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A taxable person supplying goods or services from different states is mandated to take different GST registration for each state (which would be based on a single PAN). Also, a person who has different verticals of business within the same state can choose to have different GSTIN for each vertical (and these would again be based on a single PAN)

Important thing to note here is each GSTIN whether in different states or in the same state (for different verticals) would be treated as a separate entity under the GST law, i.e. supply within the verticals or within different units in other states would be subject to GST.

Let us understand various scenarios to make these statements more clear:

Case 1: Branch in Same State

A business that has its Head Office and branches in the same state can obtain a single registration declaring one office as the principal place of business. In this case, a single business entity with a unique PAN will have a single registration of the state in which its office is located.

Case 2: Branch in Multiple States

A business that has a Head Office in one state and branches in other states must obtain registration a separate registration for every state in which the branch is situated. In this case, a single business entity with a unique PAN will have more than one registration on the same PAN.

Case 3: Business Verticals

A business may have business verticals i.e. distinguishable components engaged in business activities different from each other. In a single business. there can be a manufacturing and trading units which can be considered as business verticals.

In this case, more than one registration can be obtained even when the Head Office and branches are located in the same state.

Conclusion: More than one registration can be taken on a single PAN if there are branches across multiple states or business verticals in the same state. However, the following points must be noted:

  1. In case of business verticals, the annual turnover of all the verticals would be aggregated to determine the threshold limit of Rs.20 lakhs for GST Registration.
  2. The business verticals can’t opt for composition scheme if the turnover of each vertical is less than specified limit but the aggregate turnover of all the verticals exceeds the specified limit.
  3. If the dealer opts for Composition Scheme, it must be obtained for all the business verticals under the same PAN.