Checklist for GST Audit of Legal Name and Trade name

CA Ruchika Tulsyan 
on 18 June 2019


GST Audit have two Parts: PART-A is Reconciliation Statement and PART-B is Certification

PART A is divided into 5 sub-parts.

Part I contains basic details of taxpayer, while doing GST Audit of basic details following points needs to be considered:

1. Financial year - Generally financial year start from April-March, but here GST was implemented from July 17 hence, for financial year 2017-18 it will be July-March.
2. GSTIN - Registered GSTIN of taxpayer
3A. Legal Name -
3B. Trade Name -
4. Are you liable to Audit under any other Act?

Legal Name and Trade Name

What is the difference between Trade name and legal name?

Trade name is something through which business is commonly known between trade and industry, in other way trade name is symbolizing of reputation or Goodwill of business.

For instance, "Indigo" could be a trade name while the legal name is 'Inter Globe Aviation Limited”. Likewise, 'Chancery Pavilion'is a trade name and 'Elixir Enterprises and Hotels Private Limited'is a legal name.

If business have no trade name then 3B of Part A would be not applicable.

Point to consider

a. The legal name and trade name should be verified with the certificate of registration

Issued by the tax department in Form GST REG - 06.

b. If the Registered Person is a company registered under the Companies Act, 2013, the legal name / trade name can be verified with the Certificate of Incorporation and in case of partnership firm by the certificate issued by the Registrar of Firms.

Mismatch scenarios

Legal name in the documents under other statute does not match the legal name on the registration certificate. Trade name is not disclosed on the registration certificate.

Impact of Mismatch

Difference between trade name and legal name needs an amendment in appropriate law.

E.g., the name of the Company in the Certificate of Incorporation is 'XYZ Advertising Private Limited'whereas in the certificate of registration under GST it could be 'XYZ Advertising Limited'which would require an amendment considering correct name as mentioned in certificate of incorporation.

Conclusion

Hence, difference between Trade name and legal needs to be clearly understood it should not be interchange with each other.

The author can also be reached at ruchika.tulsyan@gmail.com


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