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Do you run or plan to start different companies? Then a common question arises - can I Use One GST Number for Multiple Businesses? As a fellow entrepreneur, I understand this curiosity to simplify operations. When it comes to using a single GST number for different companies, Indian tax law has certain guidelines to follow. Even though combining registrations offers advantages, getting separate ones may be necessary depending on your case. In this article, I aim to elucidate the GST rules around this topic using plain language.
Firstly, let's look at whether combining registrations is legally possible. After that, I'll explain when you can do it and the key criteria to qualify. Furthermore, we'll examine the upsides as well as limitations to weigh. Finally, some frequently asked questions will be answered to cover all bases. Here is a simple table to show the GST rates applicable for different categories of goods and services as per the Indian GST slabs:
|Raw materials, industrial inputs
|Consumer goods with basic necessities
|Consumer durables, home appliances
|Consumer goods with minor luxuries
|Luxury and sin goods like cigarettes, aerated drinks
|Precious metals like gold
The use of a single GST number for multiple businesses depends on specific conditions. The GST Council and Indian tax law allow the registration of multiple company locations or divisions under one PAN-based GST registration number, subject to certain prerequisites.
However, there are scenarios where separate registrations are mandatory, even if the promoters or proprietors are the same. Therefore, while a consolidated GST number is possible under predefined conditions, a uniform solution may not be applicable in all cases.Consequently, let us delve deeper into examining the detailed guidelines governing this issue. By exploring the exact qualifications transparently, we can gain a clearer understanding of how to legally comply with registrations for multiple companies using either single or multiple GST registration identities. If you want to know about the process for filling Then you should go for it GST Registration Process (Step-by-Step).
First, log on to your GST portal account. Under the 'Registration' tab, locate the 'Registration Amendment' section.
Next, select the option to modify your registration details. This will allow you to expand your taxable presence.
Now, click the button that says 'Add supplementary location'. You'll see fields to enter the required particulars of the new place of operation.
Fill in the address, activity type, and effective date appropriately.
Take care to map the branch to your parent GSTIN accurately. Once done, navigate to the inventories section. List out the goods or services dealt with at this node, along with their codes. Move forward and enter banking and state-level license information as applicable for said place. Finally, read through everything once more for consistency. Tick the verification checkbox before sending it online with your DSC.
Firstly, each business will collectively be accountable and liable for any compliance failures or tax dues of other businesses under the registration number.
Secondly, you lose transparency in the financial performance of independent businesses. Their revenues and expenditures cannot individually be monitored for internal reporting purposes. Thirdly, expanding operations beyond one state in the future will necessitate migrating to multiple GSTINs owing to geographic restrictions.
Furthermore, business restructuring like asset transfers between firms becomes intricate since they are essentially transferring assets to themselves only. Lastly, high compliance risk exists if the activities of member firms change over time and give up the original criteria used to obtain consolidated registration.
Therefore, while a single GSTIN offers conveniences, it may not always fit your evolving business or risk appetite owing to such trapped liability and lack of ring-fencing issues. Careful evaluation is imperative.
Initially, are the nature and locations of all businesses consistent presently as well as in the foreseeable future?
Secondly, what is the volume of intra-firm transactions likely to be? Will input credits be optimally utilized?
Next, how complex are the current compliance requirements for individual firms? Also, how is the overall tax position and risk profile of each business vertically?
Furthermore, do financial statements and compliance history need to be independently audited?
Lastly, are there any restructuring possibilities on the horizon involving asset transfers?
Taking all these factors into account activity mix, compliance complexity, risk assessment, and strategic flexibility - choose the registration structure that optimally aligns with your current and long-term business needs.
However, the businesses must ensure proper maintenance of accounts to distinguish transactions of each place of operation. Likewise, the entire process is completely online and does not require any physical paperwork or movement. Consequently, once approved, multiple businesses operate as a single taxable entity. This facility offers tremendous convenience to multilocation organizations. Commrz is committed to walking young businesses through administrative formalities as they embark on their entrepreneurial journeys. While GST adherence is inevitable over the long run, some fledgling companies need not sign up instantly. These startups are free to test market potential and build an online customer base without involving themselves in taxation workflows straightaway.
Are you a business owner waiting to unlock your online potential? As India’s leading digital marketplace commrz is ready to help you establish an engaging online presence without any hassles.
In just 5 simple steps, you can start selling to customers across India:
From there, seamlessly manage orders, shipments, customer queries and analytics – all within your commrz dashboard.Similarly, the builder grants absolute control over websites through its user-friendly interface.
Yes, it is possible to use one GST number for multiple businesses, provided they meet certain conditions, such as existing in the same state and not being registered under the GST Composition Scheme
Q. Can I use my friends GST number for my business?
No, you cannot use your friend's GST number for your business without their prior approval
Q. How many GST number can a person have?
A person can have multiple GST numbers, as each business vertical or branch can be registered under a single PAN in each state or union territory
Q. Can I run 2 businesses from the same premises?
Yes, it is possible to run two businesses from the same premises, as long as it is not illegal or detrimental to the businesses.
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