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Different business verticals

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unnikrishnan P

Tax Practitioner

228 Points Posted on 22 October 2024

Dear friends,

One of my client had taken GST registration for his trading business in hardware items. He is also having cab services earlier in parallel. My query is whether we have to account the service income received from cab services together with trading income from business in GSTR-1? Registration had been taken only for trading business but both business are under same PAN.

Requesting for your valuable response.

Replies (2)

Quick Summary

This discussion clarifies how to handle GST for a client with two distinct business verticals operating under the same PAN: hardware trading and cab services. The advice given is that income from the cab services should not be included in the GSTR-1 filed for the hardware trading business, as GST registration was only obtained for the latter. It's recommended that the cab services obtain their own GST registration. Alternatively, if the client wishes to consolidate, they can apply for a separate registration for the cab services or explore options for a single registration covering all businesses under the same PAN, though separate reporting is advised for now.

Rama chary Rachakonda

Master in Accounts & high court Advocate

9620 Points Posted on 22 October 2024

Since the GST registration is only for the trading business in hardware items, you should not account for the service income from cab services in GSTR-1.

GSTR-1 is used to report supplies (sales) related to the registered business, which in this case is the trading business.

The cab services are a separate business and require a separate GST registration.

Since they are under the same PAN, your client should consider registering the cab services under GST as well.

If your client wants to consolidate both businesses under a single GST registration, they can apply for a separate GST registration for the cab services or opt for a single registration for all businesses under the same PAN.

However, currently, you should only report the trading income from the hardware business in GSTR-1 and maintain separate records for the cab services. Consult a tax expert or the GST helpdesk for further guidance.