Is 2 Gst Registration Possible On One Pan Card

Q: Is 2 GST Registration possible on one pan card?

Revenue secretary Hasmukh Adhia clarified it on July 7, 2017, that GST law allows only one registration against a PAN, but firms or businesses or companies with multiple business verticals can choose to apply for multiple registration numbers against a corresponding PAN number.

The Goods and Service Tax (GST) is an indirect pay tax levied on the supply of goods and services dependent on destinations. It is replaced by a lot of indirect taxes like VAT, service tax, CST, excise duty, etc. The Government enacted the CGST Act with effect from 1 July 2017, to introduce GST as a comprehensive indirect tax.

Hasmukh Adhia stated multiple registrations under one PAN allowed

Revenue secretary Hasmukh Adhia clarified it on July 7, 2017, that GST law allows only one registration against a PAN, but firms or businesses or companies with multiple business verticals can choose to apply for multiple registration numbers against a corresponding PAN number.

In India, all the business entities coming under the threshold limit of Rs 20 lakh so that business registered under the GST legislation. Registration under GST of any business entity obtaining a 15 digit unique identification number GSTIN encrypted with PAN (Permanent Account Number).

This registration process is known as the GST registration process. It can easily be done online on the GST registration site. Section 25(1) of the CGST Act states that an individual/business entity should apply for GST registration in any State / Union territory where the individual/business entity may register. Since GST registration is based on PAN, so multiple GST is allowed for multiple business verticals.

As required by the Income Tax Act 1961, a PAN is a must for all individuals, companies, partnerships, and so on. The IT Department tracks all financial transactions using PAN. An online pan card also helps a company to receive various remittances and invoices, as well as to filing IT returns. If a person is without a PAN, the tax incentives provided by the government can not be enjoyed and he/she will be liable to pay taxes at the highest available rate. If a person do not have a PAN card yet, it is high time for him to apply online for a pan card.

The GST regime took effect under the motto "One Nation, One Tax." Under one umbrella it wanted to have both direct and indirect taxes. By its nature, GST is an indirect tax. This is linked to PAN which is based on direct taxes.

A person usually only obtains one GST registration in a state or UT if his company is limited to that state / UT. But if he operates in two or more States / UTs, he is liable in each of these states / UTs for GST registration. For example, if a person is engaged in trading business and trades in both Jaipur and Patna, then that person would have to apply in both these states for GST registration.

Now, GST is connected to the online pan card. There will be 2 GST numbers allotted for the person in two different cities for example. Nevertheless, all of them will be related to the same PAN that a person holds. It indicates that one PAN card will accommodate 2 GST registrations. It is an example where multiple GST registration is a must.

Another example is that 2 GST registration can be a matter of preference on one PAN card. This happens when a person in a particular state or UT has more than one vertical business. In such a scenario, the person may opt for separate GST registrations for each of these verticals, subject to the conditions set out in Section 25(2) of the CGST Act.

Business Vertical means a unique distinguishable component of a business enterprise that is engaged in providing individual services/goods or services/goods related to them.

Factors which determine whether service or goods are related to them

Nature of the Production Process.

Goods and Service type

Type of customers who are availing the goods and services.

The method used for supplying service or goods distribution.

Nature of statutory authority.

While obtaining Multiple GST registration these important points must be taken into note

The business should meet the criteria of Business Vertical

If all of the other business verticals are no longer liable to pay tax under the composition, you cannot make use of the Classification System against a single business vertical.

You may issue tax invoices or pay tax (as laid down in the CGST Act) on the delivery of services and/or products within your own registered business verticals.

The Government of India introduced the composition scheme to assist small business taxpayers and reduce the compliance burden. A micro small scale business owner under a composition scheme is required to maintain fewer documentation records/books of accounts and not required to file monthly returns.

However, in the 32nd GST Council Meeting, it has been declared that the composition scheme will now be available to service providers too.

The scheme for service providers is available from 1 April 2019. The article details the conditions to opt into the scheme by service providers.

So any person in India who engages in economic activity including trade and commerce is treated as a taxable person under the GST council under the GST act 2017. E-registration will guide you in getting all necessary help required to GST registration, GST filing, GST return. If you have any queries related to GST just fill up the form.

Written by Gazal Gupta