GST is a number dependent on PAN. The first 2 digits are the state the dealer is registered in.A copy of the PAN number is the next 10 digits.The 13th digit is the number of verticals that the distributors have.14th digit is spare to take care of future need/s if any, and the 15th digit is a number for testing.
Sections 22 and 24 of the CGST Act 2017 deal with statutory GST registration requirements. Section 22(1) of the CGST Act, 2017 reads as follows:(1) Each distributor shall be subject to be licensed in the State or territory of the Union under this Act, except in special category States, from which he allows a taxable supply of products or services, or both, if his aggregate turnover crosses 20 lakhs of rupees in a financial year.
Yes, if the two companies are based in the same state, you can have one GST number for each of them. According to Sec 25 of the CGST Act, it is necessary to obtain multiple business registration numbers under the same PAN in multiple states. However, assessments can also obtain separate registration for the various business verticals in the same state. But this is optional altogether.Where such person has made a taxable supply of goods or services, or both, from any special category State, he shall be liable for registration if his aggregate turnover exceeds ten lakhs of rupees in the financial year.
If you’re after specific registration for various business verticals, it will raise the cost of your administration such as no. of returns filing. Your organization verticals will also be viewed as two separate entities, if you want to move any items from one branch to some other branch, even on these transfers, GST will also become payable.Because, with the different GST number, keeping the financial reports independently for both organizations would be simple. Besides this, it is also beneficial for the purpose of evaluation.That being said, Section 25(2) of the CGST Act, 2017 provides that, given that an individual with various business verticals in a State or Union territory may be issued a separate registration for each business vertical, subject to such following terms and conditions, there is no bar for doing different business with one GST registration, in view of the above provisions of the law.
In my view, you can go for a different GST number if you want to run your company separately, but if you don’t want to raise your administration costs, it would be easier to have a single GST number.