Place of Business under GST

 In this article we will discuss the Place of Business AND different between the Place of Business & Additional Place of Business.

 

What is the Place of Business:-

Place of Business:- As per Section 2(85) of CGST Act, 2017 “Place of Business” Includes,

i)                    A place from where the business is ordinarily carried on, and includes a warehouse, a godown or any other place where a taxable person stores his goods, supplies or receives goods or services or both OR

ii)                   A place where a taxable person maintains his books of account OR

iii)                 A place where a taxable person is engaged in business through an agent, by whatever name called.

 From the above definition it is clear that definition given in the law is inclusive definition and hence any place from where a person carry out his or her business or operate business related activities shall be the place of Business.

Now the Word “Business” comes in to the picture and play important role to decide the place of business, hence we need to know the definition of Business.

 

What is Business:-

Business:- As per Section 2(17) of CGST Act, 2017 “Business” Includes,

i)                    Any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit.

ii)                   Any activity or transaction in connection with or incidental or ancillary to sub-clause (i).

iii)                 Any activity or transaction in the nature of sub-clause (i), whether or not there is volume, frequency, continuity or regularity of such transaction.

iv)                 Supply or acquisition of goods including capital goods and services in connection with commencement or closure of business.

v)                  Provision by a club, association, society, or any such body (for a subscription or any other consideration) of the facilities or benefits to its members.

vi)                 Admission, for a consideration, of persons to any premises.

vii)               Services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation.

viii)              Activities of a race club including by way of totalisator or a license to book maker or activities of a licensed book maker in such club.

ix)                 Any activity or transaction undertaken by the Central Government, a State Government or any local authority in which they are engaged as public authorities.

 

Definition of Business also inclusive and hence anything we are doing whether for pecuniary or not call as business.

 

What is Principal Place of Business:-

Principal Place of Business:- As per Section 2(89) of CGST Act, 2017 “Principal Place of Business” means the place of business specified as the principal place of business in the certificate of registration.

 

Different between Principal Place of Business and Additional Place of Business:-

Principal Place of Business:- As per GST authorities in India, Principal Place of Business is the primary location within the State where a taxpayer's business is performed. The principal place of business is generally the address where the business's books of accounts and records are kept and is often where the head of the firm or at least top management is located.

 Additional Place of Business:- Additional Place of business is the place of business where taxpayer carries out business related activities within the State, in addition to the Principal Place of Business.

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