GST Applicability on two separate firms owned by same person
This query is : Resolved
15 February 2023
Dear Experts
I have an existing proprietary firm (offering business consulting) which is below threshold limit of 20Lac & hence out of GST purview.
I am planning to start another proprietary firm for a technology-based business which will be in my name.
1) Will GST Act be applicable due to both firms owned by a single person
2) If both firms turnover crosses Rs 20 Lac but individually their business is below Rs 20 Lac, will GST become applicable
3) Is it advisable to open the 2nd firm in some other person's name so as to completely by-pass any possibility of clubbing of firms under GST.
Thank you in advance !
I have an existing proprietary firm (offering business consulting) which is below threshold limit of 20Lac & hence out of GST purview.
I am planning to start another proprietary firm for a technology-based business which will be in my name.
1) Will GST Act be applicable due to both firms owned by a single person
2) If both firms turnover crosses Rs 20 Lac but individually their business is below Rs 20 Lac, will GST become applicable
3) Is it advisable to open the 2nd firm in some other person's name so as to completely by-pass any possibility of clubbing of firms under GST.
Thank you in advance !
15 February 2023
1. GST will be applicable whenever the aggregate supply of both/either firm cross rs. 20 lakhs in first year.
2. Once registered under GST you are liable for GST payment from even supply of one rupee.
3. Good idea, as the PAN will be different, so basic exemption limit will not get clubbed.
2. Once registered under GST you are liable for GST payment from even supply of one rupee.
3. Good idea, as the PAN will be different, so basic exemption limit will not get clubbed.
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