Vertical Registration

[KERAGODEGOPALARAO ANANTHARAO]

Dear sir,

In one our client mother who is registered person in renting of immovable property in other district is demised leaving her only son.

Khatha transfer is completed

Son is a regsitered person supplying taxable goods

In this situation, is it preferable to go foe vertical registration since one is supply of goods other is supply of services.

If vertical registration is advisable what is the procedure?

Yours faithfully,

K G Anantharao

AI Summary

Son inherits property rental business, considers vertical GST registration for separate goods and services operations A registered person in property rental services passed away, leaving her son who operates a separate taxable goods business. The query concerns whether vertical registration is advisable since one involves goods supply and the other services supply. The response explains that vertical registration allows separate GST registrations for distinct business verticals within the same state, requiring separate returns and compliance for each vertical. While this provides cleaner financial tracking, it increases administrative burden with multiple filings and prevents composition scheme usage. Each vertical must treat inter-vertical transactions as taxable supplies with full GST implications.