QUESTION

`A` is already registered under GST in Delhi as proprietor of his business. He was also partner in a partnership business in other state registered in GST there. Now, partnership dissolved w.e.f. 22-06-2021 and `A` took over running business of other state with all assets & liabilities. Now `A` is distinct person liable for two GST registration in GST being being distinct person with single pan number. Can `a` have two different name of his business one of his proprietorship name `XYZ` in Delhi and another as proprietor of same running business namely `EFG` taken over as running business in other state. Also what date of commencement of business to be inserted in registration form whether 23-06-2021 or of dissolved business which has been taken over as running business with same name being lease hold premises entered with director of industries in that another state.

ANSWER

Facts of the case: `A` is already registered under GST in Delhi as proprietor of his business. He was also partner in a partnership business in other state registered in GST there. Now, Partnership dissolved w.e.f. 22-06-2021 and `A` took over running business of other state with all assets & liabilities. Now `A` is distinct person liable for two GST registration being distinct person with single PAN. Can `A` have two different names of his business. Also what date of commencement of business to be inserted in registration form whether 23-06-2021 or of dissolved business.

Law Applicable: SECTION 25 OF CGST ACT
(1) Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable within thirty days from the date on which he becomes liable to registration, in such manner and subject to such conditions as may be prescribed:
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(2) 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 maybe granted a separate registration for each such place of business, subject to such conditions as may be prescribed.
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(4) A person who has obtained or is required to obtain more than one registration, whether in one State or Union territory or more than one State or Union territory shall, in respect of each such registration, be treated as distinct persons for the purposes of this Act.

Interpretation: As per Section 25 of CGST Act Every person who is liable to be registered under section 22 or section 24 shall apply for registration in every such State or Union territory in which he is so liable.

As per sub section (2) even 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.

Further As per sub section (4) A person who has obtained more than one registration shall be treated as distinct persons in respect of each such registration.

In your case A is having one Proprietorship business in Delhi and one Proprietorship Business in some other state, therefore he is required to take separate Registrations for both Proprietorship Business and will be considered as distinct persons in respect of each such registration and thus can have different names of his business.

Conclusion: Not only Proprietors but any person can have multiple places of business registered with different names in GST.

So you are right that 'A' can have different number with different names.

The date of start can be 23-06-2021 or even 22-06-2021 but 23-06-2021 is better so that there can be a cut-off date for accounting.

Please note that taking over of ongoing concern is not taxable as "Service by way of transfer of going concern, as a whole or independent part thereof " is exempt under GST vide Notification No. 12/2017- Central Tax (Rate). Therefore at the time of transfer of business, you are not liable for any GST liability. (Reply dt. 24/06/2021)