REGISTRATION OF VERTICALS IN SAME STATE

[CA.ANCHAL RASTOGI]

A Individual have income from Rent along with trading business. may he apply for separate registration for rent and trading according to provision of section 25 (2) of cgst act by considering it that individual person having multiple verticals one rent and other trading

if turn over of trading and rent both separately less than ₹ 20 L . registration needed for both verticals

[THYAGARAJAN KALYANASUNDARAM]

Dear sir,

As per the GST Act, you may have two registration since, different nature of activity, these will be treated as establishment of distinct persons for the purposes of CGST Actsec 25(5).

Whereas for the turnover calculation the threshold limit of rs. 20 lakhs(other than special category states) as follows.

Supply of Goods or services or both if your aggregate turnover in a financial year exceeds rs. 20 lakhs to get register under sec 22(1) of CGST Act.

If rent and trading of business turnover not exceeds rs. 20 lakhs individually in a financial year and registered as business verticals, but your aggregate turnover exceeds the above limit, then you have to get register yourself.

Note: if the rent against residential dwellers, then it is not covered under the GST regime.

[Ganeshan Kalyani]

Also one should consider the pain of conplaince. Separate registration means separate compliance, separate assessment, audit etc.

[Kishan Barai]

No need for separate Registration , you can add more HS Code in same Business while filling or amend GST.

If you need different Registration, place of Premises should be different along with PAN & Bank account

[Ganeshan Kalyani]

Separate registration can be taken for different business vertical of same entity.

[Kishan Barai]

Agreed but turn over of both firms would be treated as combined. 2 URD firm showing 10 , 10 Lacks turn over would be treated as 20 Lacks

[Ganeshan Kalyani]

Correct.

[Ganeshan Kalyani]

Yes , i agree.

[KASTURI SETHI]

In the situation explained by the querist, separate registration in same State is not compulsory. For arriving at threshold exemption limit, turnover will be clubbed

AI Summary

Aggregate turnover rule determines GST registration for multiple business verticals; combined turnover can trigger registration despite separate activities. Different activities may be treated as separate business verticals and as establishments of distinct persons, allowing separate registrations where businesses have separate places of business and distinct PAN/bank links, but separate registration creates additional compliance obligations. For registration threshold purposes, aggregate turnover of multiple verticals is generally combined; residential rent to residential occupants is ordinarily outside the GST net and should be considered when aggregating taxable turnover.