“Growth is never by mere chance, it is the result of forces working together”. Business expansion is the stage of the business cycle where the actual GDP grows for two or more successive quarters, moving from a crib to top. This is naturally complemented by an increase in employment, customer assurance, and equity markets. Expansion is also referred to as an economic retrieval. The commercial is where you want to constantly expand your margins. The business expansion or opening branches may be in the same location or in a different vertical. New branches and tax-related works go hand in hand. If you are planning for business growth or looking for GST registration in Chennai then this article gives you an insight into GST registration for branches.
Is Separate registration needed for new branches?
We should clearly understand the need of registration if a new branch is opened within the state or in other state in India. Do not confuse the registration process for supply of goods within the state or outside the state.
- Branches within the state: Preferably there is no need for separate registration for a new expansion within the state. You don’t need to follow the full registration process for a new branch, but you need to furnish the branch with full details in the registration certificate of the central office. The GST portal has given an option to modify and add the new branch in the registration certificate.
Login the GST portal and follow the below navigation to amend the details under the registration certificate.
- Services >> Registration >> Amendments of registration of core fields.
For the purpose of adding the branch details, no additional documents or proof required for submission. It is subject to verification and approval by the department. Based on the approval the details will the updated in the system automatically.
2. Branches in other state: A fresh registration is required for a new branch in other state, since the first 2 digit number of your current represents the state code in the GST. Procurement of new registration is as similar to the previous registration. The submission is made in GST REG-01 on the GSTN portal, acknowledgement of which is produced in Form GST REG-02. Upon verification, the GSTN is allotted to the claimant in Form GST REG-06. Having same permanent account number in the allotted number, the State code will be changed in the new GSTIN.
Fresh commerce vertical
Obtaining GST registration for a business vertical is voluntary and upon the discretion of an individual. Therefore, it’s up to you whether or not you wish the separate registration or not. The business verticals are recognized separately due to its diverse level of risks and returns. Therefore, in my opinion, a separate registration is most well-liked for the straightforward administration of business and its monetary knowledge. Subject to having completely different business vertical as outlined below, you’ll be able to get separate registrations within the same State with the subsequent conditions:
(a) If you have got obtained the registration as composition dealer underneath section nine, you’ll not register as a traditional dealer underneath section ten of Act;
(b) just in case of provides created by one to a different business vertical, aforementioned vertical shall pay tax and additionally issue a tax invoice for such provide.
Let’s perceive if your new business field are often termed as business vertical. Business vertical is outlined underneath Section 2(18) of the Central merchandise and Services (CGST) Act. It defines business vertical as a distinguishable part of Associate in Nursing enterprise that’s engaged within the provider of individual merchandise or services or a gaggle of connected merchandise or services that is subject to risks and returns that area unit completely different from those of the opposite business verticals.
Here, to see whether or not merchandise or services area unit connected, the subsequent factors area unit considered
(a) the character of the products or services
(b) the character of the assembly processes
(c) the kind or category of consumers for the products or services
(d) the ways wont to distribute the products or provider of services
(e) the character of the regulative setting (wherever applicable), together with banking, insurance, or public utilities
If you establish it as business vertical, you’ll apply for brand new GST registration as per the conditions. If your business vertical is establish wherever previous registration is obtained, there’ll be absolute confidence to spot it as business vertical. A recent registration are going to be required for it being established in another State
Finally, if you’re already having unregistered multiple branches or business verticals, at intervals or outside State, the pertinence of GST is going to be set supported the whole turnover of all. As you register the business within the initial place and arrange for its growth, you would like to know the necessity of being compliant. Being compliant with GST isn’t solely obligatory however necessary for business growth in the future. This conjointly applies to the other regulation for your business.
If you are planning to expand your business or GST registration in Chennai then consult our tax consultant in Chennai who can assist you starting from business set-up, registrations, brand protection, and also with tax return filing.