Jai Hind Ltd. wants to start another unit in Jaipur (Rajasthan) where the company wants to obtain GST registration under Normal scheme to take advantage of ITC. Can it do so?

GST Registration for Multiple Units (Composition vs. Normal Scheme): According to the proviso to Section 10(2) of the CGST Act, 2017, where more than one registered person are having the same Permanent Account Number (PAN) issued under the Income-tax Act, 1961, the registered person shall not be eligible to opt for the composition scheme unless all such registered persons opt to pay tax under this sub-section. This implies that if a taxpayer has multiple business verticals or units under the same PAN, and one unit opts for the composition scheme, then all other units under the same PAN must also opt for the composition scheme. They cannot have one unit under the composition scheme and another under the normal scheme. Therefore, if Jai Hind Ltd. opts to take registration in Jaipur (Rajasthan) under the normal scheme to take advantage of Input Tax Credit (ITC), it will have to shift its existing unit in Delhi from the composition scheme to the normal scheme. Otherwise, it will not be able to opt for the normal scheme in Rajasthan while continuing with the composition scheme in Delhi.