For years businesses with operations in more than one state have objected to having to file a new GST application each time they enter a new state, even though it is the same PAN and the same company involved. The difficulty in this area has just been reduced by a small amount, and those people who are dealing with multi-state GST registrations should be aware of the changes.
What's New on the GST Portal?
GSTN has introduced a Multi-State Registration facility, which allows a taxpayer to apply for registration in multiple states or union territories via a single application, using what is referred to as a master Temporary Reference Number. Rather than having to log in to each state separately and re-enter the same business details every time, applicants now have to complete a common profile once, after which that information is automatically transferred into the state-specific TRNs created for each of the locations chosen.
This new facility is accompanied by another recent improvement to the portal, namely the geo-coordinate-based auto-population of the state and central jurisdiction in Form GST REG-01, which determines the correct jurisdiction by referencing the applicant's location coordinates rather than relying on guesswork.
Why Multiple GSTINs Are Still Required ?
It should be made clear that this update has simplified the application process, not the basic legal structure. Since Section 25 of the CGST Act provides that GST is administered state by state, a business that operates in more than one state still ends up with a separate GSTIN for each state, each one being identified by its individual two-digit state code. Each of these registrations is considered a separate entity when it comes to invoicing, claiming input tax credits, and filing returns, and that aspect of the law has not been altered by this update.
Who Needs Multi-State GST Registration?
It also applies to companies which have branch offices, warehouses, or retail outlets in more than one state, to businesses making inter-state supplies regardless of the amount of turnover, and to e-commerce sellers who dispatch their goods from various locations. A business that has only one state of operation usually only requires a single registration in that state, further locations being added as additional places of business under the same GSTIN.
Pre-Requisites Before Applying
Before beginning the application, a business must make sure that it has a valid and verifiable address in each new state since verification of the address of business is carefully checked, have the PAN and the existing GSTIN details to hand for reference in the various applications, and ensure that the details of the authorised signatory together with their digital signatures or access to e-verification are ready for each state for which the application is being made.
Documents Required
Standard documents consist of the business's PAN, evidence of its constitution such as the incorporation certificate or partnership deed, proof of address for the business location in each state, a bank account statement or a cancelled cheque, identification and address proof for the authorised signatory, and photographs of the proprietor, partners, or directors where applicable.
The Procedure, Using the New Facility
To access the Multi-State Registration option on the GST portal, the applicant completes the common business profile once and then chooses each state or union territory in which registration is needed. When the form is submitted, the portal issues individual TRNs for each of the selected states, automatically carrying forward the common details. The applicant then logs into each TRN separately in order to fill out Part B of the application, upload the state-specific documents such as the local address proof, and submit the application for verification. After approval, each state application leads to its own GSTIN, and the taxpayer will continue to file separate returns for each of them in the future.
Other Relevant Information
It is also worthwhile to watch closely the wider change that the CBIC is said to be developing, namely a unified framework based on PAN which would allow businesses operating in multiple states to deal with a single central authority when it comes to audits and investigations, even if the state-wise filings still take place separately. While this initiative has not yet been implemented, it does indicate the direction the GST administration is moving in for companies that have a multi-state presence. With the new application format, accuracy is still more important than speed, since each detail entered into the common profile is reflected in all the state-specific TRNs derived from it.
Even though the portal is becoming faster and although it is applied correctly across several states, matching the documents to each jurisdiction and keeping the post-registration filings in line still requires careful attention. Corpzo provides businesses with full assistance for multi-state GST registration, from preparing the documentation specific to each state down to managing ongoing compliance on a GSTIN basis, meaning that expanding into new states won't result in unnecessary delays when it comes to registration.