GST Registration for a New State

Overview

GST is an indirect tax which was introduced on 1 July 2017 and applicable throughout India providing Compliances under one umbrella to live life. In case of any company working in multiple states, under the GST law they need to register themselves for business throughout India as well as every single nation where their occurrence is there. Beer as a company, meaning having a physical office, warehouse or sales activities.

If you are spreading your business to a new state, and once your turnover crosses the maximum limit (Rs 20 lakh for most states, Rs 10 lakh for some special category states), then registration of GST may be compulsory. Even if your business does not meet this threshold, voluntary registration is advisable, as it brings a host of benefits like input tax credit and ease of compliance with state laws.

Getting GST in a new state is easier, however, proper steps need to be followed to prevent fines for non-compliance.

Benefits of New State GST Registration

Now, we will talk about the advantages of taking GST registration in a new state at the time of adding sales in a different state.

1. Legal Compliance

It is illegal to run a company without being registered under GST, punishable by very high fines. GST law mandates registration of business for every state from which business transactions are happening, or intend to provide services from there.

2. Input Tax Credit (ITC)

Claiming Input Tax Credit (ITC) on the taxes that you pay on your purchases is one of the key benefits of being registered under GST. Since you have 2 separate registrations, one in each state, therefore you will be able to claim ITC (input tax credit) on the purchases made in that respective state and as a result of which your overall tax liability would get reduced.

3. Easy Interstate Business

The benefit of GST is that it makes business interstate easier. A single GST registration in multiple states helps you send goods from one state to another without having to worry about the other form of state taxes such as VAT or CST.

4. Brand Credibility and Expansion

A GST registered company is considered authentic and trustable. This can greatly enhance your goodwill among the consumers as well as the suppliers in case you are planning to expand business to a new region.

5. Ease of Compliance

With the introduction of GST, it would provide businessmen to be able to handle their tax compliance through a common taxation software. This simplifies the process of filing returns, making tax payments, and other statutory compliances for multiple states.

Procedure to Get GST Registration in a New State

Registering for GST in a new state follows a series of online steps. It’s important to follow each carefully to ensure the registration process is smooth.

1. 1. Visit the GST Portal: Go to the official GST portal at https://www.gst.gov.in/. If you are already registered in another state, log in using your existing credentials.
2. 2. Initiate a New Registration: After logging in, click on ‘Services’ → ‘Registration’ → ‘New Registration’. Choose the option for ‘New GST Registration’ and select the state where you plan to expand.
3. 3. Fill in Business Details: You will need to provide the name of your business, PAN number, email address, and phone number. A Temporary Reference Number (TRN) will be generated for future tracking of the application.
4. 4. Submit Relevant Details: Complete the registration form by entering business details such as:
   • a) Type of business (sole proprietorship, partnership, etc.)
   • b) Principal place of business (new office or warehouse in the state)
   • c) Authorized signatories and partners/directors
5. 5. Upload Documents: Upload the required documents as proof of identity, business address, and ownership.
6. 6. Verification: After completing the form, submit it for verification. You may be asked to verify the application via OTP (one-time password) sent to your registered mobile number and email.
7. 7. Receive GSTIN: Upon successful verification, your new state-specific GST Identification Number (GSTIN) will be generated, typically within 3 to 7 working days.

Documents Required for GST Registration in a New State

• 1) PAN Card of the Business
• 2) Proof of Business Address (lease agreement, property tax receipt, or utility bill showing the address of the office/warehouse in the new state)
• 3) Identity and Address Proof of the Applicant (Aadhaar card, voter ID, or passport for the authorized signatory)
• 4) Bank Account Details (copy of the canceled cheque or bank statement to verify your bank account)
• 5) Photograph of Authorized Signatory
• 6) Proof of Business Incorporation (Certificate of incorporation, partnership deed, or LLP agreement, depending on your business structure)
• 7) An authorization form or power of attorney if someone else is filing the application on behalf of the business

Frequently Asked Questions (FAQs)

Q1. Can I use the same GSTIN for multiple states?

No, each state where you do business requires a different GSTIN.

Q2. What is the penalty for not registering in a new state?

By not registering for GST in a new state where you are compelled to do so, you can end up paying a penalty of 100% of the amount or ₹10,000, whichever is higher.

Q3. How long does it take to get a new GSTIN?

Typically, the issuance of a new GSTIN occurs within 3–7 working days following the application.

Q4. Do I need to submit returns separately for each state?

Yes, in the case of having multiple GST registrations, you are required to file GST returns separately for each state.