VPOB (Virtual Place of Business): Use Cases, Benefits, Registration Process, and Requirements | How to Apply in/for Jharkhand 2025
VPOB (Virtual Place of Business) is a facility for obtaining a GST license for a particular state in India without actually needing to invest or purchase a property there. How does this work? To understand the need for VPOB, you have to understand a basic principle of Goods & Services Tax (GST) in India.
Let's take an example: Suppose Mr. Saurabh owns ABC Ltd, a company based in Maharashtra. He wants to sell the products in Jharkhand, too. Before he starts selling the product in Jharkhand, he'll have to go through some legal process. As per GST rules, the company must be registered in Jharkhand if the owner wants to sell it in that location. Since Mr. Saurabh doesn't own a physical space in Jharkhand, he cannot sell his product there.
This is where a VPOB comes in — it provides a legally valid address that ABC Ltd can use for GST registration in Jharkhand, without owning or leasing a commercial property there.
Now, the question arises: If GST is a unified tax, why can't businesses use a single GST registration for all of India?
In this post, we'll explore some complex parts of doing business in India and learn how these processes can be easily outsourced to save you precious time and money so that your focus stays on business growth.
Why Can't Businesses Use A Single GST Registration For All Of India?
GST is a destination-based, dual tax system—both the Central and State governments levy GST. So, to supply goods in a different state, a business must be registered in that specific state to comply with the state-level tax collection. What does "destination-based, dual tax system" mean?
GST is charged in the state where the goods or services are consumed, not where they are produced or sold. For Example, if a seller in Delhi ships a product to a customer in Jharkhand, Jharkhand is considered the destination. Under the dual tax system in GST, both the Central Government and the State Government share tax collection, which means that every taxable transaction is subject to two components of tax:
- CGST – Central Goods and Services Tax
- SGST – State Goods and Services Tax
- (Or IGST – Integrated GST, in case of interstate transactions).
1. Intra-State Supply (within the same state)
When a sale happens within the same state, GST is split equally between the Centre and the State.
- CGST goes to the Central Government
- SGST goes to the State Government
- A business in Gujarat sells a product to a customer in Gujarat worth ₹1,000.
- Applicable GST = 18%
- → 9% CGST + 9% SGST
- → ₹90 to Centre (CGST) + ₹90 to State (SGST)
2. Inter-State Supply (between different states)
- When a sale happens from one state to another, IGST (Integrated GST) is charged instead of CGST + SGST.
- The Central Government collects IGST.
- Later, the Centre transfers the appropriate share of tax revenue to the destination state (where the goods/services are consumed)
- A business in Maharashtra sells to a customer in Karnataka worth ₹1,000.
- Applicable GST = 18%
- → 18% IGST = ₹180
- → The Centre collects the entire ₹180
- → Centre keeps the CGST portion and transfers the SGST portion to Karnataka
Why this dual system?
- Ensures fair revenue sharing between the Centre and the States
- Maintains federal balance while simplifying the tax system
- Helps states get their rightful share of tax on consumption within their territory
Why don't sellers always need GST registration in every state to sell their products on Amazon or Flipkart?
Under the GST law in India, whether a business needs a state-specific GST registration depends on how and from where the goods are being supplied. There are two aspects of this condition:-
1. Location of Supply
If a seller stores or dispatches goods from a particular state, that state becomes the place of supply, and the seller must be registered in that state to collect and pay the applicable GST (CGST + SGST).
This applies when sellers use warehouses or fulfillment centers located in multiple states.
Example:- Seller: ABC LTD., based in Maharashtra
- Business Operation: ABC LTD. decides to store some of its products in a warehouse in Bengaluru to serve customers in South India more efficiently.
- GST Registration Requirement: Since XYZ Electronics is storing products in Bengaluru, it must register for GST in Karnataka because the warehouse in Karnataka is now the place of supply for goods sold to customers in that region. The seller will have to collect SGST for sales within Karnataka and CGST for sales within the state, in addition to IGST if selling to customers in other states.
2. Direct Interstate Supply from a Registered Location
If a seller is registered in only one state and ships goods directly from that location to customers across India, they can do so under IGST without needing GST registration in each destination state. This is allowed as long as they do not store or operate from other states.
- Seller: ABC LTD., based in Maharashtra
- Business Operation: ABC LTD. sells clothing online through marketplaces like Amazon and Flipkart. The business is registered for GST in Maharashtra and ships all its products directly from its warehouse in Mumbai to customers across India.
- GST Registration Requirement: Since ABC Clothing ships directly from Maharashtra to customers in various states, it only needs one GST registration in Maharashtra. The company can use IGST for interstate sales (e.g., shipping to customers in Delhi, Tamil Nadu, Jharkhand, etc.) and does not need to register for GST in other states because it doesn't have a physical presence (like a warehouse or office) there.
When is State-Wise GST Registration Required?
According to the Goods and Services Tax (GST) regime in India, if you are shipping your product from Jharkhand, you must obtain GST for Jharkhand; if you are shipping from Punjab, you must register for GST of Punjab. This is because GST is both destination-based and dual in nature, meaning that each state has the right to collect tax on consumption occurring within its jurisdiction.
You must register for GST in a particular state if any of the following conditions apply:
➤ You Have a Physical Presence or Office in That StateNote: In such cases, a casual taxable person (CTP) registration is applicable, which is valid for up to 90 days and can be extended.
When is State Registration Not Required?
- You are shipping goods from a registered location in one state directly to customers in another state (i.e., interstate supply via IGST).
- You have no physical or virtual presence, no inventory, and no operations in the destination state.
