How to File GST Returns for Multiple GSTINs?

Filing GST returns can be complex when juggling multiple GSTINs. This guide provides insights on how to streamline your GST return filing for multiple GSTINs, ensuring accuracy while saving you time and effort. 

How to File GST Returns for Multiple GSTINs?

Businesses that operate in multiple states or have multiple units often possess multiple GST Identification Numbers (GSTINs). Each of these unique numbers requires separate GST return filings. As you can imagine, this can be cumbersome, especially if handled manually. 

Thankfully, with the integration of technology into the taxation system, there are now solutions available to streamline this process. Here's a guide on how to handle GST returns for multiple GSTINs:

• Document Preparation: Maintain separate books of accounts for each GSTIN and for each vertical/business under a single GSTIN. Maintain essential documents such as sales and purchase invoices, expense bills, tax payment receipts, etc., which will streamline the filing process and avoid difficulties at the time of audit or while responding to a tax notice. 
• Choose Software with Multi-GSTIN Support: Consider GST filing software like Clear GST that uses hyper-automation for error-free GST filings. Being one of the best platforms for GST return filings in India, it is meticulously designed to manage data for each individual GSTIN you possess, ensuring accuracy and efficiency throughout the process.
• Data Consolidation: Most advanced GST software platforms can pull data at a PAN level, which is extremely useful for businesses operating with multiple GSTINs. You can consolidate all the data into one place, making it easier to manage. Software such as Clear GST also has PAN-level reconciliations and PAN-level filing options for faster and more efficient GST return filings.
• Auto-fill Feature: Using the auto-fill function, GST filing software will populate all the fields in forms such as GSTR-3B and GSTR-1. It can auto-fill these forms for each GSTIN separately, ensuring that the data is accurate and consistent across all returns.
• Verification and Submission: Before final submission, always verify the populated data. Once verified, submit the return for each GSTIN separately.

Role of Technology:

Technology plays a crucial role in making this process smoother. Platforms with multi-GSTIN support are designed to pull transactional data across PAN and auto-fill returns, thereby reducing the time spent on manual entry and increasing accuracy.

Can I Use One GST Number for Multiple Businesses?

The GST law allows businesses to register multiple verticals under a single GST number within the same state. The decision to opt for single or multiple GSTINs for different verticals is at the discretion of the business owner. If you choose to register different verticals, you have to maintain separate bookkeeping, issue separate invoices, and file returns separately for each vertical, even though they are under a single GSTIN. Even documentation with regard to input tax credit will need to be maintained individually for both businesses and common credit must be allocated in accordance with the GST rules.

Using multiple GSTINs requires businesses to file separate returns for each GSTIN. Let's understand this better through some real-world-like scenarios:

1. Sunshine Retailers

Business Overview: Sunshine Retailers is a well-known fashion brand with outlets in Delhi, Hyderabad, and Bangalore, each with its own GSTIN due to state-specific operations.

2. Zenith Tech Solutions

Business Overview: Zenith Tech Solutions offers both hardware and software services. They have separate GSTINs for each division in Mumbai.

3. Nature's Delight

Business Overview: Nature's Delight operates organic grocery stores with four locations in Goa, all under a single GSTIN.

Multiple GST Registration in Different States/GST Registration for Multiple States

As per the GST law, if a single business entity operates in multiple states, each operational unit is considered to be a ‘distinct person’. This legal framework mandates that you must have a separate GSTIN for each state in which you have a business presence. In simpler terms, your business units in Maharashtra and Delhi, for example, will be treated as separate entities, each requiring its own GSTIN. This is crucial not just for the purpose of return filing but also for Input Tax Credit (ITC) claims, which also need to be done state-wise.

Example:

In conclusion, while technology has simplified the process of filing GST returns for multiple GSTINs, a clear understanding of the legal requirements is equally essential. Whether you're juggling multiple verticals in the same state or dealing with multiple state operations, keeping abreast of the GST provisions can save you time, money, and potential legal complications. 

FAQs

Can a single person have multiple GSTINs?

Yes, a single person can have multiple GSTINs, especially if they operate different businesses or have business operations in multiple states. Each operational vertical and state will require its own GSTIN.

Can I apply twice for GST registration?

From a legal standpoint, acquiring two GST registrations for an identical business vertical within a single state isn't permissible. That said, if your business structure is diversified into various verticals or if it spans multiple states, only then can you obtain unique GST registrations for each.

Can I register two different businesses under one GST number which has a different trade name?

Yes, you can register two different businesses under one GSTIN if they are in the same state and have different trade names. This is known as a vertical business under GST. 

Can a company have 2 GST numbers in different states?

Yes, a company is legally required to have different GST numbers if it operates in different states. This falls under the category of ‘distinct persons’ under the GST Act, and each state’s operations will need to be registered separately.

How do I register for GST in multiple states?

If you're conducting business across multiple states, you will be obligated to obtain unique GSTINs for each state you have operations by submitting separate applications. You can do this through the official GST portal. Each state registration will require its own set of documentation, including proof of business operations in that state.

Can I have one GST number for two businesses in the same state?

From a legal standpoint, if the two businesses come under the same PAN and are not different business verticals, they can operate under a single GST number. If they are distinct verticals, you may obtain separate registrations for each. However, the same is not mandatory. Hence, you can have one GSTIN for two businesses in the same state.

What is the threshold limit for GST registration in different states?

In most states, service providers need to register for GST if they earn over Rs 20 lakhs, and goods suppliers if they earn over Rs 40 lakhs. But, in northeastern and hilly areas, the threshold limit for GST registration is reduced. You can find the threshold limits for GST registration here.