Introduction
With the advent of the Goods and Services Act, of 2017, it became a mandatory practice for businesses to file for GST at various levels viz. central and state. It was analysed that for business houses with multiple businesses, it is a cumbersome process to register under several GST numbers. Registering multiple businesses under the same GST is legally permissible and this approach can simplify filing for taxes.
Benefits of Having Multiple Businesses Under One GST Registration
• Compliance gets streamlined: When everything is unified under a single GST framework, it is simpler to adhere to and fulfil tax regulations.
• Cost-effectiveness: Compared to managing individual registrations for every business, managing a single GST registration can save time, effort, and resources.
• Operational Cohesion: Better coordination and structure in your activities are encouraged by corporate consolidation.
• Uniform Reporting: This improves overall financial management by making reporting and tracking more cohesive and uniform.
• Enhanced Tax Obligations: A more effective and efficient method of fulfilling tax responsibilities is ensured by a single GST for numerous firms.
• Improved Control: Centralized GST registration offers improved monitoring and management of every company's tax-related operations.
• Ease of Expansion: A consolidated GST registration makes it easier to add new businesses or grow current ones.
What are the Conditions for Adding Multiple Businesses Under the Same GST Number?
There are various ways to add additional business to GST. The primary condition is that Business Verticals or multiple businesses should exist in the same state.
This scheme is of utmost beneficial to MSME businesses that are willing to expand.
Legalities and Criteria for Adding Multiple Businesses Under One GST
There are a few crucial rules and requirements to take into account when adding several enterprises under a single GST. This is a condensed summary:
Same Owner: The owner or owners of every company you wish to combine under a single GST registration should be the same.
Same State: For a more seamless GST consolidation process, these companies ought to be based in the same state.
Similar Business Type: The companies have to be similar in that they carry out similar kinds of operations.
Single PAN Number: To connect all of the firms, a single Permanent Account Number, or PAN, is necessary.
Individual GSTIN: Although all businesses will be linked under a single registration, each will continue to have a distinct GSTIN (Goods and Services Tax Identification Number).
Unified Business Operations: Companies must have a cohesive approach to operations that demonstrates a direct line of communication between them.
Correct Documentation: Verify that all necessary paperwork, including PAN cards and business registration papers, is in order.
Notifying Authorities: Make the GST authorities aware that you plan to combine these companies into a single GST registration.
Tax eExpertConsultation: To make sure you're fulfilling all the legal requirements, it's a good idea to speak with a tax expert.
Respect for GST Regulations: To guarantee compliance, abide by the guidelines established by the Goods and Services Tax.
Can I Use One GST Number for Multiple Businesses?
You can classify your companies as distinct verticals of the same legal organization if they are located in the same state but belong to different industries or categories. You must disclose these business verticals when you register for GST. This makes it possible for consolidated tax filings and simpler compliance. Nonetheless, your GST application needs to include accurate documentation for every company vertical.
For instance, you can register both as separate business verticals using a single GST number if you are the proprietor of both a retail store and an event management firm in Maharashtra. This streamlines tax administration and cuts down on paperwork.
Step-By-Step Procedure to Add Multiple Businesses Under the Same GST
The process of adding multiple businesses under the same GST is user-friendly. You should follow the below-mentioned steps:
Step 1: Access the GST Portal and login.
Step 2: Choose "Amendment of Registration Non-Core Fields" from the Registration Tab.
Step 3: Choose "Additional Places of Business" from the list of Non-Core Fields.
Step 4: Click the "Continue" button. You will be prompted to select the goods and services you wish to add on the following screen.
Step 5: If you sell items, enter the HSN code; if you provide services, enter the SAC code. The Save & Continue button should be clicked.
Step 6: The information about the bank accounts your company owns is the next set of details you must submit
Step 7: This step entails entering state-specific information with the individual whose name the excise license is held, including the Professional Tax Employee Code (EC), Tax Registration Certificate (RC), and State Excise License Number.
Step 8: Verification and authentication are the final steps. To complete this, tick the verification box and click the "Submit with DSC" button. Your company will be added to your GST registration account once your DSC has been verified.
Lastly, you must click the Verification checkbox and click the Submit button with the DSC to validate the data you submitted.
Challenges and Solutions in Managing Multiple Businesses Under One GST
1. Complicated Record-Keeping: Keeping track of documents for several companies can get challenging, which could result in mistakes.
2. Varying Tax Rates: It can be difficult to guarantee accurate computations when different organizations have different tax rates.2. Accounting Software Use: Make use of accounting software that can handle various tax rates. Businesses with different tax rates can easily customize this program to ensure proper estimates.
3. Compliance Issues: It can take a lot of effort and be easy to overlook the various GST regulations that apply to different businesses.
4. Unified Reporting: Because accounting procedures vary, it could be difficult to create unified reporting for every company.5. Administrative Burden: Managing several firms efficiently takes more time and effort as the administrative workload grows.
These problems can be avoided by implementing the below-mentioned solutions –
1. Centralized Record Keeping System
2. Use of Accounting Software
3. Regular Compliance Checks
4. Standardized Reporting Formats
5. Delegated Responsibilities
Common Mistakes to Avoid When Adding Multiple Businesses Under GST
1. Don’t mix various finances.
2. Ensure that necessary documentation is complete.
3. Never forget the necessary compliance checks.
4. Don’t forget to delegate the responsibilities whenever required
5. Maintain open communication among businesses to avoid any conflicts
6. Seek the assistance of an experienced professional, if required.
Conclusion
Adding multiple businesses under the same GST number is a time-efficient process that helps in the expansion of business.
However, filing for various businesses under the same GST number can be a tricky process and therefore it is ideal to seek professional assistance in the field.
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