Can a person obtain more than one GST registration in a state or Union territory (UT)?

GST is one of the most revolutionary tax regime in the history of India, which came with the motto “One Nation One Tax”. GST which is Indirect tax in nature is linked to the PAN which is base of Direct Taxes. Let us understand the basic concept of GST registration:

1. As per Sec -25(1) of CGST Act,2017 Every person who is liable for GST Registration under this Act shall apply for Registration in every such state or union territory in which he is liable for registration.

For Eg: If a person carrying on a trading business in two different states say Delhi, Mumbai and liable for registration under this act, then the person has to apply for registration in each such state and GST registration will be granted accordingly. Since GST registration is based on PAN, GST registration will be granted in each such state under the same PAN number of the person.

2. Normally A person can obtain only Single GST Registration in a state or union territory under this act.

Provided that a person carrying on multiple business verticals in a state or Union territory may be granted a separate GST registration for each such business vertical subject to such conditions – As per Sec 25(2).

3. From the above it is clear that a person can obtain multiple GST registrations with same PAN in a state or union territory.

Definition of Business Vertical:

As per section 2 (18) of CGST Act, 2017

“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 is subject to risks and returns that are different from those of the other business verticals.

Explanation-For the purposes of this clause, factors that should be considered in determining whether goods or services are related include

 (a) the nature of the goods or services;

 (b) the nature of the production processes;

 (c) the type or class of customers for the goods or services;

 (d) the methods used to distribute the goods or supply of services; and

 (e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities

Conclusion

GST Registration is PAN based & state specific, however more than one GSTIN can be obtained in a single state or union territory if a person carries on multiple business verticals or having multiple branches within the state or union territory as the case may be.

Points to be noted in case of obtaining more than one GST registration

  • The business should meet the criteria of Business vertical as defined u/s 2(18)
  • Composition scheme cannot be obtained by a business vertical if any of its other business vertical has became ineligible to pay tax under composition.
  • Tax invoice has to be issued and tax has to paid under this act on supply of goods or services or both by registered business vertical to another registered business vertical of such person.

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16 Comments

  1. ESWARABABU PUSARAPU says:

    I AM A TAX CONSULTANT, AND I HAVE FOUND TODAY ONE PERSON (INDIVIDUAL) HAS A GST LICENCE, AND ITS NUMBER IS 37**********2ZA. I THINK IF 2 COMES AFTER PAN HE HAS TWO GST LICENCES, AND I ASKED HIM THAT DO YOU HAVE ANOTHER BUSINESS, BUT HE TOLD NO, I HAVE ONLY ONE GST LICENCE, PLEASE TELL ME WHETHER HE OR IAM WRONG.

    1. Venkat _10 says:

      The 13th digit in 15 digit GSTIN indicates the number of GST registrations within the state. Further you can check the GSTIN registered with the PAN number through the GST portal under services tab.

    1. Venkat _10 says:

      One registration can be taken for similar business within the state and the core goods & services should be amended accordingly in the GST application. It is advisable to apply for Different GSTIN with different businesses considering the inputs to be used, eligibility of ITC, proportion of Outputs.

  2. Sujit Sarkar says:

    By mistake I got two gst I’d but I had submitted my gst return using one of.Now I have received a mail for not submitting my return with the other gst I’d.Pls suggest how to cancel the other gst I’d.Thanks

  3. Suneel says:

    1. can a person registered as a regular tax payer in a state get another registration under composition scheme in the same state ?
    2. what is the Solution of the above Problem ?

    1. CA Ashutosh Kumar says:

      No, a person registered as a regular tax payer in a state cann’t get another registration under composition scheme in the same state or Even in the Different State.
      A person has to obtain Registration either as a composite taxable person or as a regular tax Payer on PAN India Basis.
      Registration based on same PAN can not have both the Option.

  4. prachi shinde says:

    can a person registered as a regular tax payer in a state get another registration under composition scheme in the same state ?

  5. Hemagiri says:

    I have a proprietorship concern and I have taken GST registration for my Proprietorship with Hemagiri&Associates my state.

    Now, can I take one more GST registration with my name Hemagiri in the same state?

  6. chetan Lohia says:

    can a person registered under composition scheme in a state get another registration as a regular tax payer in the same state ?

    1. Venkat _10 says:

      No, A person who is already registered under composition scheme applying for new registration cannot opt for regular scheme.while applying new registration, Composition scheme will be enabled by default in the application form for GST registration.

  7. Venkat _10 says:

    The definition u/s 2(18) has been omitted vide CGST Amendment Act,2018, however the commencement date of such Amended is yet to be notified.This can be viewed as to make GST registrations liberal but rules governing such amendment will clarify the same.

    1. Bharat Gudla says:

      The impact would be, now a person can obtain multiple registrations for more than 1 POB (even though under same business vertical) now the vertical doesnt matter. If the premise is different it would be eligible for separate registration.

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