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gst registration

mohitgupta2103@gmail.com (mohitgupta2103@gmail.com) (110 Points)

26 September 2018

if a person is already registered under GST as a proprietor of firm, now he wants to open a new proprietorship concern in the same state in which he is already registered with different trade name of new firm, though nature of business remains same. whether he has to apply for fresh registration as trade name is going to be different? kindly clarify.

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2 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 26 September 2018

It will operate under the same GSTIN as the new firm cannot be treated a separate business vertical just because the trade name is different.

For a new business to be treated as a separate business vertical, it has to deal in separate goods or services having separate risks and returns.

- Further, refer Sec. 2(18) of CGST Act.

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mohitgupta2103@gmail.com (mohitgupta2103@gmail.com) (110 Points)
Replied 26 September 2018

but when the goods are to be purchased from the seller under new trade name, the seller will file gstr1 for my gstin which is already registered with different trade name, then the goods purchased will be reflecting under the earlier trade name. I think there are some practical issues to be dealt with.