Rule 11 of ‘Central Goods and Services Tax (CGST) Rules 2017’: Separate Registrations for Multiple Business Verticals within a State/ UT
Provisions under Rule 11 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Separate Registrations for Multiple Business Verticals within a State/ UT”, as per Notification dt. 19 June 2017 issued by the CBEC/ Central Govt., are as under:
CGST Rule 11: Separate Registration for Multiple Business Verticals within a State or Union Territory (Chapter-III: Registration Rules)
(1) Any person having multiple business verticals within a State or a Union territory, requiring a separate registration for any of its business verticals under subsection (2) of section 25 shall be granted separate registration in respect of each of the verticals subject to the following conditions, namely:-
(a) such person has more than one business vertical as defined in clause (18) of section 2;
(b) the business vertical of a taxable person shall not be granted registration to pay tax under section 10 if any one of the other business verticals of the same person is paying tax under section 9;
(c) all separately registered business verticals of such person shall pay tax under the Act on supply of goods or services or both made to another registered business vertical of such person and issue a tax invoice for such supply.
Explanation.- For the purposes of clause (b), it is hereby clarified that where any business vertical of a registered person that has been granted a separate registration becomes ineligible to pay tax under section 10, all other business verticals of the said person shall become ineligible to pay tax under the said section.
(2) A registered person eligible to obtain separate registration for business verticals may submit a separate application in FORM GST REG-01 in respect of each such vertical.
(3) The provisions of rule 9 and rule 10 relating to the verification and the grant of registration shall, mutatis mutandis, apply to an application submitted under this rule.