Multiple registrations in same state/union territory are now reality.
By: – Ramandeep Bhatia
Goods and Services Tax – GST
Dated:- 2-2-2019
INTRODUCTION:
In the GST regime, taxpayers have been shifted from the centralized registration (as was in service tax) to State centralized registration. There was off course option of business vertical which was allowed only on some restrictive purposes where the business line is subject to different risk and reward. There has been continuous demand from the industry especially from sectors which works in a standalone environment to provide a facility of separate registration within the state itself like chain restaurants, supermarkets, hotels etc.
The Central GST Amendment 2018 with the amendment in section 25(2) effective from 1st of February 2019 to enable the person having multiple places of business in a state or union territory to obtain separate registrations for each such place of business if they wish so. Thus the requir
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vices Tax (Amendment) Rules, 2019
Rule.1 Separate registration for multiple places of business within a State or a Union territory.-
(1) Any person having multiple places of business within a State or a Union territory, requiring a separate registration for any such place of business under sub-section (2) of section 25 shall be granted separate registration in respect of each such place of business subject to the following conditions, namely:-
(a) Such person has more than one place of business as defined in clause (85) of section 2;
2(85) “place of business” includes
(a) a place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called;
(b) Such person shall not pay tax unde
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stered person opting to obtain a separate registration for a place of business shall submit a separate application in FORM GST REG-01 in respect of such place of business.
(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.
Inserted Rule -41A Transfer of credit on obtaining a separate registration for multiple places of business within a State or Union territory
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* A registered person who has obtained separate registration for multiple places of business in accordance with the provisions of Rule 11 and who intends to transfer, either wholly or partly, the unutilised input tax credit lying in his electronic credit ledger to any or all of the newly registered place of business, shall furnish within a period of thirty days from obtaining such separate registrations, the details in FORM GST ITC-02A electronically on the common portal, either directly or through
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ain a separate registration for Pune which was its additional place of business. Let's say the total assets in the books of ABC Limited are INR 100.00 CR and out of those total assets in the books of branch Pune is INR. 30.00 CR. Hence the total utilised ITC to the extent of 30% can be transferred to the Pune separate registration via form GST ITC -02A which needed to be filled within 30days of separate registration.
The newly registered person (transferee) shall, on the common portal, accept the details so furnished by the registered person (transferor) and, upon such acceptance, the unutilised input tax credit specified in FORM GST ITC-02A shall be credited to his electronic credit ledger.”
Section 25(4) concept of a distinct person
A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purp
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