GST Multi-State Registration: When It Is Required, the New Multistate Registration Facility and Compliances

1. The Basic Rule: GST Registration Is State-wise
   • GST has no single all-India registration. A business needs a separate registration (GSTIN) in each State or Union Territory from where it makes taxable supplies (sections 22 and 25 of the CGST Act, 2017).
   • All GSTINs are issued against the same PAN, but each registration is treated as a “distinct person” under section 25(4). Each GSTIN files its own returns, pays its own tax and keeps its own input tax credit.
   • Registration must be applied for within 30 days from the date the business becomes liable to register in that State.
2. When Do You Need Registration in Another State?
   • Place of business in that State: If you have a branch, office, factory, shop, warehouse or godown in another State and supply goods or services from there, you need a GSTIN in that State. This includes stock kept in a third-party or e-commerce operator’s warehouse in that State.
   • Turnover threshold is counted on an all-India basis: The threshold (generally ₹40 lakh for goods and ₹20 lakh for services, with lower limits in certain special category States) is tested on the aggregate turnover of all your registrations under the same PAN. Once crossed, you must register in every State from where you make supplies.
   • Compulsory registration, whatever the turnover: Inter-State supply of goods, casual taxable persons, persons liable under reverse charge, and suppliers through e-commerce operators (with certain exceptions) must register regardless of turnover.
   • Inter-State supply of services: Service providers making inter-State supplies are exempt from compulsory registration until their aggregate turnover crosses the threshold.
   • A customer in another State alone does not require registration there. If you supply from your home State to a customer in another State, you charge IGST from your home-State GSTIN. Registration in the customer’s State is needed only if you supply from a place of business in that State.
   • Temporary business in another State (exhibitions, trade fairs, events, seasonal sales): register as a casual taxable person at least 5 days before starting. You must deposit tax in advance, equal to the estimated tax liability. The registration is valid for up to 90 days and can be extended once by another 90 days.
   • More than one registration in the same State: Allowed for separate places of business in that State. An SEZ unit or developer needs a separate registration from the rest of the business in that State.
3. New “Multistate Registration” Facility on the GST Portal (from 1 October 2026)
   • GSTN has introduced a “Multistate Registration” option on the GST portal home page (advisory dated 1 October 2026). A business with one PAN can apply for registration in several States/UTs in a single flow.
   • How it works:
     • Select the States/UTs, and enter the legal name, PAN, email and mobile number once (verified by OTP). A single Master TRN is generated.
     • Common details (business details, promoters/partners, authorised signatory, authorised representative, goods and services) are filled once and carried into each State application, where they can be edited.
     • On submission, a separate TRN for each State/UT is generated. Each State application is then completed with State-specific details such as the principal and additional places of business in that State, supporting documents, and Aadhaar authentication.
   • Limits:
     • Available only for normal taxpayers for now. Casual taxable persons, non-resident taxable persons, TDS/TCS registrants and others must use the regular route.
     • Only one registration per State/UT under one Master TRN.
     • The Master TRN must be submitted within 15 days.
   • What does not change: This is a procedural convenience, not a single registration. Each State application is still examined separately by that State’s officer. One State may approve while another raises a query (REG-03) or rejects (REG-05), and each State issues its own GSTIN. The regular “Register” option remains available for adding a single State.
4. Simplified and Faster Registration Options
   • Rule 14A – automatic registration (from 1 November 2025): Applicants whose output tax on supplies to registered persons will not exceed ₹2.5 lakh per month can opt for automatic registration, generally granted within 3 working days after Aadhaar authentication. The limit applies State-wise, so a multi-State business can opt for it separately in each State if eligible. Only one registration per State under the same PAN can be under this scheme. A business that crosses the limit must exit through the prescribed procedure.
