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How to Avail Two GST Registration on One PAN Card

The Goods and Service Tax (GST) is a value-added tax inflicted on the supply of non-exempted goods and services. GST was implemented with an aim- One Nation One Tax, as it replaces various indirect taxes such as CST, service tax, VAT, and many more. According to the Section 25 (1) of the CGST Act, GST registration is essential to all the suppliers of non-exempted goods & services regardless of their business location. GSTIN portal is an online platform where the taxpayer can submit their application regarding GST registration.

As per the Income Tax Act of 1961, a PAN is an accomplished necessity for business owners operating in India. The PAN helps the income tax department to identify the financial loopholes triggered by the faulty or delayed transactions. Apart from filing the IT return, most companies use the PAN card to receive invoices & remittances. In a brief, no business entity can get tax benefits in the absence of a PAN card.

GST Registration and PAN card

GST is an indirect tax that collects all taxes under one roof, whether direct or indirect. GST registration no. incorporates PAN details, which deals with direct taxes. For the time being, the GST Act would not allow any taxpayer to avail two GST numbers against a single PAN card if the trading of non-exempted goods and services is limited to a single state or UT. On the contrary, if the supplier is engaged with inter-state trading, then he/she can get separate GST registration for both the states i.e., 2 GST registration on one PAN card.

There is another condition when taxpayers can apply for two GST registration for one PAN card.

This is possible when a supplier is dealing with various business verticals in one state or Union Territory. In such conditions, a separate GST registration is compulsory for each of the business verticals. The taxpayer who wishes to secure separate registration regarding the place of business should essentially apply the Form GST REG-01.

What are the Conditions for Getting Two GST registration on one PAN card?

  • The taxpayers should be dealing with inter-state supply to get separate GST registration.
  • A person who is managing multiple places of business in a given territory will be allowed a separate registration.
  • Any branch of the business is working under the composition scheme is not allowed to avail separate GST registration.

What is the Business Vertical?

According to the CGST Act, 2017[1] – the section 2 (18), the term Business Vertical is referred to as a distinguishable component of an enterprise that provides deals with the supply of goods and services. The act explains the following conditions needs to meet for new vertical registration under GST.

  • The production process’s Type
  • The services or good’s Type
  • Type of customer-base reaping the services
  • Distribution channel’s type
  • Regulatory or statutory environment’s type for supporting the business verticals

What is the Rule 11- CGST Rules, 2017?

There are a certain set of rules that have been set by this law regarding the separate GST registration for business verticals operating in the same State or Union Territory. Rule 11 (1) further add some guidelines with respect to a new vertical. Those rules are given below:-

  • A person seeking separate registration should have multiple business verticals (precisely more than one) according to the provision of section 2 (18) of the act.
  • An applicant cannot go for registration under section 10 if the remaining business vertical of such an applicant already secured this registration.
  • Section 9– The person operating with various business verticals needs to cater to tax liabilities under the act on the supply of goods or services provided to other verticals of business. The provision also stresses on the issuing of invoice in this reference.
  • Rule 8(1), CGST Act 2017 – A separate GST registration is essential for the taxpayer who wants their business unit to be identified outside the Special Economic Zone.

What are the Important Points Regarding Multiple GST Registrations?

  • Your business should meet the conditions mentioned above if it wishes for multiple GST registrations.
  • Additionally, if one of the business verticals is not serving the provision of GST, you cannot apply for composition scheme under GST for a specific business verticals.
  • The company need to comply with the GST compliances on account of issuing the tax invoice or tax filling for the supply of goods and services within the business verticals.

The Final Words

The above information clearly indicates that the provision for two GST registration on one PAN card is 100% feasible & practical. Taxpayers who need separate registration in case of the inter-state supplies or multiple businesses vertical, they need not to adopt different approaches for the approval. The registration procedure is more or less the same in this case as well. However, there is a distinct provision that a taxpayer needs to fulfil to assure the conformity with the law.