As organisations’ business operations expand across India, compliance with the Goods and Services Tax (GST) is becoming increasingly important. The most important question for business owners is whether they need to register for GST in each state. The answer is yes – under GST law, every business must be registered in each state or union territory where it carries out a taxable supply.
This guide explains the concept, legal provisions, process and benefits of obtaining multiple GST registrations in different states in India.
Understanding the Concept of GST Registration
The registration of the business is obligatory under the Goods and Services Tax (GST) system that regulates registration of all businesses with an aggregate turnover above the recommended value as per the given limit in most states – Rs. 40 lakh in goods and Rs. 20 lakh in services (though there are certain exceptions).
Every registered business is allocated a special GST Identification Number (GSTIN) through which returns are filed, invoices are issued, and taxes are remitted.
An enterprise with operations in more than one state cannot have a single GSTIN used nationwide. Rather, it has to seek individual GST registrations in all the states where it has a place of business.
Legal Provision for Multiple GST Registrations
The necessity of the existence of several registrations is based on Section 25(1) of the Central Goods and Services Tax (CGST) Act, 2017, which says:
“Every individual to whom the registration is required by this Act shall apply in every such State or Union Territory in which he is liable to be registered, in such manner and under such conditions as may be prescribed.”
It implies that when a company has a branch, warehouse, or office in one state, another state, then each place is a separate person, as provided by GST and should be registered for GST.
When is Multiple GST Registration Required in Different States?
Seperate GST registrations are required in the following circumstances by businesses:
- Branch offices located in various States: Assuming that your company has offices, outlets or warehouses in more than one state, you have to undergo separate GST registration in every state where taxable supplies are made.
- Service Providers with National Operations: IT companies, consultancies or logistics firms that provide services across multiple states have to register in each state where business or billing operations are conducted.
- E-Commerce sellers that operate state-wide: The online stores or vendors who keep their goods in the warehouses in various states must also be registered separately in different states.
- Production Plants in various states: Manufacturers having production units in more than one state must register at each location in case they are supplying taxable items.
Significant Characteristics of Multiple GST Registrations across States
- The registration of every state is considered an individual tax unit.
- Each GSTIN should have separate returns, invoices, and records.
- Inter-state inter-branch supplies between states are considered to be taxable supplies under Integrated GST (IGST).
- The default or non-compliance in any state registration does not necessarily impact the other, though the whole business reputation might be affected.
Documents Required for Multiple GST registrations
Some of the common requirements during registration of GST in various states are as follows:
- PAN card of the business or entity.
- Documentation of business address (ownership documents, rent agreement, or NOC)
- The identification and address evidence of the authorized signatory.
- Partnership or partnership deed certificate of incorporation.
- Evidence of bank account (cancelled cheque or bank statement)
- Electronic signature of authorized signatory (with companies and LLPs).
- Evidence of the main place of business in every state (electricity bill, rent agreement, lease document, etc.)
Guide to Obtaining Multiple GST Registrations in Different States
Step 1: Visit the GST Portal
Visit the internet GST portal at www.gst.gov.in.
Step 2: Click on New Registration
Select the option of the New Registration under the tab of Services and enter the necessary information, including the PAN, business name, email, and mobile number.
Step 3: Select the Relevant State
During the application, choose the state/ union territory where you are applying to be registered.
Step 4: Provide Business Details
Fill in the trade name, business constitution, address of the principal place of business and other places of business.
Step 5: Supporting Documents Upload
Add all the required papers such as evidence of location, identification and permission paper.
Step 6: Verification and Approval
Once submitted successfully, an acknowledgement reference number (ARN) is created. After this is confirmed by the GST authorities, a unique GSTIN of that state is issued.
Benefits of Multiple GST Registrations in Various States
There are a number of benefits associated with separate GST registrations across states:
- Legal Compliance: Individual registration will make sure that all the requirements of Section 25 of the CGST Act are met so that no penalties or conflicts are caused.
- State-Wise Tax Management made simple: The GSTIN of each state enables businesses to submit returns, remit taxes and keep accounts individually, and this enables compliance management to be easier.
