Certainly, an individual can obtain multiple GST registrations at the same address, provided they meet the conditions outlined in the GST Registration Rules. These rules, established on March 31, 2017, specify that individuals with distinct and separate business verticals within a State or Union territory can be granted separate GST registrations for each of these verticals.
Conditions for multiple GST registrations in the same Address
The key conditions for obtaining multiple GST registrations at the same address are as follows:
- The individual must have more than one business vertical as defined in clause (18) of section 2 of the GST Act.
- If one business vertical of a taxable person is paying tax under section 9, then no other business vertical of the same person can pay tax under section 10. In other words, if one business vertical opts for the composition scheme (section 10), all different business verticals of the same person are ineligible for it.
- All separately registered business verticals must pay tax under the GST Act on supplies made to other registered business verticals of the same person, and they should issue tax invoices for such supplies.
A registered person eligible for separate registration of business verticals may submit a distinct application for each vertical. The application process follows the rules for verification and the grant of registration. So, it is indeed possible for different individuals to obtain GST registration at the same address as long as they adhere to these rules and fulfil the necessary criteria.
Case Law of Space lance Office Solutions Private Limited
Furthermore, the case of ‘Space lance Office Solutions Private Limited – 2019(8) TMI 817 – Authority for Advance Ruling – Kerala’.clarified that multiple individuals or businesses can obtain GST registration using the same address, particularly in the context of shared office spaces. This ruling recognised the evolving nature of workspaces and the importance of co-working spaces for startups, allowing them to establish their offices with reduced capital. It emphasised that as long as the property owner or landlord permits the subletting of space as co-working space, separate GST registrations for distinct businesses using the same address are permissible. The GST authorities found no direct laws or guidelines prohibiting such registrations under GST. This interpretation facilitates flexibility and growth for businesses operating in co-working environments.
The Bottom Line
Individuals can obtain multiple GST registrations at the same address if they meet specific conditions outlined in the GST Registration Rules. These rules allow for separate registrations for distinct business verticals within a State or Union territory. The case of ‘Space Lance Office Solutions Private Limited’ in Kerala further clarified that shared office spaces can accommodate multiple individuals or businesses with separate GST registrations, provided the property owner allows subletting as co-working space.
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Frequently Asked Questions:
Can individuals or businesses have multiple GST registrations at the same address?
Yes, individuals or businesses can obtain multiple GST registrations at the same address, subject to specific conditions set out in the GST Registration Rules.
What are the essential conditions for obtaining multiple GST registrations at the same address?
The essential conditions include having distinct business verticals, ensuring that a vertical paying tax under section 9 doesn’t overlap with section 10, and complying with GST tax regulations for supplies among registered verticals.
How does the case of ‘Space Lance Office Solutions Private Limited impact GST registrations at shared office spaces?
This case clarified that shared office spaces can facilitate multiple individuals or businesses with separate GST registrations as long as the property owner permits subletting as a co-working space. It emphasises flexibility and growth for such businesses.