Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

Same PAN and different GSTIN

Suthaniya P (170 Points)

20 January 2025

Please explain.Business vertical in GST important conditions with Section and Rule.

Reply
Follow
Share

2 Replies

Rama chary Rachakonda (Master in Accounts & high court Advocate) (8565 Points)
Replied 20 January 2025

Business Verticals in GST A business vertical refers to a separate unit or division within a larger organization that operates independently, providing distinct goods or services.

Important Conditions for Business Verticals The following conditions must be met for a business vertical to be considered a separate entity for GST purposes:

1. _Distinct business activities_: Each business vertical must engage in distinct business activities, such as manufacturing, trading, or providing services. (Section 2(18) of the CGST Act, 2017)

2. _Separate accounting and records_: Each business vertical must maintain separate accounts and records for GST purposes. (Rule 8 of the CGST Rules, 2017)

3. _Separate GST registration_: Each business vertical may require separate GST registration, depending on the state or union territory where it operates. (Section 25 of the CGST Act, 2017)

4. _Independent decision-making_: Each business vertical must have independent decision-making authority, including financial and operational decisions. (Section 2(18) of the CGST Act, 2017)

5. _No commingling of funds_: Each business vertical must maintain separate funds and not commingle them with other business verticals or the parent organization. (Rule 8 of the CGST Rules, 2017) Relevant Sections and Rules The following sections and rules of the CGST Act, 2017, and CGST Rules, 2017, are relevant to business verticals: - Section 2(18): Definition of "business vertical" - Section 25: Registration -

Rule 8: Accounts and

2. _Maintain proper documentation_: Keep accurate and detailed records of each business vertical's activities, accounts, and GST compliance.

By meeting these conditions and maintaining proper documentation, businesses can ensure compliance with GST regulations for their business verticals.

Suthaniya P (170 Points)
Replied 21 January 2025

Thank you.

CCI Pro

Recent Topics

More recent discussions | Post

Related Threads

Popular Discussion

Start a New Discussion

CCI Pro

Meet our PRO Members

GIRISH VIJAYAN

PRO MEMBER

Sunil

PRO MEMBER

Sunaram Marndi

PRO MEMBER

HIREN C SANGHAVI

PRO MEMBER

CA Shashikant Lonikar

PRO MEMBER

Subscribe to CAclubIndia Pro

Trending Online Classes

GST Demands and Recoveries: Navigating Through the Tides

CA Nipun Arora

Enroll Now

17 July 2025
Fake ITC & Penalties under GST Act - Patanjali Ayurveda Case

CA Shruti Singhal

Enroll Now

25 July 2025
Certification Course on GSTR-3B Reconciliation with GSTR-2B through AI Tools

CA Deepak Gupta

Enroll Now

15 July 2025

view all classess

Follow us

Subscribe to the latest topics :

Search Forum:

Forum Home

Popular Threads

Recent Posts

Unreplied Threads

Settings