- Better Supply Chain Control: In businesses with multiple states with warehouses or distribution centres, separate GST registration makes it easier to cut across states in logistics, invoicing and stock transfers.
- Business operations flexibility: Multi-registrations enable the companies to grow, alter, or shut down state-related operations without interfering with the rest of the branches.
- Improved input tax credit (ITC) utilisation: Input Tax credit is allowed to every registered entity to claim individually on purchases in that state, which decreases tax liability.
Example
Say, XYZ Ltd. is engaged in the furniture trading business. The company is having its first outlet in Pune, the state of Maharashtra. Further, they also opened an outlet in Chennai, the state of Tamil Nadu. As the outlets are located in different states within India, the business entity or person should obtain GST registration in both states.
This shall be reflected in the GSTIN obtained by the entity, as the format of the GSTIN is as follows:
State Code – PAN of Person/Entity – Entity Code – Blank Digit – Check Digit.
This makes the same a 15-digit number, with the state code changing as the business’s state changes. The state list shall be as follows:
| SL. NO. | STATE | STATE CODE |
| 1 | Andaman and Nicobar Islands | 35 |
| 2 | Andhra Pradesh | 28 |
| 3 | Andhra Pradesh (New) | 37 |
| 4 | Arunachal Pradesh | 12 |
| 5 | Assam | 18 |
| 6 | Bihar | 10 |
| 7 | Chandigarh | 04 |
| 8 | Chhattisgarh | 22 |
| 9 | Dadra and Nagar Haveli | 26 |
| 10 | Daman and Diu | 25 |
| 11 | Delhi | 07 |
| 12 | Goa | 30 |
| 13 | Gujarat | 24 |
| 14 | Haryana | 06 |
| 15 | Himachal Pradesh | 02 |
| 16 | Jammu and Kashmir | 01 |
| 17 | Jharkhand | 20 |
| 18 | Karnataka | 29 |
| 19 | Kerala | 32 |
| 20 | Lakshadweep Islands | 31 |
| 21 | Madhya Pradesh | 23 |
| 22 | Maharashtra | 27 |
| 23 | Manipur | 14 |
| 24 | Meghalaya | 17 |
| 25 | Mizoram | 15 |
| 26 | Nagaland | 13 |
| 27 | Odisha | 21 |
| 28 | Pondicherry | 34 |
| 29 | Punjab | 03 |
| 30 | Rajasthan | 08 |
| 31 | Sikkim | 11 |
| 32 | Tamil Nadu | 33 |
| 33 | Telangana | 36 |
| 34 | Tripura | 16 |
| 35 | Uttar Pradesh | 09 |
| 36 | Uttarakhand | 05 |
| 37 | West Bengal | 19 |
Now, we can say that the state code will change the GSTIN issued by the GST Authority to its applicants. This is done despite the business entities holding the same PAN and branches being opened in different states. For this reason, the business should have a physical presence in such a state. Mere transactions or supply of goods or services or both by the person in different states shall not account for the business or supply in various states. This is because the entity does not have any physical presence, office, or outlet in such a state to run its operations or make supplies.
Say XYZ Ltd. is trading in furniture goods and has an outlet in Pune, Maharashtra. XYZ Ltd. was approached by Mr A, based in Bangalore, Karnataka, to purchase exquisite furniture for his home in Bangalore. XYZ Ltd. is delivering the same for Mr A at his house in Bangalore. This does not require XYZ Ltd. to register in Karnataka state, as there is no physical presence, outlet, or office setup by XYZ Ltd. there, making them ineligible for registration in a different state.
Conclusion
Obtaining GST registrations in different states is not only a legal requirement but also a business necessity for companies with multi-state operations. It is essential to manage tax in a compliant, efficient and transparent manner.
Businesses should review their operations, properly document their transactions, and maintain separate records and returns in each state before obtaining GST registration. This way, businesses will be free to operate smoothly under India’s unified GST while remaining compliant across different locations.
