Me and my brother are having different partnership firms, we were having our own business premises which we have to sold due to some reasons, and now we have shifted to a new premises which we are sharing and it is rented and owner of the premises habe made a rent agreement and have also given permission to share the same premises to use for other partnership firm. We applied to GST for change of address formalities on new address but, GST authorities are saying that they will not transfer our registration number to new premises as it is shared and two different partnership firms can not run business at same shared business premises. What is the solution to this scenario. Please give your valuable advise to solve the issue. Regards.
This is a common issue when two different firms share the same rented premises and want to update their GST registration address.
Why GST authorities are refusing:
GST law expects the principal place of business to be exclusive to the registered entity.
Sharing the same address by two different legal entities (partnership firms here) can raise compliance and verification issues.
Possible Solutions:
Separate Address Proof for Each Firm Even if you share the same physical location, ensure each firm has a separate, distinct space within the premises with its own:
Separate rent agreement or
Owner’s NOC specifying permission for both firms to operate from the same premises but as distinct units
Modify Rent Agreement / Owner’s Permission Ask the property owner to provide:
A separate rent agreement for each firm (even if for shared space)
A specific NOC or declaration stating that multiple firms are allowed to operate from the premises independently
Communicate with GST Officer Submit the above documents to GST authorities to show that:
Both firms have legitimate and distinct rights to operate from the premises.
This should help them accept the change of address without refusing registration transfer.
If Separate Space is Not Possible If truly both firms share the same space and can’t get separate rent agreements or NOCs, consider:
Registering one firm’s principal place as the shared premises
For the other firm, take a different principal place of business (maybe a virtual office or a rented coworking space) for GST purposes
Summary:
The key is providing clear, legal, and distinct proof of address and permission for each firm at the shared location. Without this, GST authorities may reject the address change.
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