Any business owner that trades in goods and services within the territories of India has to obtain a GST Registration, if they fulfill the eligibility criteria. This is core to the taxation compliance requirements for Indian businesses. Many times, when a person owns an office in more than one state, they will have to obtain multiple GSTINs. The management of multiple gst profiles is not easy and adds on a lot of burden on business owners. So, we’re here to help you manage multiple gst profiles using a single software. This will give you more free time to focus on business scalability. But, how, you wonder? Let’s start with understanding multiple GST profiles and their challenges.
Understanding multiple GST profiles
Many business owners need to get separate GST registrations for their business. In that case, a separate GSTIN is issued for each registration. The GSTIN is a unique identification number, which helps the tax authorities keep a track of the GST registered users. The following are different instances under which you may need multiple GST profiles:
For separate legal entities
If you have two companies, registered as completely different businesses, you’ll need a separate GST registration profile for each. This rule is applicable even if both such businesses are functioning within the same office space.
For various business verticals
Many times, a business owner will run three or four different verticals or brands within the same legal entity. However, as soon as there is a diversion in business activity in the verticals, it will require a separate GSTIN.
Multi state operations
This is the most commonly applicable scenario. When a business owner has operations of the same business in different states, they will have to obtain multiple different GST registrations for each operational state.
Complex issues in managing multiple GST profiles
| Area of Business | Problem Caused |
| Accounting and Bookkeeping | For each GSTIN, you will have to maintain a different set of financial records, and invoices, bank accounts, etc. This can turn out to be a hassle for you. |
| Filing GST Returns | To stay compliant, it’s necessary that you file your returns in a timely manner, without any errors. When you have multiple GST profiles, it becomes difficult to manage these deadlines. A simple mistake in filing can lead to hefty penalties. |
| Managing Inventory | When you have offices at different locations, you’ll have to keep a closer track on the inventory. Besides, there are separate regulations on interstate movement of goods, which you’ll have to adhere to. |
| Compliance with the Law | Keeping up to date compliance records can be difficult when you have multiple GST profiles. The reason being, for each GSTN, you may have to adhere to different rules, based on the State and other details. |
Thus, multiple GST registrations can come with multiple problems. But, there are certain ways through which you can easily manage multiple GST registrations.
Also Read: Multiple GST Registrations At The Same Address: Conditions And Case Law
Ways to manage multiple GSTINs
Software solution
A single software that can manage multiple GST profiles will easily streamline your entire accounting and billing workflow. So, you can easily keep a track of all different profiles.
Consulting with a professional
Experts always know what to do, so, before taking any hasty steps or choices, you should always consult with a CA or GST professional. They can warn you about the legal procedures and help you move through the difficulties and streamline your GST filing for multiple registrations.
Internal operating procedure
When you have set a clear process for managing and processing the finances in all different GST profiles, it is easy to avoid mistakes. This also helps in keeping a historical report for all GSTINs.
Benefits of using single software for multiple GST profiles
In this blog, we are focusing on one of the most easy ways to manage GST profiles efficiently. Which is, by using a single software solution. Here are the benefits of using single software for multiple GST registrations:
Ease of Compliance
Compliance with the GST regulations involve a lot of steps such as filing of returns, keeping proper records of invoices, error-free tax calculations, applying GST rates accurately, etc. This becomes problematic for even a single GSTIN holder. So, we can only imagine what users with multiple registrations have to go through. Thus, using a single software can easily help you streamline all your profiles. So, you can easily manage all accounts without spending hours searching the database.
Here are some of the essential features of software solution that helps in maintaining compliance:
Automation and reminders
Software solutions for multiple GST profiles will automate your processes like handling registrations for new locations, managing invoices, and processing inventory management. Moreover, it sends out reminders for all different due dates, and handles return filing. Hence, streamlining everything with ease.
Management of Invoices
Different GST profiles will require different invoices and details in accordance with the laws applicable for each GSTIN. Generating, processing and storing these invoices manually can lead to a lot of errors. Hence, with the software solution, you can manage all invoices in one place.
Tax Calculation
The software not only automates invoices, it also does the tax calculations for all the multiple profiles. Besides, it also allows you to easily track the different claims with the GST department for ITC, etc.
Also Read: How To Use CaptainBiz To Manage Multi-State GST Compliance
Error Reduction in Data Management
If you are managing all your GST profiles manually, you will need an entire team to look after these different accounts. Even with that hold over the resources, human errors are so susceptible. A tiny error in the calculations of tax, or invoicing or any other details, can lead to GST notices, penalties and even litigation. However, when you use a single software to manage the software solution, all you have to worry about is feeding the data accurately once. After that, the software takes care of all automations, processing, and record keeping. So, it eliminates all risks of human errors. For example, it can improve the accuracy in calculating the ITC in cross charging and ISD, etc. Moreover, it can also create a uniformity in the data entry process of multiple profiles.
