Under any tax structure one of the most important aspect is registration. Registration not helps to identify tax payers but also ensures tax compliance.
GST Registration requires to be taken if the aggregate annual turnover exceeds the prescribed threshold limit of Rs.20 lakhs or the dealer falls under the category of compulsory registration.
Registration comprises of obtaining a 15 digit unique identification number called GSTIN from the tax authorities. It is alloted based on PAN of the business entity. The 13th digit signifies the number of registrations in the same state for a single PAN.
GST Registration is PAN based and State specific. More than 1 GSTIN can be taken on a single PAN Card. Let us understand various scenarios to make these statements more clear:
Case 1: Branch in Same State
A business that has its Head Office and branches in the same state can obtain a single registration declaring one office as the principal place of business. In this case, a single business entity with a unique PAN will have a single registration of the state in which its office is located.
Case 2: Branch in Multiple States
A business that has a Head Office in one state and branches in other states must obtain registration a separate registration for every state in which the branch is situated. In this case, a single business entity with a unique PAN will have more than one registration on the same PAN.
Case 3: Business Verticals
A business may have business verticals i.e. distinguishable components engaged in business activities different from each other. In a single business. there can be a manufacturing and trading units which can be considered as business verticals.
In this case, more than one registration can be obtained even when the Head Office and branches are located in the same state.
However, the following points must be noted:
- In case of business verticals, the annual turnover of all the verticals would be aggregated to determine the threshold limit of Rs.20 lakhs for GST Registration.
- The business verticals cant opt for composition Scheme if the turnover of each vertical is less than specified limit but the aggregate turnover of all the verticals exceeds the specified limit.
- If the dealer opts for Composition Scheme, it must be obtained for all the business verticals under the same PAN.
1.So one may have two Registration with same pan if there is different Business Verticals(Within Same State)
2.If the dealer opts for Composition Scheme, it must be obtained for all the business verticals under the same PAN.So one business regular and other business composite option is not allowed in GST.
Hope my answer clears the situation.!
KAAMIL AHAMADH (AR-RAHMAAN EFILING TEAM)