Are 2 GST Registrations Possible On One PAN Card?

The GST (Goods and Services Levy) is a value-added tax charged on non-exempt goods and services. GST, which replaces many indirect taxes such as CST, service tax, VAT, and so on, was introduced with the slogan "one country, one tax." GST registration is required by Section 25 (1) of the CGST Act for all non-exempt goods and services providers, regardless of their business place. The GSTIN gateway is an online platform where taxpayers can apply their GST registration applications. A PAN is a legal requirement for company owners working in India, according to the Income Tax Act of 1961. The PAN assists the IT department in finding financial loopholes created by incorrect or late transactions. Many businesses use the PAN card to collect invoices and remittances in addition to filing the IT return. At a nutshell, without a PAN passport, no corporate organisation can take advantage of tax benefits. In this article we will tell you how and who can obtain 2 GST Registrations on one PAN Card.

GST registration and PAN card

GST is an indirect tax that gathers all income, whether direct or indirect, under one umbrella. The PAN figure, which deals with direct taxation, is included in the GST registration number. For the time being, the GST Act prohibits any taxpayer from having two GST numbers associated with a single PAN card if non-exempt products and services are only traded within a single state or union territory. If, on the other hand, the supplier engages in interstate commerce, he or she can obtain separate GST registrations for both states, resulting in two GST registrations on one PAN passport.

Important points regarding 2 GST registrations

Following are the essential points regarding 2 GST Registrations on one PAN card 

• If your company wants to have several GST registrations, it must follow the conditions mentioned above.
• Therefore, you cannot qualify for a composition scheme under GST for a single business vertical if one of the business verticals does not serve the GST clause.

• The corporation must adhere to GST regulations when submitting a tax invoice or filling out a tax form for the provision of products and services within the market verticals.

What is the business vertical?

The term Business Vertical is defined as a distinguishable portion of an organisation that deals with the supply of goods and services, as defined by section 2 (18) of the CGST Act, 2017. The market aspect is exposed to risks that are distinct from those faced by the majority of the company's verticals. The act further explains the requirements that must be met for new vertical registrations under GST. 

• The type of production process
• The type of services or goods
• Type of customer-base reaping the services
• Type of distribution channel
• Type of regulatory or statutory environment supporting the business verticals.

Conditions for acquiring 2 GST registrations on one PAN card

Following are the conditions for obtaining 2 GST Registrations on One PAN Card:  

• An individual overseeing several places of business in a given jurisdiction would be issued a special GST registration if they are concerned with interstate supplies.

• Every division of a company running under the composition system is not required to apply for GST separately.

Rule 11- CGST Rules, 2017

This legislation establishes a series of rules for independent GST registration for company verticals located in the same State or UT. Law 11 (1) introduces some additional rules for a new vertical. The below are the rules:- 

• According to section 2 (18) of the act, a person seeking separate registration must have multiple market verticals (specifically, more than one).
• An applicant cannot apply for registration under section 10 if the applicant's remaining market vertical has already been registered.
• Section 9– A individual who operates several business verticals must account for tax obligations imposed by the act on the sale of products or services to other business verticals. In this case, the clause also emphasises the issuance of invoices.

• CGST Act 2017 Rule 8(1) – If a taxpayer wishes its business entity to be listed outside the SEZ, it must apply with GST separately.

Conclusion

The above data clearly demonstrates that allowing two GST registrations on a single PAN card is 100% feasible and realistic. Taxpayers who need special identification for interstate supplies or various company verticals do not need to use additional approval procedures. In this case, too, the registration protocol is exactly the same. However, there is a legal requirement that a taxpayer must meet in order to be in compliance with the legislation. Allow the Enterslice experts to assist you if you are having trouble with 2 GST Registrations. Via a series of questions, our well-trained experts will help you navigate the complexities of the registration process.