Businesses in India are mostly run by a single owner or entity that is operating from different locations or in various industries. It is therefore very important to understand how to add multiple businesses under the same GST number, in order to achieve smooth tax compliance and proper business operation. This article details the process, legal provisions, and how it is advantageous to business owners. Further, we’ll look at some of the other related matters – ITR filing, Trademark Registration, GST Registration, and TDS filing, all meant to simplify business administration for you.
What is GST and Why is It Important?
The Goods and Services Tax, or GST, is an indirect tax reform that will replace multiple indirect taxes like VAT, excise duty, and service tax. It brings uniformity in taxation and is levied on the supply of goods and services.
Businesses that run multiple units can have registration of as many business verticals at one place with a different GST number by registering additional places of business or branches, thus maintaining the compliance level and reporting also simplified without undergoing separate registrations.
Is it possible to have Multiple Businesses added under one GST Number?
Yes, according to GST law, multiple business units operating under the same PAN can be covered in one GST registration. This is especially helpful for entrepreneurs or companies that have various branches, stores, or different kinds of businesses.
How to Add Multiple Businesses Under the Same GST Number
Add multiple businesses under the same GST number by following these steps:
- Log into the GST Portal
Go to the GST portal. Use your credentials to log in. Verify that you have permission to amend or add GST registration. - Step for the ‘Amendment of Registration’ Option
When logged in:
Access the ‘Services’ tab.
Click on ‘Registration’ and then ‘Amendment of Registration (Non-Core Fields)’. - Adding Additional Places of Business
To register multiple business units:
Access the ‘Additional Place of Business’ section.
Provide the name of the business, address, nature of the business activity, and proof of premises, which may include a rent agreement, electricity bill, etc.
- Upload Required Documents
You will need to upload scanned copies of documents like:
Proof of the additional place of business.
A copy of the rent agreement or property tax receipt.
Ownership proof, such as a utility bill or property documents.
- Submit and Verify
After filling in the details:
Click on the ‘Submit’ button.
Verify the changes through your Digital Signature Certificate (DSC) or Electronic Verification Code (EVC). - Track Application Status
You can track the application status through the GST portal. Once approved, the updated GST registration certificate will reflect the additional business details.
Advantages of Adding Multiple Businesses Under the Same GST Number
- Least Costly Compliance: Maintaining a single GST registration rather than getting multiple GST numbers by each business unit reduces cost compliance.
- It simplifies tax filing to ITR, TDS returns, and even tax auditing.
- Unified Taxation Records: A single GST number enhances uniform tax records, with smooth operations and better money tracking.
- Ease of Reporting: Businesses can aggregate their input tax credit claims and output tax liabilities under one GST number.
Documents Required to Add More Business Units
Here’s a list of the required documents for this purpose:
Original GST Registration certificate.
Proof of ownership of the new premises.
Proof of identity and address proof of the proprietor or authorized signatory.
Utility bill of the premises- electricity or water.
Rent agreement if rented.
Other Compliance Processes You Should Know
Adding multiple businesses under the same GST number is just one aspect of tax and regulatory compliance. Here’s how it aligns with other critical processes like Trademark Registration, ITR Filing, GST Registration, and TDS Filing:
- GST Registration
While you can add multiple businesses under a single GST number, the first GST Registration is compulsory. Ensure that your PAN, Aadhaar, and business details are correct at the time of registration so that there are no discrepancies when adding new units later.
- Trademark Registration
For businesses expanding to multiple locations or starting new verticals, the protection of brand identity is very important. Trademark registration ensures that your brand name, logo, or slogan is protected. This complements the GST process by giving your business a unique identity.
- ITR Filing
When managing multiple businesses, consolidated financial records become crucial for accurate ITR filing. Ensure that revenue from all units is reported under the same PAN and that any tax deductions or exemptions are appropriately claimed.
- TDS Filing
Businesses with employee or vendor payments must adhere to TDS filing norms. Centralizing TDS records across all business units simplifies compliance and prevents penalties for non-deduction or late payments.
Common Issues Encountered When Adding Multiple Businesses Under One GST Number
- Incomplete or Inaccurate Documentation
Sometimes, missing or incorrect documentation causes delays in the approval process. The details should be correct and verified before being submitted. - Non-Conformity to State Rules
Different states may have various rules for multiple location businesses. For example, inter-state branches may involve additional disclosures. - Complexity in Return Filing
Although consolidated GST filing is an advantage, data from multiple units can be very difficult to manage without the right accounting software or professional support.
Best Practices to Manage Multiple Businesses Under One GST Number
- Use Accounting Software: Implement robust accounting tools to manage invoices, GST returns, and compliance for all business units efficiently.
- Hire Professionals: Engage GST consultants or chartered accountants to handle complex filings and amendments.
- Regular Audits: Do audits periodically to ensure that your business verticals comply so that there are no penalties involved.
- Updated Version: Monitor updates on the GST law and see to it that your business process meets all the updated regulations.
Conclusion
It’s a strategic and efficient way to streamline compliance for the entrepreneur managing different ventures, adding multiple businesses under one GST number. This way, through the amendment features of the GST portal, you ensure all your business units operate under one unified tax framework.