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GST registration on a residential property

Ram Kumar (Studying) (3 Points)

25 September 2024

My client is a AC and fridge repair and maintenance services provider. In the process of getting GST registration, officers kept rejecting the application due to property nature is residential in property tax receipt. I want know is there any rule or amendment regarding the registration can not made on a residential property. Kindly guide me. Thank you

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4 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (180927 Points)
Replied 25 September 2024

Has he obtained Gumasta licence over the property?

Whether light bill is under commercial category?

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sabyasachi mukherjee (27597 Points)
Replied 25 September 2024

Obtain noc for commercial use

Ram Kumar (Studying) (3 Points)
Replied 26 September 2024

NOC from property owner or from the municipality?

Khushbu Bansal (student) (48 Points)
Replied 28 September 2024

There is no specific rule or amendment in the GST law that prohibits registering a business under GST from a residential property. Many service providers, freelancers, and small businesses operate from residential addresses and obtain GST registration without any issues.

However, the GST officers may be rejecting the application due to confusion or a misunderstanding regarding the nature of the business address.

To address the issue:

Clarify the Nature of Business: In your GST application, you can clearly mention that your client's business is a service-based one and does not require a commercial space like a shop or office. Businesses such as AC and fridge repair often use residential addresses for administrative purposes while offering services at clients’ locations.
Submit Supporting Documents: Ensure that you provide all necessary documents, including:
- Rent agreement (if applicable)
- A no-objection certificate (NOC) from the property owner if the property is rented or owned by someone else.
- Any utility bill (electricity bill, water bill, etc.) for the address.
File a Clarification: You can submit a clarification to the officer explaining that the business is a service-oriented one, and there is no restriction on registering from a residential property under the GST Act.