Separate Business Verticals

[Archna Gupta]

Dear Experts

Please clarify:

1. If a registered person is supplying Business services and Renting services in Delhi, will it be covered under separate business verticals.

2. Is separate GST registration compulsory for separate business verticals?

[Rajagopalan Ranganathan]

Madam,

According to Sub-section (2) of Section 25 of CGST Act, 2017 "A person seeking registration under this Act shall be granted a single registration in a State or Union territory. Provided that a person having multiple business verticals in a State or Union territory may be granted a separate registration for each business vertical, subject to such conditions as may be prescribed.

According to rule 11 (1) of CGST Rules, 2017 " Any person having multiple business verticals within a State or a Union territory, requiring a separate registration for any of its business verticals under sub-section (2) of section 25 shall be granted separate registration in respect of each of the verticals subject to the following conditions, namely:-

(a) such person has more than one business vertical as defined in clause (18) of section 2;

(b) the business vertical of a taxable person shall not be granted registration to pay tax under section 10 if any one of the other business verticals of the same person is paying tax under section 9;

(c) all separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.

Explanation.- For the purposes of clause (b), it is hereby clarified that where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other business verticals of the said person shall become ineligible to pay tax under the said section.

Subject to the above provisions you can have separate registration for multiple business verticals owned by you.

[Archna Gupta]

Can you please give some examples of multiple business verticals. Do my services fall under this definition and is it compulsory or optional to get separate registration for multiple business verticals?

[KASTURI SETHI]

Your services are covered under business verticals. Separate registration is required for each business.

[Ravikumar muthusamy]

is it compulsory to take seperate registration for different business verticals?

[KASTURI SETHI]

Yes. In my view it is compulsory.

AI Summary

Separate GST Registration Required for Different Business Verticals Under CGST Act, 2017 A participant in a discussion forum inquired about the necessity of separate GST registrations for different business verticals when supplying business and renting services in Delhi. An expert clarified that under the CGST Act, 2017, a person can obtain separate registrations for multiple business verticals within a state or union territory, subject to certain conditions. Another participant asked for examples and whether separate registration is mandatory. It was confirmed that the services fall under business verticals and separate registration is required. Another expert affirmed that separate registration is deemed compulsory for different business verticals.