Multiple place of business within the state or union territory GST separate registration required

This amendment is comes to effect from 1st February, 2019.

A person who is having multiple places of business can obtain a separate registration for each place of business and the conditions prescribed under rule 11 of the Central Goods and Service Tax Rules, 2017 needs to be fulfilled.

The provision of substituted rules 11 as under :

• A person who is doing the multiple places of business within a State or a Union territory shall be granted a separate registration required. 

• A person should have more than one place of business as defined in section 2 (85).
• A person who is willing to obtain separate registration should not be availing the benefit of composition scheme.
• In case of inter-unit supply transactions (i.e. supply by one registered unit to another registered unit) of the goods or services or both, the same shall be treated as regular supply. The registered person is required to issue tax invoice and pay applicable tax on the same.

• The registered person who is willing to obtain the separate registration for a place of business is required to submit an application in FORM GST REG-01 in respect of such place of business.

Transfer of Input tax credit on obtaining separate registration for multiple places of business within a state or a Union territory

New rule 41A has been inserted into the Central Goods and Service Tax Rules, 2017, vide the Central Goods and Service Tax (Amendment) Rules, 2019 effective from 1st February, 2019. 

Which deals with the provisions relating to the transfer of input tax credit in case of the registered person who has obtained a separate registration for the multiple places of business within a State or Union Territory.

The rule 41A applicable to -

A registered person who has obtained a separate registration for multiple places of business and intends to transfer the unutilized input tax credit lying in electronic credit ledger to the new registered unit;

Action to be taken by the registered person for transferring the input put credit to the new registration 

• The registered person is required to furnish details in FORM GST ITC-02A within a period of 30 days from the date of obtaining separate registration.

• FORM GST ITC-02A can be submitted either electronically through the common portal or through a Facilitation Centre notified in this behalf.

Calculation of Input tax credit to be transferred to new registered unit

The input tax credit can be transferred to the new registered unit in the ratio of the value of an asset which is being held by it at the time of obtaining the registration.

Action to be taken by the New registration unit - 

Once the application in FORM GST ITC-02A is filed by the registered person, the new registered unit is required to accept the details and upon acceptance the input tax credit balance as specified in FORM GST ITC-02A would be credited to the electronic credit ledger of the new registered unit.