How To Change Principal Place of Business in GST?

The GST, or Goods and Services Tax, which has been effective since 2017, subsumes all previous indirect taxes levied by the government. During the GST registration process, an individual needs to fill in his principal place of business. It refers to the primary location of the business activities.

It is also often the location where the business's accounting register is kept. Changing the primary place of business requires following a simple process.

In this blog, we will discuss how to change the principal place of business in GST, the legal provisions governing the same and other important details.

Procedure for Changing Principal Place of Business in GST

Given below are a few simple steps you need to follow to change the principal place of your business under GST :

Step 1: Understand the Requirement

Before starting with the process, you must have a clear reason to change your principal place of business. Whether it is due to migration or expansion of business, you must possess all the proper documents necessary for this process.

Step 2: Go to the GST Portal

Go to the official GST website and sign in to your account using your login credentials. Make sure that you are authorised to change the business details after having filled the GST REG-01 form.

Step 3: Navigate to the ‘Services’ Tab

After logging in, find the ‘Services’ tab on the GST portal dashboard. Under this tab, you will find many types of services such as payments, returns, registration, and so on.

Step 4: Select ‘Amendment of Registration’

Among the many services offered under the 'Services' tab, you will find an option 'Amendment of Registration'. This option lets you make changes in future in the registration details provided. Select the option for a separate GST registration for a separate state-wise registration of the principal location.

Step 5: Choose ‘Principal Place of Business’

The registration amendment application redirects you to a list of options. Here, select the 'Principal Place of Business' from the list. It will allow you to change the place of business you had filled in earlier.

Step 6: Provide Details of New Principal Place of Business

Fill in the information about the new principal place. The details would include information such as the complete address, and contact details. If the portal asks for any other information, you need to fill that in too.

Step 7: Upload Supporting Documents

To authenticate the change of principal place of business, you must upload some supporting documents. For instance, you can upload lease agreements, utility bills, or any other form of address verification that the GST authorities accept.

Step 8: Verify Details and Submit Registration Application

Review the details to avoid any inaccuracy of information. After the verification, you can submit the registration application for changing your principal place of business. 

Step 9: Await Approval

After the successful submission of the application, you have to wait for verification by the GST authorities. The Goods and Service Tax authorities might also ask for more information to authenticate your demand before approving your application.

Step 10: Receive Confirmation

Upon completion of verification by authorities, you will receive a confirmation message either via SMS or mail. This would indicate that your principal place of business has been changed.

Step 11: Update Business Records

Now you can change the business address in your business registration documents as well as update any official documents, communication materials, etc. There should be no discrepancy between the business records and the GST records.

Step 12: Comply with Tax Obligations

There should be proper compliance with tax regulations concerned with change of principal place of business. This implies that you need to update tax invoices, file returns timely and maintain proper audits.

Step 13: Monitor for Any Issues

You must monitor your GST registration regularly. The alteration of the principal place of business must not result in any discrepancy of information. If an issue arises, immediately take it up with the GST authorities.

Step 14: Seek Professional Assistance if Needed

In case there are registration difficulties, get in touch with a GST consultant. They can help you overcome the issue, guiding you towards a smooth completion of the process.

Step 15: Stay Informed about Regulatory Changes

It is important to remain updated with GST regulations constantly. This negates the chances of paying penalties for not abiding by the tax regulations.

Importance of Principal Place of Business In GST

The principal place of business in GST is important for several reasons:

• The principal place of business determines the jurisdiction for GST registration, additional place address, nature of assets, possession of premises etc.
• Under the GST regime, there are tax liabilities for certain places. The principal place of business determines these liabilities along with certain special benefits.
• For communication with tax authorities, the principal place of business is the primary address.
• It also influences the eligibility to claim an input tax credit (ITC) on capital goods, inputs and services.

Legal Provisions Governing Change in Principal Place of Business

The governance of the provisions associated with a change in the principal place of business lies under the CGST (Central Goods and Services Tax) Act, 2017 and the SGST (State Goods and Services Tax) Act respectively. In addition to this, you can file GST FORM REG-14 for change in the principal place or any other area of business.

Conclusion

The principal place of business is a crucial legal aspect of a business. Therefore, having a proper understanding of how to change the principal place of business in GST, its implications and timely registration guarantees to smoothen the process of changing business process.

It also helps in maintaining compliance with GST laws and the proper conduct of business to ensure smooth tax operations and conformity with legal business guidelines.

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