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

Company Considers Surrendering Haryana GST Registration Due to Non-Taxable Activities, Evaluates Section 22 Implications A company has two GST registrations: one for its head office in Haryana, which handles only administrative tasks, and another for its corporate office in UP, where all sales and purchases occur. The company inquires if it is necessary to maintain GST registration for the Haryana office, given it does not engage in taxable transactions. One response suggests surrendering the Haryana GST registration as it seems unnecessary, referencing Section 22 of the CGST Act. Another advises considering if administrative work constitutes a supply to the UP office before deciding. The company confirms the Haryana office only performs administrative functions.