GST registration in multiple states of India
If you are a service provider providing services in more than one state, GST might bring along some problems for you. The new set of rules under GST makes it troublesome for providers that have operations in more than 1 state.
If you are a service provider in more than one state, and I believe, the majority would have operations in multiple states; it would be hugely different under GST.
Why?
Because
- Service providers now have to grapple with a completely new set of rules.
- Many of them are going to be assessed in several states,
- Several of them would have to obtain registration in new states.
When does a service provider need to look at a multi-state registration?
It is only when you have operations in a particular state, which is a place of business or office that you have to register in that state.
For example, you are a Ghaziabad based service provider who seldom provides services in Delhi. Then you don’t need to obtain registration in Delhi.
However, if you have an office in Delhi apart from Ghaziabad, then it becomes mandatory for you to obtain registration in Delhi as well as Ghaziabad.
When you have this kind of setup with more than one state of operation
· you are required to obtain multiple registrations,
· you have to do the compliance of each of those registrations,
· the invoicing has to be organized according to that state and
· the input tax credit also becomes state-centric
Continuing with the above example, in case of multiple state operations, the person would be required to obtain registration in every state where he has an office, GST compliances for every state would have to be complied with individually, invoices raised from every office would have to be organized according to the respective state. And most importantly, input tax credit on input services would accrue the state where such services are received.
In the past, even if you are operating in 20 states, you could have obtained just one registration, which is for the place where you are headquartered. Now you have to break down that tax into relevant states and pay that to the relevant state.
This is the reason that for multiple state service providers, it is a mixed bag at least for the initial one-two years. It is also going to entail significantly high compliances and chances are you will have to deal with problems that you have never dealt with before.
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How and When to Register in Different States under GST?
Have you completed your GST registration but still wondering if you need to register in other states? It’s true, you may have to get your business registered in other states as well. If your operations are limited to a single state, then you need to register in that one particular state. But if you have operations in multiple cities, the story is different.
If you are a service provider, providing services in multiple states without a physical presence there, you only need to get registered in the state of your physical presence/headquarter. But, if you have presence in other states as service provider or goods supplier, you will need to obtain GST registration in all the states you operate in. In this case, you will need to go through individual GST registration in all these states.
GST Registration for Branches & Business Verticals in Different States
According to the CGST Act, suppliers of taxable goods and services are required to be registered under GST in the State or Union territory, from where the taxable supply of goods or services is made. Further, provisions have been provided in the GST Act for obtaining GST registration for branches. In this article, we look at GST registration for branches in detail.
GST registration should be obtained by a taxable person under GST in each of the State or Union Territory, from where the taxable supply of goods or services is made. e.g., if a restaurant operates in the States of Punjab and Haryana, then it needs to obtain separate GSTIN for each of the two states.
The first two numbers in GSTIN are tied to the state of registration. Hence, if a business is operating in two different states, then the first two numbers of the GSTIN would change, while the PAN of the entity would remain the same. Also, in case of more than 1 GST registration within a state, the entity code would also change.
GST Registration for Branches within a State
Separate GST registration can also be obtained for branches within a state for businesses having multiple business verticals. For GST registration to be issued for branches within a state, the following conditions must be satisfied:
- Have more than one business vertical. Business vertical means a distinguishable component of an enterprise that is engaged in the supply of individual goods or services or a group of related goods or services which are subject to risks and returns that are different from those of the other business verticals.
- The business must not be registered to pay tax under the GST Composition Scheme.
- All separately registered business verticals must pay tax on supply of goods or services to another registered business vertical of the same business and issue a tax invoice for such supply.
Obtaining GST Registration for Branches
GST registration for branches or separate business verticals within the same state can be made in FORM GST REG-01. FORM GST REG-01 is the form used by all businesses for applying for GST registration. Hence, the normal procedure for GST registration application and documents required can be submitted by the business for obtaining GST registration.
After submission of GST registration application, it would be forwarded to an Officer for verification and GST registration certificate would be granted usually within 7 working days. The GST registration certificate would show the principal place of business and additional place or places of business.
Need Help Registering your GST Number in any of the 29 States in India?
Virtual Office is the Solution for that, And the best service providers for Virtual Office in Pan India is InstaSpaces Realtech Pvt. Ltd. (https://www.instaspaces.in/)
InstaSpaces have the most reliable and low pricing virtual offices provided in Pan India. Moreover they have great support team and can help you fulfill your requirement for running your business efficiently.
- Core Services and Solutions: Virtual Office for Business Registration, GST Registration, Mail-Handling, Phone Answering.
- Corporate Office and Phone No: 23 Sector 18 Gurgaon IN | +91-888-270-2020
- Presence in India: PAN India, All metro cities, Indore, Noida, Gurgaon
- Website: www.instaspaces.in