Question
If a person is registered in GSTIN as a trader of perishable goods and he receive one commission of Rs. 3,20,000/- in 2018-19 as a service provider in different type of business. should he continue with the existing GSTIN or apply for separate GSTN.
Answer
Facts of the case: Taxable person is
already registered under GST for undertaking taxable activity of supply of
perishable goods. Now he receives consideration from a different supply
undertaken.
Law Applicable:
(i) As per section 22(1) CGST;
"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"
(ii) As per section 25(2) CGST;
"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 places of business in a State or Union
territory may be granted a separate registration for each such place of
business, subject to such conditions as may be prescribed."
Interpretation:
Under GST regime, trader, service provider, manufacturer etc all have been
covered under the definition of "Supplier". Similarly all their taxable
activities have regarded to as "Supply". Therefore law isn't differentiating
between various taxable businesses of a taxable person.
Requirements of registration is dependent upon aggregate turnover, defined under
section 2(6) CGST, and location of business in multiple states/UT.
As per the above stated law mandatory GST registration is required in different
states if taxable supply exceeding 20Lakh (or 10Lakh) is made from different
states. And optional separate GST registration is available for multiple POB
within same states.
Conclusion:
Getting a separate registration depends on location of business and not on type
of business.
If states/UT is different then mandatory separate registration is needed. If POB
are different within same state then option for separate registration is
available.
However, in all the cases, aggregate turnover under section 2(6) shall be
computed on all India basis under the same PAN. (Reply dt.08/04/2019)