Goods and Service Tax (GST) is an indirect tax in India imposed when a customer buys a good. GST is regarded as an indirect tax imposed on the sale, manufacture, buying of goods. The aim of GST is to remove all the indirect taxes imposed on goods by the Indian Central governments and State governments.
The current situation of India is that there are taxes present at various rates and in different stages like the Centre has the taxes like Service tax, Income tax, Central sales tax, Security transaction tax etc. and on the other hand the State has entry tax, agriculture tax, property tax. The increasing of taxes at different level affecting the selling as well as the rates in domestic and in the international markets.
In keeping the federal structure of India, it is proposed that the GST will be issued both by the Central Government (CGST) and the State Government (SGST). Prime Minister Narendra Modi introduced GST in India on the midnight of 1st July 2017.The development of GST took many negotiations as well as revisions before getting launched in India in its final form in the year 2017.
A person can acquire only a single GST Registration in a state or union territory under the GST act. If a person starting on multiple business verticals in a state or union territory may be allowed a separate GST registration for each such business vertical subject to such conditions as per Section 25 (2).
According to the above discussion it is clear that a person can acquire multiple GST Registration with same PAN in a state or union territory.
Some important points to be noted in case of acquiring more than one GST Registration are:
a) Firstly, the business must meet the criteria of Business Vertical as mentioned u/s 2(18).
b) Scheme of composition cannot be acquired by a business vertical if any of its other business vertical has became unqualified to pay tax under composition.
c) Tax invoice has to be provided and tax has to be paid under this act on supply of goods or service or both by registered business vertical to another registered business vertical of such person.
However, GST Registration is based on PAN and specific to state. So, more than one GSTIN can be acquired in a single state or union territory if a person bears on multiple business verticals or having multiple branches within the state or union territory.
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