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

Vertical registration optional for distinct business verticals within same state; separate GST registrations create independent compliance obligations.
Vertical registration allows distinct operations in the same State/UT to obtain separate GST registrations though it is not mandatory; trading in goods and renting immovable property are typically separate business verticals. If activities are in different states, separate GSTINs are mandatory. Opting for vertical registration requires separate returns, independent accounting, inter-vertical invoicing treated as taxable supplies, and precludes selective use of the composition scheme. The election is made on the GST portal with the required documents and declarations.