Party running other than the registered address

[Rajesh Kumar]

Dear sirs,

I want to know that what will be the consequences if-

1. Party is running other than the address registered under GST.

2. Party taking ITC on the same invoice which reflecting other address.

3. However , GSTN mentioned on the input invoices is correct but address is wrong.

Please suggest what action GST department can take against the party. Is ITC ineligible ?

[Rajagopalan Ranganathan]

Sir,

The invoice should contain address to which the invoice should be raised and the address where the goods are to be supplied or service is to be provided. if the invoice contains your registered office address only then you cannot avail the credit at a place other than the registered premises. If you have more than one place of business then you can avail the facility of input tax distributor.

[KASTURI SETHI]

1. Serious offence. All transaction are unauthorised. Penalty will be imposed.

2.Serious offence. ITC will be disallowed. Penalty imposable. Interest chargeable.Under Section 155 of CGST Act the burden of proof is cast upon the person who takes ITC.

3.Serious offence . Subject to litigation.

If remedial measures are taken immediately by bringing all the lapses to the notice of the department. You will save penalty and other actions by the department. Inform the department in writing in order to prove your bona fides.

[Nandan Khambete]

Are there 2 GSTIN ? If not, is ITC claimed in GST Return of same GSTIN when its one unit sells to other unit ?

Question is not clear. Kindly give illustration to advise accurately.

[Rajesh Kumar]

For illustration, let's consider manufacturer M/s ABC having GSTIN . 06BCJPK..... and registered principal address Plot.No. 473, Model Town. But physically factory is running at Plot. 12 ,industrial Area of same city. Now party taking the ITC on the input invoices having address of recipient PlotNo. 12, Industrial Area but GSTIN same I.e. 06 BCJPK...

Now my question is whether party eligible to take credit on that invoices having different address but actual GSTIN.

No additional premises. Only single premise registered.

Is actual GSTIN mentioned on invoices is not sufficient to take credit ?

[KASTURI SETHI]

Dear Querist,

Your transactions may be genuine but all the transactions are not in letter ans spirit of CGST Act/Rules. Keeping in view a large number frauds detected by the department, Govt. has become very strict. Even if any registered person does not display signboard (indicating GST registration number) at proper place, SCNs are being issued for imposition of heavy penalty. If not corrected, you will face litigation that may be of technical nature. Nobody likes to face the rigours of litigation. It is my duty to make you aware.

[YAGAY andSUN]

We endorse the views of experts and following is our revert that on the Tax Invoice if wrong address is mentioned then it is correctable error provided both the units are in the same State and both the place are mentioned in the GSTIN.

[adam raju]

As others have mentioned, do amend the registration asap to include the additional premises in your registration. Informing them now will invite unnecessary trouble and will not really give any edge as department will always it is deliberate.

Coming to the main question the offence committed by you is giving incomplete details in the registration application and you are liable for penalty therefor on any given day. I think it can be the general penalty under section 125 of the CGST Act, 2017 which may be up to 25000/-. ITC is governed by Section 16 read with rule 36 of the CGST RULES. I do not see any clause under these provisions to deny ITC credit. The concept of "Registered premises" under the CE Act, 1944 is changed to "Registered person". Since you are registered and the inputs have been used in relation to furtherance of business, you stand a great chance of winning the dispute in case the department raises that. Per se it is not tenable particularly given the fact that it was very unclear when it got implemented with undue haste and little preparation and ground work.

But do add the additional places asap as advised by others.

AI Summary

Operating from Non-Registered Address Risks GST Penalties and ITC Issues; Amend Registration Promptly for Compliance. A party inquired about the implications of operating from a non-registered address under GST and claiming Input Tax Credit (ITC) on invoices with incorrect addresses. Experts advised that such actions could lead to penalties, disallowed ITC, and potential litigation unless promptly rectified by notifying the GST department. They emphasized the importance of amending GST registration to include all operational premises to avoid penalties and ensure compliance. While some experts noted that ITC might still be claimable if the GSTIN is correct, they recommended immediate corrective measures to prevent future disputes and penalties.