2023 (7) TMI 244 - AAR - GST

Multiple GST registration from the same premises - Requirement to take separate registration for each type of business i.e. manufacturing/reselling/providing services carried on from same place of business - separate registration for each type of business i.e. manufacturing/reselling/providing services carried on from same place of business - separate registration for each state for carrying on said business in such state - separate registration for the each state, where execution of contract /job would required to be carried, in case applicant being registered under the WBGST Act, 2017 receives the work/job order from contractees situated within/outside West Bengal and inputs (both goods and services) are procured within West Bengal or state where contract would be executed. Whether this authority can decide requirement of registration of the applicant in a State other than the State of West Bengal? - HELD THAT - Sub-section (2) of section 1 of the West Bengal Goods and Services Tax Act, 2017 which speaks that the Act extends to the whole of the State of West Bengal. Though clause (f) of sub-section (2) of section 97 enables the applicant to make the instant application seeking an advance ruling whether the applicant is required to be registered, this authority is not empowered to pronounce any ruling in cases where the question is found to be in respect of registration required to be obtained in a State other than the State of West Bengal. As a result, no ruling can be pronounced in respect of questions raised by the applicant regarding requirement of separate registration for each state for carrying on said business in such state and requirement of separate registration for the each state, where execution of contract /job would required to be carried, in case applicant being registered under the WBGST Act, 2017 receives the work/job order from contractees situated within/outside West Bengal and inputs (both goods and services) are procured within West Bengal or state where contract would be executed. Requirement for separate registration in West Bengal as the applicant is already registered under the GST Act- HELD THAT - A person having separate business verticals had the option to obtain separate registration for each such vertical in a State or Union territory till 31.01.2019 - rule 11 of the CGST / WBGST Rules, 2017 has also undergone an amendment with effect from 01.02.2019 wherein the manner for Separate registration for multiple business verticals within a State or a Union territory has been substituted by Separate registration for multiple places of business within a State or a Union territory . Further, a new rule 41A has also been inserted w.e.f. 01.02.2019 prescribing the manner for transfer of credit on obtaining separate registration for multiple places of business within a State or Union territory. It therefore appears that the GST Act and rules made there under provided an option for separate registration within a State for multiple business verticals till 31.01.2019 and thereafter option for separate registration as well as transfer of unutilized input tax credit has been provided to a person having multiple places of business within the State - option for separate registration may be availed by a registered person provided such registered person has multiple places of business. Therefore, in cases where a registered person carries on separate type of businesses from same place of business within a State, he cannot opt to obtain separate registration within the said State as per proviso to sub-section (2) of section 25 of the GST Act read with rules made there under. Thus, as per proviso to sub-section (2) of section 25 of the GST Act, separate registration in a State may be granted to a person who has multiple places of business in that State.

Issues involved:
The judgment deals with the requirement of separate registration for different types of businesses carried out from the same place of business, as well as the entitlement to separate registration for each type of business. It also addresses the necessity of separate registration for each state where business activities are conducted and the implications of receiving work orders from contractees in different states.

Requirement of separate registration for different types of businesses:
The applicant, engaged in manufacturing, reselling, and providing services, sought clarity on whether separate registration is needed for each type of business conducted from the same place. The Authority clarified that while a taxable person is not obligated to obtain separate registration for each type of business, there is no restriction under the GST Act to prevent separate registrations for different business types from the same location.

Entitlement to separate registration for each type of business:
Regarding the entitlement to separate registration for each type of business conducted from the same place, the Authority referred to the proviso to sub-section (2) of section 25 of the GST Act. It highlighted that a person with multiple places of business in a state may be granted separate registration for each place of business, subject to specified conditions.

Necessity of separate registration in each state:
The applicant inquired about the requirement for separate registration in each state where business activities are carried out. The Authority differentiated between questions related to registration in the State of West Bengal and those concerning registration in other states. It was noted that the Authority lacks the jurisdiction to rule on registration requirements for states other than West Bengal.

Implications of work orders from different states:
The applicant raised a query on whether separate registration is mandatory for each state where work orders are executed, particularly when receiving orders from contractees in and outside West Bengal. The Authority refrained from ruling on this aspect, emphasizing its limitation to pronounce judgments on registration requirements outside West Bengal.

Conclusion:
In conclusion, the Authority clarified that a taxable person conducting multiple types of businesses from the same location is not mandated to obtain separate registrations for each business type. However, the option for separate registration in a state may be availed by a person with multiple places of business, subject to the provisions of the GST Act and relevant rules. The judgment provided detailed insights into the registration requirements for different types of businesses and the implications of conducting business activities across multiple states.

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