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 havetwo 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 aluminium store)
Let's detail this.
TallyPrime's multi-GSTIN support in the same company
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.
Multi GST Allowed?
Two or more branches in the same state
Two different business verticals in the same state
Two or more branches in different cities of the same state
There are different conditions for obtaining separate registration for the same business with multiple branches in the same state and a business vertical.