GST
Composition for one GSTIN when another GSTIN is regular
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Facts
No. All registrations under the same PAN must be in the same scheme. If one GSTIN is in composition, all others on that PAN must also opt for it. If any one is ineligible, none can opt.
Provisions and law
- Sec 10(2), CGST Act 2017Lists who cannot opt, such as inter-State outward suppliers and notified manufacturers; all registrations on the same PAN must opt together
- Rule 3, CGST Rules 2017Intimation to opt in CMP-02 before the start of the financial year; ITC-03 within 60 days for ITC on stock
Analysis
Example: Ramesh has a regular GSTIN for his wholesale business that sells to other States, and wants composition for a new retail counter. Since the wholesale business makes inter-State sales, it cannot opt, so the retail counter cannot either. Some owners use a separate legal entity with its own PAN, but that must be a genuine separate business.
Conclusion
- List all GSTINs on your PAN
- Check if every GSTIN is eligible
- If yes, file CMP-02 for each
- If any is ineligible, keep all GSTINs in the regular scheme
A Savvy can do this for you
Opting into composition, CMP-02
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