Under the GST Act, Muralidhar would need to apply for separate registrations for his Chai and Coffee business and his paper cups business. According to the data provided, his turnover for the paper cups business has exceeded the threshold of ₹20 lacs, which requires registration under GST. Additionally, since he is selling his paper cups in other states, he would also need to register for inter-state supply.

While Muralidhar may be concerned about paying more tax by registering both businesses, it is important to note that GST is a destination-based tax. This means that the tax liability is determined by the place of supply. By registering both businesses separately, Muralidhar can accurately determine the tax liability for each business based on their respective turnover and place of supply.

It is advisable for Muralidhar to consult with a tax professional or GST expert to understand the specific registration requirements and implications for his businesses.