- You sell services across India from one registered location, and the nature of the service doesn’t require fixed installation or presence elsewhere.
| Condition | GST Registration Required in that State? |
|---|---|
| Physical office/branch | ✅ Yes |
| Inventory stored (warehouse/FC) | ✅ Yes |
| Employees or fixed team deployed | ✅ Yes |
| Online sales with direct interstate shipping | ❌ No (if shipping from registered state only) |
| Short-term activity (fairs/projects) | ✅ Yes (via CTP registration) |
What is a Virtual Place of Business (VPOB)? With Use Cases
- A physical address (often from a service provider)
- Required documentation (like a rent agreement and NOC)
- Supporting utilities (e.g., electricity bill)
- Sometimes even mail handling or inspection support
- While it is not a working office, a VPOB is legally sufficient for GST registration, and is treated as the taxpayer's official place of business for that state.
Benefits of Using a VPOB
- Cost-effective: Avoids the expense of leasing/buying physical property
- Legally compliant: Provides required documents for GST registration
- Scalable: Easily expand to multiple states without major investments
- Time-saving: Faster GST registration without physical setup delays
- Access to additional business services (some VPOB providers offer mail handling, audit support, etc.)
How to Apply for VPOB in Jharkhand
Step 1: Choose a Reliable VPOB Provider
- A valid commercial address in Jharkhand
- Legally acceptable documentation for GST registration
- Post-registration support (in case of queries or inspection)
Step 2: Required Documents for VPOB in Jharkhand
Once you apply for a VPOB through ScaleNest, you will be provided the following documents that are legally required by the GST department:
- Rent/Lease Agreement – A registered agreement between the VPOB provider and your business
- NOC (No Objection Certificate) – From the property owner, allowing your business to use the address
- Utility Bill – Electricity or water bill of the VPOB address (issued within last 3 months)
You’ll also need to prepare your own business documents:
| Nature of Document | Proprietorship | Partnership / HUF | Private/Public Limited |
|---|---|---|---|
| PAN (Colour) - E-PAN Preferred | Yes | Yes (All Partner/Karta) | Yes (All Director) |
| Aadhar Card - E-Aadhar Card Preferred | Yes | Yes (All Partner/Karta) | Yes (All Director) |
| Aadhar Linked Mobile Number & Mail ID | Yes | Yes (All Partner/Karta) | Yes (All Director) |
| Passport Size Photograph | Yes | Yes (All Partner/Karta) | Yes (All Director) |
| Cancelled Cheque of Current Account | Yes | Yes | Yes |
| Board Resolution / Authorized Signatory Letter | No | Yes | Yes |
| Home State GST Certificate | Yes | Yes | Yes |
| HSN Code (Upto 5) | Yes | Yes | Yes |
| E-Commerce Sales Invoice | Yes | Yes | Yes |
| Ecommerce Product Link | Yes | Yes | Yes |
| Company PAN (Colour) | No | Yes | Yes |
| Incorporation Certificate | No | Only for LLP | Yes |
| Partnership Deed | No | Yes | No |
Do you want to expand your business to Jharkhand without the hassle of setting up a physical office? Get your GST registration using a verified Virtual Place of Business (VPOB).
ScaleNest — a trusted provider for startups, e-commerce sellers, and MSMEs across India. Our team handles the paperwork, address, and compliance so you can focus on growing your business.
ScaleNest
- Pre-verified commercial addresses in Jharkhand
- Fast processing and document delivery
- Compliant with GST department norms
- Inspection-ready addresses and property owner coordination
- Suitable for Amazon, Flipkart, Blinkit and other marketplace sellers
Frequently Asked Questions:-
1. What is a Virtual Place of Business (VPOB)?
A Virtual Place of Business (VPOB) is a legally recognized address used by businesses to obtain GST registration in a state without owning or leasing a physical office or warehouse there. It enables businesses to legally operate in that state for GST purposes.
2. Why is VPOB needed for GST registration in another state?
Under GST rules, a business must be registered in a state to sell goods or services from there. If you don't have a physical presence, VPOB helps you meet this requirement legally and cost-effectively.
3. Can I use a single GST registration to sell across all Indian states?
No, because GST in India is a destination-based, dual tax system. If you store or supply goods from multiple states, you must register for GST in each of those states individually.
4. When is it mandatory to register for GST in another state?
You need state-specific GST registration if:* You have a physical office or warehouse in that state* You store inventory in a fulfillment center* You employ staff or deploy a team in that state* You participate in trade fairs or short-term business activities
5. When is it NOT necessary to register for GST in another state?
If you ship directly from your registered state to customers in other states (via IGST) and have no physical presence or operations in those states, you do not need separate GST registration.
6. What documents are required to get a VPOB-based GST registration?
To get GST registered using a VPOB, you'll need:* Rent/Lease Agreement* NOC (No Objection Certificate)* Recent Utility Bill (electricity or water)* Plus standard business documents such as PAN, Aadhaar, canceled cheque, and ecommerce links or invoices.
7. Is a VPOB legal and accepted by the GST Department?
Yes. VPOBs are 100% legal and accepted, provided they come with proper documentation like rent agreement, NOC, and utility bill. Many businesses use VPOBs to expand without physical offices.
8. What is a casual taxable person (CTP) under GST?
A CTP is a person or business who occasionally supplies goods or services in a state where they don’t have a fixed place of business. They must register for GST as a CTP, valid for 90 days (extendable).
9. Can I use a VPOB for selling on marketplaces like Amazon, Flipkart, or Blinkit?
Yes. Many e-commerce sellers use VPOBs to register in multiple states where marketplaces have warehouses. This allows sellers to store products locally and comply with GST norms.
10. Who is a trusted VPOB provider for Jharkhand?
ScaleNest is a trusted provider offering verified addresses, documentation, inspection support, and GST compliance for Jharkhand and other Indian states. Ideal for startups, MSMEs, and e-commerce sellers.