GST Requirement for Additional Place of Business During Factory Construction

A company is having GST registration for its existing factory in state of Haryana. It is commencing construction of a new factory building at different address than its registered GST location but in the same city of Haryana. Goods and services will be purchased as required for construction of the factory building. Completion of building may take one year or so. Plant and machinery will be purchased at later stage.

My query is whether at this stage the Company is required to get added this second address as additional place of business in its existing GST registration certificate or this may be done when plant and machineries are purchased and meanwhile construction material and services may be purchased on ‘billed to shipped to address’ basis.

Based on the GST regulations, a company is required to add a new premises as an additional place of business in its existing GST registration certificate if it meets certain conditions.

Conditions for Adding Additional Place of Business: -

*Separate Business Vertical*: The new premises must be a separate business vertical or a distinct unit, which in this case, is a new factory building. -

*Different Address*: The new premises has a different address than the registered GST location, although it's in the same city. -

*Goods and Services Purchases*: The company will be purchasing goods and services for the construction of the new factory building.

Requirement to Add Additional Place of Business: Given the above conditions, it's recommended that the company adds the new factory building as an additional place of business in its existing GST registration certificate.

Timing of Adding Additional Place of Business: Although the company can add the new premises at any time, it's advisable to do so before making significant purchases of goods and services for the construction of the new factory building.

Billing and Shipping Arrangements: Until the new premises is added to the GST registration certificate, the company can continue to purchase construction materials and services on a 'billed to- shipped to' address basis, using the existing GST registration certificate.

Conclusion: To maintain GST compliance and avoid potential issues, it's recommended that the company adds the new factory building as an additional place of business in its existing GST registration certificate at the earliest opportunity.