GST Registration for Branches & Business Verticals
According to the CGST Act, suppliers of taxable goods and services are required to be registered under GST in the State or Union territory, from where the taxable supply of goods or services is made. Further, provisions have been provided in the GST Registration Rules for obtaining GST registration for branches. In this article, we look at GST registration for branched in detail.
GST Registration for Branches in Different States
GST registration should be obtained by a taxable person under GST in each of the State or Union Territory, from where taxable supply of goods or services is made. For example, if a restaurant operates in the States of Maharashtra and Delhi, then separate GSTIN would have to be obtained for Maharashtra and Delhi.
As shown in the GSTIN format above, the first two numbers in a GST registration number are tied to the state of registration. Hence, if a business is operating in two different states, then the first two numbers of the GSTIN would change, while the PAN of the entity would remain the same. Also, in case of more than 1 GST registration within a state, then the entity code would also change.
GST Registration for Branches within a State
Separate GST registration can also be obtained for branches within a state for businesses having multiple business verticals. For GST registration to be issued for branches within a State, the following conditions must be satisfied:
- Have more than one business vertical. Business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which are subject to risks and returns that are different from those of the other business verticals.
- The business must not be registered to pay tax under the GST Composition Scheme.
- All separately registered business verticals must pay tax on supply of goods or services to another registered business vertical of the same business and issue a tax invoice for such supply.
Obtaining GST Registration for Branches
GST registration for branches or separate business verticals within the same state can be made in FORM GST REG-01. FORM GST REG-01 is the form used by all businesses for applying for GST registration. Hence, the normal procedure for GST registration application and documents required can be submitted by the business for obtaining GST registration.
After submission of GST registration application, it would be forwarded to an Officer for verification and GST registration certificate would be granted usually within 7 working days. The GST registration certificate would show the principal place of business and additional place or places of business.
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