## Section 25(2) read with Rule 11 — State-wise Registration

### A. One Registration per State (default)

GST registration is State-wise, not centralized.
Business with branches in multiple States → separate registration in each State.
Within a single State → one registration with one Principal Place of Business (PPoB) and other branches treated as Additional Places of Business (APoB).

### B. Separate Registration for Multiple Places of Business in Same State/UT

Taxpayer may opt for separate registrations based on business needs.
Apply in Form GST REG-01 for each place of business.
Tax must be paid on supplies between such separately registered places of business.
A tax invoice / bill of supply must be issued for inter-branch supplies.
Rules 9 and 10 (verification & grant of registration) apply mutatis mutandis.

### C. Composition Levy Interaction

If a person pays tax under the normal scheme for one separately registered place → cannot opt for composition levy for another place.
If any one separately registered place becomes ineligible for composition levy → all other places also become ineligible.

Worked example

### Example 1

Example: XYZ Ltd. has a head office in Bengaluru and a factory in Mysuru. By default, only one registration in Karnataka with Bengaluru as PPoB and Mysuru as APoB. XYZ may optionally take separate registrations — but then tax becomes payable on stock transfers between them.

### Example 2

Example (Composition): ABC has 3 separately registered units in Maharashtra. Unit 1 pays under composition. Unit 2 starts inter-State outward supply → becomes ineligible. Consequence: Units 1 and 3 also lose composition eligibility.

⚠️ Common exam mistakes

Assuming separate registrations in the same State allow tax-free stock transfers — they don't; tax must be paid.
Believing one branch can opt for composition while another runs under the normal scheme — not permitted in the same State.
Treating mandatory separate registration where it is only optional (it is the taxpayer's choice).

Bare-Act text Section 25(2) of CGST Act, 2017 read with Rule 11 of CGST Rules, 2017 · CGST Act, 2017 / CGST Rules, 2017 · click to expand

Section 25(2): A person seeking registration under this Act shall be granted a single registration in a State or Union territory. Provided that a person having multiple places of business in a State or Union territory may be granted a separate registration for each such place of business, subject to such conditions as may be prescribed.

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Section 25(2) — State-wise Registration & Separate Registration for Multiple Places of Business

Worked example

⚠️ Common exam mistakes