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CA Intermediate · Taxation · Registration

Deepak Electronics, a registered dealer in Karnataka, wants to open a new branch in Mysuru, also in Karnataka, dealing in the same business. Under the CGST Act, 2017, which statement about its registration is correct?

Deepak Electronics may take a separate registration for the Mysuru branch, subject to the conditions on business verticals, but it is not compelled to do so. Separate registration is optional, and the branch can otherwise be added as an additional place of business under the existing GSTIN.

  1. AIt must obtain a separate registration for the branch because every branch needs its own GSTIN
  2. BIt can obtain a separate registration for the branch, as a person having multiple places of business in a state may take separate registration for each, subject to conditionsCorrect
  3. CIt cannot take a separate registration for the branch under any condition
  4. DIt must surrender its existing registration and take a new one for both places

Explanation

A person with multiple business verticals or places of business in a state may take separate registration for each, if each one is separately eligible; the proviso allows separate registration for business verticals. The branch need not take a separate GSTIN, as it can be added as an additional place of business. Therefore the correct statement is that separate registration is available subject to conditions, not mandatory and not prohibited.

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