Taxable persons having multiple business verticals :
Normally, a person should obtain single registration in State, even if he has multiple factories, godowns or sales offices or branched within a State or Union Territory.
However, a person having different categories of business (termed as ‘business verticals’), he can, at his option, obtain multiple registration within a State or Union Territory.
If a person obtains separate registration with same PAN number within State or union Territory, these will be treated as establishments of distinct persons for the purposes of CGST Act – section 25(5) of CGST Act.
Thus, they will be treated as separate taxable persons for all purposes of GST, including free supply, tax invoice, job work, returns, payment of taxes etc.
A person having multiple business verticals in a State or Union Territory may obtain a separate registration for each business vertical, subject to such conditions as may be prescribed – proviso to section 25(2) of CGST Act.
He must have income tax PAN – section 25(6) of CGST Act.
As per section 2(18) of CGST Act, “Business vertical”means a distinguishable component of an enterprise that is engaged in supply of individual goods or services or a group of related goods or services which is subject to risks and returns that are different from those of other business verticals.
For the purpose of this clause, factors that should be considered in determining whether products or services are related include —
(a) the nature of the products or services;
(b) the nature of the production processes;
(c) the type or class of customers for the products or services;
(d) the methods used to distribute the products or provide the services; and
(e) the nature of the regulatory environment (wherever applicable), including banking, insurance, or public utilities.