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.
Overview
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 know 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 branches and businesses to one GST registration is undoubtedly truly supportive of business expansion and diversification. It favours 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 to 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.
What Is the Step-By-Step Procedure to Add Multiple Businesses to One GSTIN?
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 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.
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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 Karanataka.
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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).
Conclusion
With the aforementioned procedure, you can add your multiple businesses to the corresponding GSTIN. 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 a single GST number?
Yes, businesses can register and manage multiple branches or entities under a single 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.
