Got Two or More Branches in the Same State? Find Out if You Need Multiple GST Registration (Multiple GSTIN)

Got Two or More Branches in the Same State? Find Out if You Need Multiple GST Registration (Multiple GSTIN)
|Updated on: July 27, 2022

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.  

Coming Soon

TallyPrime's multi-GSTIN support in the same company

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 

Scenario 

Multi GST Allowed?

Y/N 

Two or more branches in the same state 

Yes 

Two different business verticals in the same state 

Yes 

Two or more branches in different cities of the same state  

Yes 

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.  

Conditions for two or more branches in the same state  

  • 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 

Coming Soon 

TallyPrime's multi-GSTIN support in the same company. 

Using the same company, soon, you will be able to manage multi-GSTIN right from invoicing to filing returns GSTIN-wise. Thus helping to manage books of multiple branches in a consolidated way.  

If you wish to maintain separate books of accounts for each GSTIN, all you need to do is create a separate company for each GSTIN and manage your books. It is already supported.

TallyPrime

Compliance solutions right from invoicing to filing returns to e-invoicing, are just a click away.