Registration

[GOPAL CHOWDHURY]

We have taken registration under GST indicating head office as principal place of business not the factory, but we have bond in the factory address and now we want to take LUT under head office address by surrendering the Bond.

we want to know is what we have done showing head office as a principal place of business and doing despatch of goods from factory is correct or any amendment required.

Experts kindly let me know with relevant provisions under GST.

[DR.MARIAPPAN GOVINDARAJAN]

If the factory is within the State you may add the factory as the additional place of supply in your registration certificate.

[GOPAL CHOWDHURY]

Sir I am asking can I take LUT/Bond in the factory address or at Head Office address which I declare as a principal place of business.

Kindly let me know if a business entity has 7 factories in the same state and registered under same GSTN and if they want to export from any of the factory, did he have to take LUT/Bond in that factory address or at Head Office address which was declared as principal place of business in the registration.

[KASTURI SETHI]

Principal place of supply should be factory and not head office. Head office should be additional place of business. Head office is neither godown. nor depot. Initially mistake has been committed. Amendment in registration application/certificate is required. As per law there is provision for change/amendment in application for registraion already filed. Whether that provision has been activated or not I am not aware.

[GOPAL CHOWDHURY]

Dear Sir,

As provided under section 22 to 30 of the CGST Act, 2017 which is related to the registration under GST, no where it is mentioned to consider factory as a principal place of business and Head office as additional place of business.

If a manufacturer has 7 factories under a single registration, how he can take LUT under such circumstances.

kindly let me know.

[DR.MARIAPPAN GOVINDARAJAN]

The principal place of business may be the registered office. In our case(BSNL) registration for Tamil Nadu is taken at the head office of Tamil Nadu circle and adding the exchanges all over Tamil Nadu as additional places.

[KASTURI SETHI]

Yes, Sir. You are 100% right.

[Ganeshan Kalyani]

I agree with Sri Kasturi Sir.

[Ganeshan Kalyani]

As suggested by Sri Kasturi Sir, the factory should be the principal place of business.

[subramanian vijayakumar]

In my point of view normally the dealer's would raise invoices from the registered head office wherein they maintain book's of accounts

Hence the bonds to be raised only from head office

Factory if it is within the same State they can show it is additional place and can despatch goods from there

I expects experts opinions

[GOPAL CHOWDHURY]

Dear All,

I have seen all your views, still the question left, is there any provision to consider factory as a principal place of business as all the despatches were done from factory it should be consider as a principal place of business, but no such provision is there under section 22 to 30 of the CGST Act, to consider factory or head office as a principal place of business.

If a company has 7 factories under single registration how he can avail LUT/Bond for export in such a case from any of the one factory.

let me know.

[KASTURI SETHI]

I am talking logically now. It is a matter of common knowledge that a factory should be declared principal place of business. LUT or Bond should be registration certificate-wise. If one registration certificate contains seven factories Unit no.1,2,3 ........... of the same company.One LUT or Bond will cover all seven factories. Law has not answer to all queries. That is why Board issues circulars. The purpose of LUT or Bond is to bind the assessee legally to pay Govt. dues if arise due to unforeseeable circumstances. All experts of this forum who have replied to your query cannot be wrong. See the definition of place of business or principal place of business in Section 2 means for 'Definition of terms 'in GST.

[KASTURI SETHI]

Dear Querist, It is my experience that when either law is silent or confusion in the law common sense prevails. Pl.note that an asseessee should be concerned with aspect that there should be no revenue loss. GST law, being new born, procedural lapse will not attract penalty. Govt. wants to make GST popular as well as viable. So be tension-free and relaxed.

AI Summary

Principal place of business: whether LUT/bond follows factory or registered head office affects export compliance under GST.
Whether LUT/bond must be issued at the factory or at the head office depends on registration practice: a factory within the State can be added as an additional place of business, registrations may record the head office as principal with factories as additional places, and a single LUT/bond issued registration-certificate-wise can cover multiple factories under the same GSTIN; amendment of registration is available where initial entries were mistaken and administrative guidance may resolve statutory silence.