GST Registration for Administrative Office with No Transactions

[Deepak Kumar]

We have two GST registrations—one for Haryana (head office) and another for UP (corporate office). All sales and purchases are conducted under the UP GST, while the Haryana office is used purely for administrative work with no taxable transactions.

As per our understanding, GST registration is required only if a place of business is involved in taxable supplies. Since our Haryana office does not engage in any sales or purchases, is it mandatory to maintain GST registration for it?

Can anyone provide clarity on whether we can surrender the Haryana GST without compliance issues? Please cite any relevant GST laws or official guidelines.

[Sadanand Bulbule]

Plz refer Section 22[1] of the CGST Act:

Persons liable for registration.

22. (1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Admittedly in your case, there is no any supply of goods/services from Haryana head office. So in my opinion it is better to surrender the GSTIN of that office as it is redundant to continue  it.

[Shilpi Jain]

What kind of admin work the Haryana office does is required to be seen.

Whether that can constitute a supply to your UP office?

Is your UP office eligible for full ITC?

If yes, then no need to take separate registraiton for Haryana office.

[KASTURI SETHI]

  The querist should  not jump to a conclusion. First  grasp the reply of both experts. 

[Deepak Kumar]

Hi, thank you for your answers! 

Yes, Haryana (Head office) is involved with administration work like, HR, Finance, Admin and do not sell or purchase directly even do not invoice to UP office as well. 

AI Summary

GST registration requirement: administrative offices without taxable supplies may surrender registration after checking supply attribution and ITC effects. Registration is required in the State from which taxable supplies are made; an administrative office that does not make sales, purchases, or invoice supplies from its premises is not required to maintain a separate GST registration and may surrender that registration, subject to verifying whether inter office activities constitute a supply and assessing any input tax credit consequences.