LEGAL TERMINOLOGY IN GST LAW (PART -10)

[Dr. Sanjiv Agarwal]

LEGAL TERMINOLOGY IN GST LAW (PART -10)

(Place and Principal Place of Business)

The Central Goods and Services Tax Act, 2017 (CGST Act) as amended upto March, 2024 contains 124 definitions, the Integrated Goods and Services Tax Act, 2017 (IGST Act) contains 24 definitions and the Union Territories Goods and Services Tax Act, 2017 (UTGST Act) contains 9 definitions of various terms which find place in statutory provisions of GST.

In this ongoing series, author makes an attempt to cover meaning, scope and interpretation of these definitions which forms important and integral part of the legal framework of levy and collection of Goods and Services Tax (GST) in India. Various terms and expressions will be covered in different parts of this series.

Place of Business [Section 2(85) of CGST Act, 2017]

(85) “Place of business” includes––

(a) 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

(b) a place where a taxable person maintains his books of account; or

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

As per section 2(85) of the CGST Act, 2017, ‘place of business’ has been defined as an inclusive definition and it includes -

(a)  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 and/or services; or

(b)  a place where a taxable person maintains his books of account; or

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

‘Place of business’ would include the following places:

(a)  place from where business is ordinarily carried on,

(b)  warehouse,

(c)  godown,

(d) any other place used for storing goods or place to provide or receive goods or services by taxable person,

(e)  place where books of accounts are maintained by taxable person (it may be place of business of agency or any professional),

(f)  place from where a taxable person is engaged in business through agent by whatever name called (like commission agent, C&F agent, consignment agent etc)

It will, therefore, include any one or more or all of the aforementioned places.

Registration of a taxable person is done in reference to his place of business. Address of place of business becomes the registered address, where all the correspondence in relation to GST law will be done. Even the place where the business is carried through an agent will also be called place of business and will be required to be registered.

Principal Place of Business [Section 2(89) CGST Act, 2017]

‘Principal place of business’ means the place of business specified as the principal place of business in the certificate of registration.

For a place of business to be a ‘principal place of business’, following conditions are essential –

(a)  It should be a place of business

(b)  It should be specified as such in registration certificate

(c)  Taxable person may keep and maintain the accounts and records

Section 35 of the CGST Act, 2017, provides for maintenance of accounts and other records by a registered person at his principal place of business, the true and correct account of –

• Production or manufacture of goods
• Inward or outward supply of goods/services
• Stock of goods
• Input tax credit availed
• Output tax payable and paid
• Such other particulars as prescribed

It also provides that where more than one place of business is specified in the certificate of registration, the accounts relating to each place of business shall be kept at such places of business concerned.