Take separate GST number

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A distributor with a turnover over 10 Cr per annum, currently filing regular GST returns, is looking to enter building construction. They need advice on whether to use their existing GST number or obtain a separate one for the construction business. The concern is that input tax credits should not be claimed for construction work, and the applicable GST rate is 1% or 5%. Using the same GST number could lead to confusion in returns and potential queries from the tax department. The advice suggests that since GST is PAN-based, if the organisation's PAN is the same for both businesses, they might be able to register construction as an additional place of business under the existing GST number.

YELLANKI RATHNAGIRI

YELLANKI RATHNAGIRI (Querist)
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05 February 2020 Dear all,

my dealer is distributor and his turnover is more than 10Cr Per annum, he is filing regular gst returns

now he wants to enter in construction (building construction) works

gst input should not take in building construction work, and he has to pay 1% or 5% gst tax on sales

please advise me
can he continue with same gst number which gst number is using for distribution business
or
is he needed to take separate GST number (as vertical business)

because input should not take in construction work and should take in distribution
data may be clumsy for gst returns & may get call from department for clarification

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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05 February 2020 Take seperate gst reg no.

Amol S Joglekar

Amol S Joglekar (Expert)
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06 February 2020 GST is PAN based so you need to check the form of organisation.
If PAN is same, both for distribution as well as construction business, you can think of additional place of business for construction business

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