You may not know everything about GST which by itself is a complex subject. You may at times need to register across multiple states, and at other times the compliance burden may not be too much, mainly if your operations are limited to only one state. Whatever the need is, more input tax credit is what you intend to get. Majority of businesses have their base in one state, but their operations are widespread, often across multiple states. The GST requirement and scenario is hugely different in such situations which is why you need to consult reliable GST consulting services in India to avoid any legal hassles in running your business.
New set of facts
As a business owner, you will need to tackle a complete set of unique circumstances. You may be assessed in several states and may also need to obtain GST registration for operating in new states. It is natural that you will not be familiar with the requirements, which is why you need to consult GST service providers in Delhi NCR if you operate in Delhi and others if you operate in several states. However, when it comes to GST registration in different states, there is a lot of confusion. On the other hand, if you operate in a particular state, it is not required at all to register in that state.
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Location of office
Only when you operate in a particular state, you have to register in the state which is your place of office or business. Any GST consulting services in India will be able to explain the provision of service in a better way. Service provision and operation in a state typically depends on whether or not you need to set up your office in that state. This means, if your company is based in Bangalore and you sell your product or services in Delhi or Mumbai, you may need to set up an office in the state of your operation at some point of time during your evolutionary procedure.
Need for multiple registrations
Setting up an office in all your states of operations will make a lot of sense as you will have a person manning your office and activity in that city without you having to visit there frequently. However, when you have such kind of a setup, you may need to obtain multiple registrations and consult the GST consulting firms in India for the procedures and other formalities. They will help you to do the compliance of such registrations and organize the invoicing according to that law of the state. This will make the input tax credit more state-centric. For this reason, it is considered a mixed bag for multiple state service providers.
The changing scenario
To keep up and cope with the changing scenario of GST requirements, you will need to hire the services of GST consultants in India. This was not necessary before as in the past a single registration in the state of your headquarters was enough for you to operate in 20 states. The theory then was, as long as you pay the right amount of tax, it does not matter, but now you need to break down the tax according to the rule of the relevant states and pay the relevant states their due taxes.
Seema Mehra is a Chartered Accountant at Ashok Maheshwary & Associates, is one of the top ca firms in gurgaon that provides best statutory audit in India a convenient manner. She is a professional writer and loves to share Financial related topics.