GST Registration for Branches: Rules & AAR Ruling

Harish Varun

18 April 2025

21,892 4 minutes read

Learn about GST registration for branches in India. Understand the need for separate GST registration across states and the process involved. Get expert assistance!

Table of Contents

GST registration for branches is a key compliance requirement for businesses operating in multiple states across India. Each branch must obtain its own GSTIN from the state where it operates, ensuring transparency and accountability in taxable transactions

What Are the Provisions Regarding GST Registration?

As a business entity, you can have just one GST number for each of your businesses operating in the same state.

However, as per the GST rules, it is mandatory that a business entity obtain a GST Firm Registration in each of the Union Territory or states, from where the sale of the taxable goods or services takes place. For instance, if you open restaurants in the states of Maharashtra and Delhi, obtain separate GSTIN for Maharashtra and Delhi.
The format of the GSTIN number is such that the first two numbers in a GST registration number represent the state in which the business has registered its GST. Therefore, if a business operates in two various states, then the first two digits of the GST registration number must reflect the state of registration. However, the PAN of the entity would remain the same.

Is Separate GST Registration Needed for Different Branches?

The Authority for Advance Ruling (AAR) has passed one of the most awaited rulings which is considered a landmark ruling for GST Registration for Branches in India since it has shut down the prevailing interpretation of GST registration law.

Let us first look at the facts of the case to understand the ruling better.

The importer of non-coking coal and a manufacturer of petroleum products with its head office or registered office in Mumbai is the applicant in this case.
The applicant deals with trading of non-coking coal in various states, and importing it at various ports in India, and is registered with the GST department in all such places. The applicant purchases from dealers from various states in India.
The company claimed that the coal will be imported by them and will be stored by them in various states under the Maharashtra GST number. The applicant company also submitted that they shall also sell the coal under the same GST number of Maharashtra.
The company wants to cancel the GST number registered in different states and do business only from their Head Office or Registered Office in Mumbai under the GSTIN registered in Maharashtra.
The company mentioned that it obtained provisional GSTIN in different states only because it was necessary to do so as per the earlier VAT regime as required under the VAT laws.
The AAR ruled that the company does not require separate GST registration even in case the godowns are situated in different states. A single GST registration shall work.

Authority for Advance Ruling (AAR) Under GST

As per the case, the company will import the said goods at various Indian ports, while they have their registered or head office at Mumbai, with a Maharashtra GSTIN. After the company imports the goods, it will store them in various godowns located in various states. The company would then clear the goods from the godowns or the warehouses in the name of their registered head office located in Mumbai.

The AAR had to analyses if the applicant can raise the invoice from its Mumbai head office for the products received at various ports located in different Indian states.

In this case, the supply place is the location of the importer which is situated in Maharashtra. Therefore the company will be clearing the goods by paying IGST from their Mumbai GSTIN. As per the AAR, the company though has various godowns located in various states, since its place of supply of taxable goods is from its Mumbai headquarters, the applicant can clear the goods by issuing invoices from its Mumbai office on payment of IGST in the state of Maharashtra, Therefore, the company does not have to take separate registration in other states.

GST Registration for Branches in the Different States

When running a business with branches in multiple states, you must get a GST registration for each state. For example, if you have restaurants in both Maharashtra and Delhi, you need separate GST numbers for each location.

In a GST number, the first two digits represent the state. So, if your business operates in two states, these digits will differ for each state’s GST number. However, the PAN number of your business will stay the same. Additionally, if you have multiple GST registrations within the same state, the entity code will change to distinguish each registration.

Obtaining GST Registration for Branches

To register your business for GST, use FORM GST REG-01. This form is required for any business or individual registering their branches or separate business units within the same state.

During the registration process, you must submit the necessary application and documents. After submitting the application, an authorized officer will review it along with your documents. If everything is in order, you will receive your GST registration certificate within 7 working days. This certificate will list your main place of business and any additional locations. The process may also involve GST registration fees, depending on whether you seek professional assistance to ensure accurate documentation and compliance.

Conclusion

This judgment by AAR will largely have a beneficial impact on the well-settled supply chain of businesses. As business experts, Zolvit suggests that you must get a different GST number if you wish to manage your business entities and GST Registration for Branches separately. But if you intend to cut down on administration costs, you might as well opt for a single GST number for the same business in the same state. For business entities and branches across various states, if you have different places of supplies, you should obtain a different GST number in each state.

Business experts at Zolvit will analyze all your business queries related to GSTdepending upon the structure of your business, and provide you with relevant and apt solutions. To register your business for GST, contact Zolvit now.

FAQs on GST Registration for Branches

Can I use one GST number for multiple states?

No, a single GST number is not applicable for multiple states. Each state requires a separate GST registration, ensuring compliance with the specific tax regulations and facilitating accurate reporting of transactions in each state.

Is GST same for all states?

While GST is a nationwide tax system, certain aspects may vary by state, such as state-specific GST rates. Overall, the fundamental structure of GST remains consistent across all states.

Is separate GST registration required for each state?

Yes, separate GST Registration for Branches is mandatory for each state where business operations are conducted. This ensures compliance with state-specific tax regulations and facilitates accurate reporting of transactions in each region.

Can two companies have the same GST number?

Yes, each company is assigned a unique GST identification number. This distinctive identifier is crucial for distinguishing between businesses and ensuring accurate taxation and compliance.

How do I register for GST in multiple states?

To register for GST in multiple states, businesses need to submit separate applications for each state. The process involves providing necessary documentation and complying with state-specific requirements.

Can I do business in other state with GST?

Yes, businesses can operate in other states with GST registration. However, obtaining separate registrations for each state of operation is necessary to comply with regional tax regulations.

How is GST shared between states?

GST revenue is shared between states through a mechanism called Integrated Goods and Services Tax (IGST), which ensures a fair distribution of tax revenue among states based on consumption.

What is the GST limit for states?

There is no specific limit for GST at the state level. However, each state may have its own threshold for mandatory GST registration, based on the aggregate turnover of businesses operating within its jurisdiction.

Which state pays the most GST?

The contribution of GST varies, and states with higher economic activities and consumption tend to contribute more. The distribution is determined by the GST Council based on a formula that considers factors like population and economic indicators.

Can we change state in GST registration?

Businesses can change their state of registration under specific circumstances, following the prescribed procedures and obtaining necessary approvals from the tax authorities.

Can I register multiple GST on the same address?

Yes, multiple GST Registration for Branches can occur at the same address, provided each registration corresponds to a distinct business entity or division operating independently.

Can I use my friend's GST number?

Using another person's GST number without authorisation is against the law. Each business entity must obtain its unique GST Registration for Branches for legal compliance and accurate taxation.

Can I have 2 trade names in GST?

Yes, businesses can have two trade names registered under the same GST number, facilitating flexibility in branding and operations.

Can I use GST for personal purchase?

GST is primarily designed for business transactions, and personal purchases are generally not subject to GST. However, specific exemptions and regulations may apply.

In which states does GST not apply?

GST is a nationwide tax system, and it applies to all states and union territories in India. There are no states where GST does not apply.