This is one of the tricky questions that often arises when businessmen tend to do business across multiple states or simply offer services across multiple states, apart from the state where they have been registered. There is lot of confusion on this (GST ) and this blog tries to address this ambiguity, using few practical scenarios.
Let’s take the first scenario. Assume that you are a service provider, who has operations in only one state. In such a scenario, GST is going to be quite easy for you, as you need to have a single registration from where you are operating. This way, you can ensure minimal compliance, apart from getting more input tax credit.
Now, let’s take another scenario, where you are offering services in other states, apart from the state, where you have been registered. Even in such a scenario, you are required to have only one GST registration pertaining to the state, where you have the registered office. Simply stated, you can operate with one GST registration, though you may be offering services in multiple states.
Now, let’s understand a typical scenario, where you would be operating across multiple states, apart from your home state. Or you may be on the verge of establishing an office in other states to expand your business. In such a scenario, you would be required to register in that particular state(s) as well, where you intend to open your office or expand your operations. This is quite cumbersome and complex, considering that you need to have an individual GST registration across each state, where you intend to operate.
In the pre-GST era, though your business might be operating in multiple states, you may still require a single registration, where you have established the office. However, in this post GST era, this single tax has been split that need to paid state wise. This becomes a headache for companies operating across multiple states; a typical example being the banking sector, which operates across Pan India. Though there have been requests to minimize this impact, till date, nothing much has materialized. Let’s hope for the best in the coming days that can ease the burden of multiple GST registrations.
Need advice on GST matters or help in smooth filing of GST returns to ensure timely compliance? Feel free to get in touch with our experts at 8099512513 or email us at email@example.com. Also, to make you a better tax planer, we invite you to explore our state-of-the-art GST solution – XaTTaX that offers a host of benefits, apart from helping you in seamless tax filing.