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CA Intermediate · Taxation · Registration

Ritu Enterprises, registered in Gujarat, has a branch in Karnataka from which it also makes taxable supplies as a separate business place. Under the CGST Act, 2017, which statement about its registration is correct?

Ritu Enterprises needs a separate registration in Karnataka, because GST registration is State-wise although linked to the same PAN, so a taxable supplier with a place of business in another State must register there as well.

  1. AA single Gujarat registration covers the Karnataka branch because the PAN is the same
  2. BIt needs a separate registration in Karnataka for the branch, since registration is State-wise based on PAN, and it may take separate registrations for business verticals in the same State as an optionCorrect
  3. CIt needs a separate registration in Karnataka only if the branch turnover exceeds Rs 1 crore
  4. DIt may register in Karnataka only after cancelling its Gujarat registration

Explanation

Registration is PAN-based but State-specific. A supplier making taxable supplies from more than one State must register separately in each State. Hence the Karnataka branch needs its own registration. Option A ignores State-wise registration and option D is not required.

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