Most Hyderabad sellers we work with are at the same point in their growth: comfortable inside Telangana, selling well on one or two marketplaces, and starting to wonder whether the next step is a warehouse in Maharashtra, Karnataka or the north.
That decision is usually made on delivery times and rent. It also has a compliance cost, and it is worth knowing what that cost is before you commit, not after the stock has already moved.
This page covers both: running the books properly while you are single-state, and what changes when you are not.
The warehousing serving Hyderabad runs through Medchal, Shamshabad and the Kothur corridor, all inside Telangana. A seller here putting stock into a fulfilment centre normally adds that address to the existing registration as an additional place of business through a REG-14 amendment. No government fee, no second registration, and no invoice needed to move your own goods to it.
The one hard requirement is sequence. Marketplaces will not accept inventory into a warehouse that is not on your GST registration, so the amendment has to be completed before you inbound anything. We handle it through our add place of business service, and the mechanics are set out in adding a fulfilment centre to your GST registration.
Once you hold registrations in two states, those registrations are distinct persons under GST. The changes are these:
| Single state | After a second state | |
|---|---|---|
| GST returns | One set | One set per registration, every month |
| Moving your own stock | Internal transfer, no tax event | Supply under Schedule I, needs a tax invoice and IGST |
| TCS credit | Accepted once | Accepted separately for each GSTIN |
| Reconciliation | One position to close | Every state closed before any return is filed |
| Stock records | One location set | Location-wise, with goods in transit tracked between your own states |
None of it is prohibitive. It is tax neutral when done correctly, because the IGST charged on the transfer becomes credit at the receiving end. What it is not, is free. It adds a monthly filing cycle and a reconciliation discipline, and the businesses that get into trouble are the ones that moved the stock first and discovered the obligations afterwards.
The right way to make the call is to compare the delivery time and rent saving against the added compliance and working capital cost, with real numbers. That is a conversation worth having before the lease is signed.
Professional tax applies. Telangana levies professional tax, so employers here register and file alongside PF, ESI and salary TDS. Sellers who have hired their first packing, photography or support team pick this up, and it is a common gap in files set up when the business was one or two people. The state-wise position is covered in our professional tax guide.
Intra-state e-way bill thresholds are a state matter. Telangana sets its own limit for movement inside the state, which differs from the inter-state figure. Confirm the current notification rather than assuming a short local movement is exempt.
Registration is usually mandatory regardless of turnover. The ₹40 lakh threshold for goods that applies in Telangana is beside the point for most sellers, because Section 24(ix) of the CGST Act requires registration for anyone supplying through an operator that collects tax at source. The narrow exemption under Notification No. 34/2023-Central Tax needs you to make no inter-state supplies at all, sell in one state only, hold a PAN and take an enrolment number first. One order shipped to Karnataka ends it.
Since the July 2025 tax period the outward liability in GSTR-3B is locked to your GSTR-1 and cannot be edited on the portal. Corrections have to run through GSTR-1A before filing, which means the month's reconciliation has to be finished before the return goes in. Our GST return filing works on that sequence.
Both come out of the same payout and neither is an expense.
GST TCS under Section 52, at 0.5 per cent of the net value of your taxable supplies since 10 July 2024. The operator reports it in GSTR-8 by the 10th of the following month. Accept it and it lands in your electronic cash ledger, where it pays output tax.
Income-tax TDS at 0.1 per cent of gross sales since 1 October 2024, under what was Section 194-O and is now Section 393(1), Table Sl. No. 8(v) of the Income-tax Act, 2025. It becomes advance tax against your PAN and should be agreed to your annual tax statement quarterly.
Sellers who have never accepted TCS credit accumulate a balance they have already paid for and never use. It is the single most common piece of recoverable money we find in a first-month review.
Professional fees are quoted excluding GST; government fees are payable at actuals. Pricing follows channels, order and return volume, registrations and inventory complexity rather than turnover.
No. Both are in Telangana, so the warehouse is added to your existing registration as an additional place of business through a REG-14 amendment. It must be done before the marketplace will accept your stock.
When you hold stock there. Selling and delivering into another state is an inter-state supply and does not require registration there. Storing goods in a warehouse in that state does, because that is a place of business.
A separate return cycle for the new registration, TCS credit to be accepted separately, tax invoices and IGST on your own stock transfers, location-wise stock records, and a reconciliation that has to close in both states before either return is filed.
Telangana levies professional tax, so employers register and file alongside PF, ESI and salary TDS. It commonly gets missed by sellers who set up payroll when the business was still very small.
Usually yes, if you act on it. The credit sits against your GSTIN once the operator has filed GSTR-8 and you accept it in the TDS and TCS credit received statement. Older periods are subject to the portal's three-year restriction on filing, enforced from October 2025, so this is worth checking sooner rather than later.
Yes. The compliance position is the same across Telangana. What differs between files is the number of channels, the return rate and whether stock has crossed a state border.
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Reviewed by the CA and CS Team, CorporateWalla · Last updated 28 August 2026 · · Sources: GST portal, Income Tax Department, CBIC
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