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Divya   23 June 2021

Gst registration

Will GST registration as sole proprietor from residential address cause commercial tax/electricity charges to be levied on the residential property?


Quick Summary
This discussion explores whether registering for GST as a sole proprietor using a residential address can lead to commercial electricity and tax charges. While a mere address might not be enough, the actual use of the property for business is key. It's suggested that for small handicraft businesses with no significant electricity or space usage at home, GST registration alone shouldn't convert a residential property to commercial. Contacting the District Industries Centre for clarification on exemptions for cottage and tiny units is also advised.

 5 Replies

G.L.N. Prasad (Retired employee.)     23 June 2021

A mere address may not attract such enhanced charges, but actual use is decisive. So far GST is not linked to commercial property and there is no verification procedure.  The electricity bill collector should ensure as to whether as the power is used for commercial purposes or revenue purposes.

Divya   23 June 2021

I am planning to start a handicraft business. There will be no use of electricity or space. So GST registration from my home will not make my property commercial. Is that what you are saying? 

G.L.N. Prasad (Retired employee.)     23 June 2021

Contact  District Industries Center for clarification to your satisfaction as cottage and tiny units are exempted from such taxes charged on commercial purposes.

T. Kalaiselvan, Advocate (Advocate)     25 June 2021

GST Registration giving your house address for the purpose of communication will not attract the sore eyes of the authorities concerned to convert the residential place into commercial proeprty until it is proved that you operate your business from the residential place.

Dr J C Vashista (Advocate)     02 July 2021

It will defiantly attract commercial rate for all purposes. 


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