A PAN Card is a Permanent Account Number, a unique number issued by the Income Tax Authority to business entities, individuals, and other persons for the purpose of identification. It is one of the basic necessities for any business entity to operate in India and can also be used by business entities to file Income Tax Returns (ITR) during each assessment year.
Also, when it comes to GST registration, the PAN Card and furnishing of the details of the same are basic necessities without which the GST registration shall not be granted. As stipulated before, the PAN is the major component of the GSTIN, and this makes the GSTIN unique for each of the entities or persons under GST.
Hence, when a business entity wants to take multiple registrations using the same PAN, it may not be an easy task and would be allowed only when there is the proper and applicable reason for the availing of such registration. Two reasons for this, as discussed before, would be as follows:
- When the entity is having its business branch or outlet opened in a state which is different from the one in which its business is existing already.
- The business entity or business owner is dealing with inter-state supply of goods or services or separate GST registration is required.
- The entity has a vertical business functioning within the state, and due to this, it needs multiple registrations under the same PAN. Here, the business vertical is nothing but a distinguishable component of an entity. It is supplying goods or services or both that are of an individual nature or such related goods or services or both that have different risks and returns from those of other business verticals belonging to the same entity.
It should be noted that, in the case of a business that is taking registration using the same PAN, it cannot opt for a composition scheme of tax payment if the other business registered using the same PAN is following the normal tax payment regime. In the case of a business that has or owns a unit outside of the SEZ unit, a separate business registration should be taken under GST using the same PAN.
Thus, we can now conclude that business entities or persons can avail of multiple registrations using the same PAN in a different state or the same state, and this is also made mandatory in many cases pertaining to the provisions of the GST for an easy and transparent conducting of business transactions. Business entities often take GST registration to increase their compliance and also keep the taxation on track, and for this, it is important there is proper understanding gained with regard to the registration and the multiple registrations.
The GST is working on the baseline – ‘one nation, one tax’. And this makes compliance a bit easier for business houses. The arrangement for availing of multiple registrations is again a major benefit provided by the GST Act and Authorities for increasing the ease and simplicity of compliance.