How to Set-up multiple GST profiles in one software?
The table below discloses a step by step guide on how you can set up multiple GST profiles in one software.
| Step | Details |
| Selection of Software | The first thing you need to do is choose the GST compliance software of your choice. You need to take this decision very wisely as the software you choose will also get access to your data. |
| Account Setup | Once you select the software, you need to sign up, and create your company profile. Then, look for options in settings to add a new company or business details. Fill in the requisite details and GSTIN. Follow this step for all different registrations. |
| Customisation of Profiles | To make tracking of information easier, you can also customize the different profiles. |
| Integration and management | This can be an ongoing help. As and when you scale your business, you can integrate the tools and increase efficiency. After that, managing the entire GST process can be done smoothly. |
Technical Features of Software Solution for Multiple GST Registrations
Now that we know so much about how a single software can easily manage all your GST profiles, at once. Let’s take a closer look at the technical features of the software that help the software reach there:
| Technical Feature | Details |
| Integration and Automation | Automation can take care of registration, filing, reminders, and calculations. All of this is done without any human intervention. So, it saves your employees a lot of time from manual data entry and invoicing related admin tasks. Moreover, the capability of integration of a GST software with other tools like your ERP solution, or CRM software, can help you streamline the whole business operations. For example, if you integrate multiple GST profiles with your accounting software, it can easily access and transfer accurate data, eliminating your need to do so. |
| Advanced Reporting | Data reports can help you in valuation, raising funds and overall creditworthiness. With multiple GST accounts, it is very difficult to manage all these documents. So, software solutions provide you a consolidated reporting feature through which you can get accurate historical data for either a single profile, or even of multiple profiles at once. If you consider business growth, this feature is very essential. Especially since it makes financial analysis much easier. The reports generated from the software give you on point information, eliminating the need of searching through paperwork for hours. |
Comparing Different Software Options
There are many different software options available. However, you need to choose what works best for you. Look at this comparative study to get a better idea at the different selling points.
| Software Type | Features | Limitations | Price Range |
| Desktop Application | Comes with a large user base;
Has many features for accounting management; and Reports can be easily customized. |
It can be complex to use for beginners. | Completely varies on different versions and features. |
| Cloud Based Accounting | Is very user-friendly;
Offers easy integration; and Provides quite affordable plans. |
Customisation is limited; and
Not ideal for a complex business structure. |
Usually plans start from Rs. 1000/- per month. |
| Freemium Software | Instinctive and easy to use;
Provides GST compliance and easy filing of returns; and Offers a free plan for basic needs. |
Limited access to features;
Not much suitable for large enterprises or corporations. |
Access to free plans is available. Paid plans depend on the features you look for. |
| Desktop ERP | Offers many different features and strong inventory management;
Provides multi-linguistic support; and Can also assist with E-way bill generation. |
Is a bit difficult to learn the use of software as compared to other types. | Pricing varies completely on features and modules available. |
Also Read: How to Choose the Right GST Billing Software for Your Business
Insights on using a single software for multiple GST profiles
Below are some tips and insights from industry experts on using a software for multiple GST profiles:
- Save your time and energy by automating all processes;
- Reduce errors and increase your brand value with accurate reports;
- Streamline compliance and always be on time with your filings;
- Before finalizing any software solution, do some market research;
- Train your staff before actually moving onto it, so they can use the software efficiently; and
- Always take up the free trial or demo before purchasing the software. This gives you and the team a chance to see if it works for you or not. You can take the free trial run for CaptainBiz software right here.
Conclusion
With the rapid speed at which the economy is growing, you’ll have to match step by step, or fall behind. The choice is yours. Running a business is not just about handling the admin work, it means you also have to focus on growth strategies. However, to do so, you need to free yourself of the menial worries. By updating to a GST software solution, you can free up a lot of your time to analyze your finances and plan the upcoming budgets accordingly.
FAQs
-
Is it mandatory to have multiple GSTINs for a single business?
Yes, in some cases, like when you have operations at multiple locations in different states.
-
How does GST software work for multiple GSTINs?
It’s easy. All you need to do is create separate profiles based on your GSTINs and then feed the data accordingly.
-
Can two businesses have the same GST?
Yes, if they are under the legal entity and are located and operational in the state.
