Direct Tax
Consulting
ESG Advisory
Indirect Tax
Growth Advisory
Internal Audit
BFSI Audit
Industry Audit
Valuation
RBI Services
SEBI Services
IRDA Registration
AML Advisory
IBC Services
NBFC Compliance
IRDA Compliance
Finance & Accounts
Payroll Compliance Services
HR Outsourcing
LPO
Fractional CFO
General Legal
Corporate Law
Debt Recovery
Select Your Location
As per the GST Act, the business entities operating in two different states must obtain separate GST numbers. The article talks about the provisions related to GST registration for branches & business verticals.
All the businesses whose turnover exceeds Rs 40 lakhs in a financial year must obtain GST numbers by registering themselves as normal taxpayers. However, if you have a business in Northeastern states, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand, the threshold limit is Rs. 10 lakhs. For the services providers, the turnover limit is Rs. 20 lakhs and Rs. 10 lakhs for special category states.
Under this Act, there is no explicit meaning of the term business branch. However, in general terms, it can be defined as a branch office in some other location other than the main office, where the same business is conducted.
Business Vertical is defined under Section 18 of the Central Goods and Services Tax Act, 2017[1]. The section states that a different part of the company that is engaged in the supply of individual goods or services or a group of related goods & services, subject to certain risks & returns different from that of business verticals.
The documents required for GST registration are:
The taxpayers must obtain GST registration under the GST in each State or Union Territory to supply goods and services.
For example, there is a chain of restaurant, and it is operational in Delhi, Maharashtra, and Chandigarh, then separate GSTIN number must be obtained for all the states.
GSTIN format
Let us now understand the GSTIN format.
Let’s take an example: 27MHCQ04111A2Z5
As shown in the picture above, the GSTIN number is given.
Let us now split the code:
It is important to have separate GST registration operating in different states because the first 2 digits of the GSTIN number would change.
If more than one GST registration within a state, the entity code will change; the rest remains the same.
Separate GST registration for business verticals or branches within the same state can be made via Form GST REG – 01. This FORM is applied by all the businesses seeking GST registration for branches or business verticals.
The business has to satisfy the following conditions to get GST registration for business verticals and branches:
Separate GST registration for business verticals or branches within the same state can be made via Form GST REG – 01. This FORM is applied by all the businesses seeking GST registration for business verticals or branches.
The application for GST registration is submitted, it was sent to the officer for verification & it takes about 7 days to finish the process & GST certificate generation.
The GST certificate must show the principal place of the additional place.
According to the CGST Act, all suppliers must obtain GST registration to supply goods and services. It is concluded in the article that separate GST registration for business verticals or branches within the state or different states is necessary to maintain transparency.
Therefore, it is rightly said that if one is planning to expand the business, he needs to understand the need to be compliant with various Acts.
Read our article:GST Registration for Sole Proprietorship: Here’s all you need to know
Are your GAIL India Limited shares now eligible for transfer to the IEPF Authority, or have the...
India's financial sector is changing due to advancements in technology and new regulations. GIF...
The Indian startup ecosystem, which is the third-largest in the world, is expected to become a...
India's startup ecosystem has recently experienced a rapid rise as a global powerhouse. Several...
In the Union Budget 2024, Finance Minister Nirmala Sitharaman announced several changes to the...
Are you human?: 2 + 8 =
Easy Payment Options Available No Spam. No Sharing. 100% Confidentiality
Goods and Service tax is the indirect tax levied in India on the supply of goods and services and subsumes all indi...
05 Jan, 2021
Thе GSTN has rеcеntly startеd sеnding out SMS to taxpayеrs informing thеm about discrеpanciеs bеtwееn t...
30 Mar, 2024