state are eligible to add them under a single GST number.
What are the implications for input tax credit when multiple businesses are added under a single GST number?
Adding multiple businesses under a single GST number can impact input tax credit, and businesses should maintain separate records and accounts for each unit to ensure compliance and transparency.
Are there any limitations on the types of businesses that can be added under the same GST number?
The businesses added under the same GST number should be within the same state, and certain entities, such as those registered under the GST Composition Scheme, may have restrictions.
Can businesses in different states be added under the same GST number?
No, businesses in different states cannot be added under the same GST number. GST registration is state-specific, and separate registrations are required for businesses in different states.
What documents are required to add a new business under an existing GST registration?
The specific documents required may vary, but generally, businesses need to submit the necessary forms and documentation to add a new business under an existing GST registration.
Is there a separate GST return filing process for each added business or a consolidated filing?
Businesses can choose to file separate returns for each added business or opt for a consolidated filing, depending on their preferences and operational structure.
Are there any additional compliance requirements when managing multiple businesses under one GST number?
While there are benefits, managing multiple businesses under one GST number can also lead to increased administrative burden and the need for maintaining separate records and accounts for each business unit.
How can I update or remove a business from the GST registration if needed?
Businesses can update or remove a business from the GST registration by following the prescribed procedures, which may involve submitting relevant forms and documentation to the GST authorities.
Can a single person have multiple GSTINs?
Yes, a single person can have multiple GSTINs if they operate multiple business verticals in different states. Each GSTIN is unique to a state or Union Territory (UT), ensuring compliance with GST regulations specific to that region.
Can a company have 2 GST numbers in different states?
Yes, a company can possess multiple GST numbers (GSTINs) in different states of India. This allows businesses operating across state boundaries to comply with state-specific GST regulations and manage tax filings accordingly.
What is the threshold limit for GST registration in different states?
The threshold limit for GST registration varies across states in India. Generally, businesses engaged in the supply of goods must register for GST if their aggregate turnover exceeds ₹40 lakhs (₹10 lakhs for special category states). For service providers, the threshold is ₹20 lakhs. Threshold limits may differ for certain states based on their economic activities and specific GST regulations.
