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.
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
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.