Separate GST registration can also be obtained for branches within a state for businesses having multiple business verticals. For GST registration to be issued for branches within a state, the following conditions must be satisfied:
Have more than one business vertical. “Business vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which are subject to risks and returns that are different from those of the other business verticals.
The business must not be registered to pay tax under the GST Composition Scheme.
All separately registered business verticals must pay tax on supply of goods or services to another registered business vertical of the same business and issue a tax invoice for such supply.
As per the Proviso of SECTION 10(2) of the CGST Act 2017, a person who have registered u/s 10(1) of the CGST Act 2017 i.e. COMPOSITION SCHEME, cannot opt for Regular Scheme under same PAN for different Business Vertical or in a different State. He have to opt for Composition Scheme for all his Business Verticals/Branch under same PAN, failing which he cannot opt for Composition Scheme.
EXTRACT FROM THE CGST ACT :
"Provided that where more than one registered persons are having the same Permanent Account Number (issued under the Income-tax Act, 1961), the registered person shall not be eligible to opt for the scheme under sub-section (1) unless all such registered persons opt to pay tax under that sub-section."
Regards.
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