CGST Act 2017, Definitions

Principal Place of Business | Section 2(89) of CGST Act 2017

Introduction:

The GST Act came in force from 1st July, 2017. There were many interpretation issues with respect to the definitions, glossary and terms use in the law. Since, such definitions were adopted from various legacy laws in India prior to GST; such as Service Tax, State VAT, Central Excise Act, Luxury Tax, Entertainment Tax, etc. it was difficult to make applicable one definition for different sectors. Hence, some modifications from existing definitions were made. Therefore, it was important to established a nexus of the terms used in the GST definitions. The definition discussed here is”Principal Place of Business”.

So what do you mean by “Principal Place of Business”?

Section 2(89) of CGST Act, 2017 – “principal place of business” means the place of business specified as the principal place of business in the certificate of  registration;

Conclusion:

“Principal Place of Business” means the place of business specified as the principal place of business in the certificate of registration where the taxable person keeps and maintains the accounts and records as specified under section 42:

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