Enlisting the two exceptions for the condition of one registration in one state for one PAN (Permanent Account Number), revenue secretary Hasmukh Adhia clarified that firms with multiple business verticals can choose to apply for multiple registrations on the Goods and Services Tax (GST) Network. During the first chapter of his six-day masterclass on GST, Adhia said that if the businesses are big to have several verticals, then they can request for different registrations, but then the verticals will be treated as “completely different entities” for taxation purposes and details would need to be maintained separately for each of the verticals.
Also, these verticals with separate registration numbers can’t opt for composition scheme if the turnover for each arm is below the specified threshold but the aggregate turnover exceeds the limit. “Separate verticals of a same business can’t be part of composition scheme. The entity will also be taxed on aggregate revenue of all its arms,” Adhia said.
The second exception for having multiple registrations in one state linked to one PAN will be if within a state, a business has one unit in Special Economic Zone and another outside it, he said. The revenue secretary, however, said that if both the units are inside SEZ then the business can opt for one registration number. Adhia, along with the Central Board of Excise and Customs Chairman Vanaja N Sarna and other officials, are part of the six-day session on GST.
On registrations done so far, GSTN CEO Prakash Kumar said out of over 80 lakh tax assessees of VAT, excise and service tax, around 67 lakh have activated their provisional IDs and are now enrolled in GSTN. Around 30 lakh have also completed the part B of the registration and secured the final ID under GST, he said. The Revenue Secretary said that those with provisional ID have a window of three months to convert their provisional ID to permanent GSTIN by completing the second half of the registration process.