Using the Same GST Number for Multiple Businesses in Different Names

In this article, we discuss the possibility of using the same GST number for two different businesses registered under different names within the same state. Understand the legal requirements and implications based on the latest guidelines provided by SEZ (Sez Authority).

Introduction to GST Number and Registration

Goods and Services Tax (GST) is a consumption tax that affects virtually every business in India. One of the key components of GST implementation is the GST Number (GSTIN), which is a unique identifier for every taxpayer registered under the GST framework. Each business must obtain a GSTIN to conduct operations compliant with GST regulations.

Conditions for Using the Same GST Number

Same State, Same Business Entity

The primary criterion for using the same GST number for two different businesses under different names within the same state is that the businesses must be operated under the same legal entity. Under Section 25 of the CGST Act, it is mandatory to obtain a separate GST number for different business establishments in different states, regardless of the PAN number.

different PAN, Different GSTIN

When the business entities are distinct and operated by different individuals, each entity will have its own Permanent Account Number (PAN). Since GSTIN is PAN-based, each business will be registered under its own unique GSTIN. This means that even businesses with different owners must obtain separate GST registrations.

Multiple Business Locations

If a single business entity with the same PAN operates in multiple locations within the same state, it is possible to register additional places of business under the same GST number. This can be done by clearly indicating the additional business locations on the registration certificate.

Conclusion and Legal Considerations

While it is generally not recommended to use the same GST number for multiple businesses with different names unless they meet specific conditions, such as being operated under the same legal entity within the same state, there are specific scenarios where this may be permissible. However, it is crucial to adhere to the legal requirements and obtain necessary registrations to avoid any legal complications and ensure compliance with GST regulations.

Disclaimer: The information provided in this article is a general opinion based on current guidelines and may not be actionable. For specific legal advice, readers are encouraged to seek expert legal opinions with complete disclosure of all relevant facts.

Legal Advisor: CA Bhavesh Savla, providing expert insights on GST and business registrations.