Full News
Why does GST law want you to register in mutiple states?
Why does GST law want you to register in mutiple states?
Do you know GST is not a single law; There are 38 laws through which it operates... How? Let me tell you... pull out your calculator... and start adding... How many states are there in India...29... how many Union territories does India have... 7... add them... what do you get... 36... right... Each state and UT has its own GST law... so... we get 36 GST laws. Now about remaining 2... 1 GST law is for Centre and another is for interstate..so...38
So many GST laws... 38 in count... operate together... in tandem... beautifully.
How???
Ofcourse , all the states and UT of India have majestically agreed to some common principles...concepts
And two of those common concepts... which are...actually involved... consensus... as states were incurring loss are
- Place of supply and
- Place of business...
Whereas "Place of supply" determines the state to which tax is to be paid... "Place of business" determines the places (states) where a taxable person has to get registered...
So,
You may say... ask...
What is a place of business?
I may answer very technically like...
Section 2(85) of the CGST Act defines:
Place of business includes-
(a) a place from where 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 accounts or
(c) a place where a taxable person is engaged in business through an agent, by whatever name called...
And ofcourse above is true definition... but I have a small business... and a tiny business...
×
