Term Separate registration for multiple business under GST

Meaning of Separate registration for multiple business under GST

 

This post explains about Separate registration for multiple business under GST. 

Separate registration for multiple business verticals within a State or a Union territory

Any person having multiple business verticals within a State or a Union territory, requiring a separate registration for any of its business verticals under sub-section (2) of section 25 of CGST Act, shall be granted separate registration in respect of each of the verticals subject to the following conditions:

  1. Such person has more than one business vertical as defined in clause (18) of section 2 of CGST Act;
  2. No business vertical of a taxable person shall be granted registration to pay tax under section 10 if any one of the other business verticals of the same person is paying tax under section 9.

Explanation. - Where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other business verticals of the said person shall become ineligible to pay tax under the said section.

  1. All separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.

A registered person eligible to obtain separate registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such vertical.

The provisions of rule 2 and rule 3 relating to verification and grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.

 

Procedure for registration

  1. Every person who is liable to be  registered under section 22  or  section 24  shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be  prescribed:

Provided that a casual taxable person or a non-resident taxable person shall apply for registration at least five days prior to the commencement of  business.

Explanation - Every person who makes a supply from the territorial waters of India shall obtain registration in the coastal State or Union territory where the nearest point of the appropriate base line is located.

  1. A person seeking registration under this Act shall be granted a single registration in a State or Union territory:

Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed.

  1. A person, though not liable to be registered under section 22 or section 24 may get himself registered voluntarily, and all provisions of this Act, as are applicable to a registered person, shall apply to such person.
  2. A person who has obtained or is required to obtain more than one registration, whether   in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.
  3. Where a person who has obtained or is required to obtain registration in a State or Union territory in respect of an establishment, has an establishment in another State or Union territory, then such establishments shall be treated as establishments of distinct persons for the purposes of this Act.
  4. Every person shall have a Permanent Account  Number issued under the Income-tax Act, 1961 in order to be eligible for grant of  registration:

Provided that a person required to deduct tax under section 51 may have, in lieu of a Permanent Account Number, a Tax Deduction and Collection Account Number issued under the said Act in order to be eligible for grant of registration.

  1. Notwithstanding anything contained in sub-section (6), a non-resident taxable person may be granted registration under sub-section (1) on the basis of such other documents as may be prescribed.
  2. Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer may, without prejudice to any action which may be taken under this Act or under any other law for the time being in force, proceed to register such person    in such manner as may be prescribed.
  3. Notwithstanding anything contained in sub-section (1),––

any specialised agency of the United Nations Organisation or any Multilateral Financial Institution and Organisation notified under the  United Nations (Privileges and Immunities) Act, 1947, Consulate or  Embassy of  foreign countries; and

any other person or class of persons, as may be notified by the Commissioner, shall be granted a Unique Identity Number in such manner and for such purposes, including refund of taxes on the notified supplies of goods or services   or both received by them, as may be prescribed.

  1. The registration or the Unique Identity Number shall be granted or rejected after due verification in such manner and within such period as may be prescribed.
  2. A certificate of registration shall be issued in such form and with effect from such date   as may be prescribed.
  3. A registration or a Unique Identity Number shall be deemed to have been granted after the expiry of the period prescribed under sub-section (10), if no deficiency has been communicated to the applicant within that period.

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