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How much proprietor firms against one Pan and adhaar

ankush soni (student) (100 Points)

02 June 2020

dear all experts,
the question is how many firms can be registered against single pan and adhaar number which is already registered either as regular or composition dealer. futher if it can be more than one then weather a new gstn will be alloted ? pls reply

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6 Replies

GST Consultant (Tax Consultant) (894 Points)
Replied 02 June 2020

There is no such restriction under any law for creating proprietary firm. As fas as GST is concern GST registration has been made state wise.

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CA SANDESH MAHIPAL (Practicing in GST and MSME ) (1985 Points)
Replied 02 June 2020

Multiple questions raised, go through below points:-
1. GST registration is state wise. Based on single PAN, one can get multiple registrations in different states as well as same state.
2. composition is a scheme, which is PAN based. Once opted, it will be applicable on all GSTINs registered on single PAN.
3. On a single PAN, one can register multiple firms, there is no restriction on this.
4. Adhar is just a ID proof, it has nothing to do with any limits for registerations anywhere.

Hope you got the answer else clarify your exact query.

Regards

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

Agree with Sandesh Sir...
Well Explained...👍

1 Like

ankush soni (student) (100 Points)
Replied 02 June 2020

Dear sir I got the proper answer.
but from ur second point one new doubt arose pls clarify it.
Taking an example, a composition dealer applies for a new gstn in same state as regular dealer with a new firm name. will he be allowed for registration as regular dealer as according to your point no 2 he has already opted for composition scheme and accordingly it will be applicable for all multiple gstns taken by him, if any. in this way he may not be a composition dealer as well as a regular dealer although with different firm name and different gstn. am I taking this right sir ?

Shivam RC (Student) (23683 Points)
Replied 02 June 2020

As per the Proviso to Section 10(2) of the CGST Act 2017, "Where more than one registered persons are having the same Permanent Account Number [issued under the Income-tax Act, 1961], the registered person shall not be eligible to opt for Composition Scheme unless all such registered persons opt to pay tax under the Provision of sub-section (1) of Section 10.

So Composition Scheme Dealers cannot opt to pay tax as Regular Dealer in one State and Composition in one or other.

All the Registration needs to be obtained under Composition Scheme only.