   • Rule 14B – small e-commerce sellers: The 57th GST Council (8 October 2026) recommended a simple registration mechanism for small suppliers selling goods through e-commerce operators in States where they have no physical presence, and passing on ITC of not more than ₹2.5 lakh per month. They can declare the e-commerce operator’s warehouse in that State as their principal place of business, and registration is granted automatically, subject to conditions. Check the notification before applying under this rule.
   • Amendments and cancellation: The 57th Council also recommended automatic acceptance of most registration amendments (other than principal place of business) and automatic acceptance of cancellation applications once returns are filed and dues paid. These will ease managing several GSTINs once notified.
5. Documents Required for Each State
   • PAN of the business, and proof of constitution (partnership deed, certificate of incorporation, LLP agreement, etc.).
   • Aadhaar, PAN and photographs of promoters/partners/directors and the authorised signatory.
   • Proof of the place of business in that State: ownership document, or rent/lease agreement or consent letter from the owner, along with a recent electricity bill or property tax receipt. This is the document that most often causes queries, so make sure the address matches exactly.
   • Bank account details, and letter of authorisation or board resolution for the authorised signatory.
   • Aadhaar authentication of the authorised signatory and promoters. Biometric authentication at a GST Suvidha Kendra may be required in some cases.
6. Compliance After Registering in Multiple States
   • Separate compliance for every GSTIN: GSTR-1, GSTR-3B, annual return and reconciliation, invoice series, e-way bills and assessments are all handled separately for each State registration.
   • E-invoicing applicability is based on the aggregate turnover of the PAN, not of each State. If the PAN crosses the limit, every GSTIN must issue e-invoices.
   • Stock transfers between States are taxable: Goods sent from one GSTIN to another (even without consideration) are a supply between distinct persons and attract GST, with a tax invoice and e-way bill. Under rule 28, where the receiving branch is eligible for full ITC, the value declared in the invoice is accepted as the open market value.
   • Services between branches (cross charge): Services provided by one registration to another, such as head office functions, are also supplies between distinct persons. As per Circular No. 199/11/2023-GST, where the recipient branch is eligible for full ITC, the value declared in the invoice is treated as the open market value, and the value may be treated as nil where no invoice is issued for such services.
   • Input Service Distributor (ISD) is mandatory from 1 April 2025: Where common input services from third parties (audit fees, software, advertisement, consultancy, etc.) are billed to one office but used by branches in other States, the ITC must be distributed through a separate ISD registration. ISD files GSTR-6 monthly.
   • ITC belongs to the GSTIN on the invoice: Ask vendors to bill the correct State GSTIN. ITC cannot be shifted from one GSTIN to another except through a supply invoice or ISD.
   • Exports and refunds: LUT for exports without payment of tax and refund claims are filed separately for each GSTIN.
   • Closing a branch: Apply for cancellation of that State’s registration (REG-16) and file the final return, rather than leaving the GSTIN inactive. Non-filing can lead to suo moto cancellation and notices.
7. Common Mistakes to Avoid
   • Supplying goods from a warehouse or branch in a State where the business is not registered.
   • Showing goods dispatched from another State’s warehouse under the home-State GSTIN.
   • Not charging GST on inter-State stock transfers, or moving goods between branches without an invoice and e-way bill.
   • Vendor invoices raised on the wrong GSTIN, leading to loss of ITC.
   • Not taking ISD registration for common input services after 1 April 2025.
   • Assuming the new Multistate Registration facility gives one GSTIN for all States. It does not.

What This Means for Businesses

• List every location from where you supply goods or services, including third-party and e-commerce warehouses, and confirm you have a GSTIN in each of those States.
• Expanding to several States at once? Use the new Multistate Registration facility to save time, but prepare State-wise address proofs and keep track of each State application separately.
• Small B2B or B2C businesses may qualify for automatic registration under rule 14A in each State.
• Set up proper processes for stock transfer invoicing, cross charge and ISD, as these are common areas of GST notices for multi-State businesses.

Note: This article is based on the CGST Act, 2017, the CGST Rules, 2017, Circular No. 199/11/2023-GST, the GSTN advisory dated 1 October 2026 on the Multistate Registration facility, and the recommendations of the 57th GST Council meeting (8 October 2026), which take effect only when notified. It is for general information only; please consult us for advice on your specific facts.