NEW PROVISIONS RELATING TO THE SEPARATE REGISTRATION FOR MULTIPLE PLACES OF BUSINESS WITHIN THE STATE OR UNION TERRITORY
Section 25 of the CGST Act, 2017 contains the registration provisions and as per section 25 (2) of the CGST Act, 2017 the person shall be granted a single registration in a State or Union territory.
The proviso to section 25 (2), however, deals with the registration provision in case of the person who is having different units in the same State or Union territory.
The said proviso has under gone an amendment and the said amendment along with the earlier provision (striped off) is being provided hereunder –
‘Provided that the person having multiple business vertical places of business in a State or Union territory may be granted a separate registration for each such business vertical place of business, subject to conditions as may be prescribed.’
The effect of the above amendment is that from 1st February, 2019, the person who is having multiple places of business can obtain a separate registration for each place of business, however, the conditions prescribed under rule 11 of the Central Goods and Service Tax Rules, 2017 needs to be fulfilled.
ENTIRE RULE 11 SUBSTITUTED EFFECTING SEPARATE REGISTRATION FOR MULTIPLE PLACES OF BUSINESS WITHIN A STATE OR A UNION TERRITORY –
In order to give the effect to the above amended provisions, entire rule 11 has been substituted vide the Central Goods and Service Tax (Amendment) Rules, 2019 made effective from 1st February, 2019.
The provisions of substituted rule 11 are featured hereunder –
TRANSFER OF INPUT TAX CREDIT ON OBTAINING SEPARATE REGISTRATION FOR MULTIPLE PLACES OF BUSINESS WITHIN A STATE OR A UNION TERRITORY –
New rule 41A has been inserted into the Central Goods and Service Tax Rules, 2017, vide the Central Goods and Service Tax (Amendment) Rules, 2019 effective from 1st February, 2019, which deals with the provisions relating to the transfer of input tax credit in case of the registered person who has obtained a separate registration for the multiple places of business within a State or Union Territory.
New rule 41A basically covers the process of the transfer of input tax credit to the new registered unit and the same is narrated hereunder –
A registered person who has obtained a separate registration for multiple places of business and intends to transfer the unutilized input tax credit lying in electronic credit ledger to the new registered unit;
The registered person is required to furnish details in FORM GST ITC-02A within a period of 30 days from the date of obtaining separate registration.
FORM GST ITC-02A can be submitted either electronically through the common portal or through a Facilitation Centre notified in this behalf.
The input tax credit can be transferred to the new registered unit in the ratio of the value of an asset which is being held by it at the time of obtaining the registration.
Once the application in FORM GST ITC-02A is filed by the registered person, the new registered unit is required to accept the details and upon acceptance the input tax credit balance as specified in FORM GST ITC-02A would be credited to the electronic credit ledger of the new registered unit.