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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Sunrise Foods Ltd has its registered GST number in Karnataka. It now opens a separate warehouse and sales office in Kerala from where it will supply taxable goods. What must the company do under the GST registration scheme?

The company must obtain a separate GST registration in Kerala. Registration is State-wise and PAN-based, so a business with establishments in different States needs a distinct registration in each State from which it makes taxable supplies, while retaining its Karnataka registration.

  1. AUse the Karnataka registration for Kerala supplies since the PAN is the same
  2. BObtain a separate registration in Kerala, since registration is State-wise, PAN-basedCorrect
  3. CRegister in Kerala only if Kerala turnover exceeds Rs 1 crore
  4. DSurrender the Karnataka registration and register only in Kerala

Explanation

GST registration is State-wise and linked to PAN, so a business with places of business in different States must take a separate registration in each State from where it makes taxable supplies. The Karnataka registration does not cover Kerala. A Rs 1 crore limit is not a registration rule here, and surrender is unnecessary.

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