GST Registration for Businesses with Branches in the Same State

• Multiple GST registration in the same state
• Scenario for multiple GST registration
• Conditions for multi GSTIN registration

I have two footwear stores in the same city. I also have a steel and aluminum store, and I am planning to open a footwear store in another city.  

That's growth! Expansion 

While you have all the more reason to have a multi-branch business, it has its own challenges. One thing that stands out is compliance. Yes, it's about the GST.  

One of the common questions that most have is if I have two or more branches in the same state, should I obtain multiple GSTINs? What if I have a different business vertical in the same state? Is it mandatory to take multiple registrations in the same state? 

Before answering the above questions, let's take a step back and understand a little about the fundamentals of GST registration.  

The basic thumb rule is that you need to register in every state from where you intend to make outward supplies. Additionally, the GST registration turnover threshold is at the PAN India level, not at the store or state level.  

Simply put, it is not mandatory to obtain multiple GST registrations if you have multiple branches in the same state. It's compulsory only when you have branches in other states.  

While the answer is clear, will a business be allowed to opt for multiple GSTINs for branches in the same state if desired? To make the scenario a little more complicated, can I have one registration for two different stores with the same business ( like two footwear stores) and opt for separate registration for other business verticals ( Steel and aluminum store) 

Let's detail this.  

Multiple GST registration in the same state

Till January 2019,  a single registration was allowed for all the branches operating in the same state. A separate GST registration was allowed only in the case of more than one business vertical.  

In February 2019, this rule changed. Now, businesses have an option to obtain separate GSTINs for each branch in the same state or union territory, even though the said businesses are not different business verticals. In short, you can have more than one GST registration for multiple branches in the same state.  

For instance, if the footwear store we saw earlier with two footwear stores in the same state then they could choose to have a common GSTIN or register under multiple GST numbers. 

In the case of different business verticals, you were allowed to obtain a separate registration from day one.   

Let's take the example of 2 footwear stores and one steel store. In this case, you can register the steel store separately as it is a different business vertical and have a common GSTIN for both footwear stores.  

Scenario for multiple GST registration in the same state

Conditions for multi GSTIN registration

There are different conditions for obtaining separate registration for the same business with multiple branches in the same state and a business vertical.  

• Uniformity in opting composition scheme across all branches, or in none of them. Simply put, all branches should opt for a composition scheme or pay as a regular dealer.  

• Any supplies between these branches ( registered separately) require a bill of supply/invoice, and GST should be levied. 

Conditions for separate registration for business verticals

• Should have more than one business vertical in the same state 
• Business verticals have not opted to pay tax under the composition scheme 
• Any supplies between these business verticals require a bill of supply/invoice, and GST should be levied 

Additional capabilities of the new version of TallyPrime

The latest version of TallyPrime is filled with numerous features to cater to your GST as well as other business function needs. The new version makes it easy to manage transactions and returns across multiple GSTINS from the same company. This simply implies that at the close of a certain month, you could easily integrate your multi-GSTIN data and handle TDS returns, salary payments, overdue management, and so on with improved efficiency. Here is a quick list of things that you can do using multi-GSTIN feature in TallyPrime:

• Create & manage multiple GST registration details
• Generate GST returns GSTIN-wise
• Easily categorize or identify transactions GSTN-wise
• Tag vouchers to specific GSTINs
• Create multiple voucher numbering series
• Combine return and reports view

Track GST return activities

Read more:

• Best Way to Manage Books of Accounts When You Have Multiple GST Registration (GSTIN)
• GST Return Filing for Businesses with Multiple GST Registration
• Multiple GST registration in multiple states

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