Understanding Legal Name and Trade Name in GST Registration

Businesses often encounter the terms legal name and trade name when registering for Goods and Services Tax (GST). These terms play a crucial role in understanding the official and commonly recognized names of your business. Here, we clarify the differences and the process for amending these details.

What are Legal Name and Trade Name?

The legal name is the formal name under which a company, partnership firm, or business is incorporated. This name appears on official documents such as the Permanent Account Number (PAN) card. Conversely, the trade name is the name commonly used in business practices. For example, a proprietorship firm might be legally registered under the proprietor's name on the PAN card but conduct its business under a brand name like 'Vandana Creation'

Change in Legal Name

Changing the legal name requires a core amendment. The process involves logging into your GST portal using your credentials and submitting a request for core amendments in the registration particulars. Relevant documents must be uploaded to support the claim for amendment. Typically, the amendment request is accepted within 3 days if no query is raised.

Change in Trade Name

A change in the trade name is a non-core amendment. Once you make an application for amendment in the GST registration particulars, the change is auto-approved. This highlights the ease with which businesses can modify their trade names without any lengthy procedures.

Rectifying Errors in GST Registration

Even after a business has successfully registered for GST, there might be instances where errors or discrepancies are discovered. Rectifying mistakes or changing details is a straightforward process under the GST Act. You need to submit FORM GST REG-14 with the necessary documents. The GST officer will then verify these documents and approve the request within 15 days as per the FORM GST REG-15.

Process for Rectifying Errors

The process to rectify errors involves several steps:

Initiate the process: Submit FORM GST REG-14 along with relevant documents to initiate the rectification process. Verification: The GST officer will verify the submitted documents within 15 days. Approval: If the documents are satisfactory, the GST officer will approve the request. Document submission: The change will take effect from the date of the event unless otherwise specified. Show Cause Notice: If the documents are unsatisfactory, the officer may issue a FORM GST REG-03 show cause notice. The applicant must respond within 7 days using FORM GST REG-04. Final decision: If the response is not satisfactory, the officer may reject the application and pass an order using FORM GST REG-05.

These steps outline the comprehensive and systematic approach to rectifying errors in your GST registration without the need for a fresh application.

Beyond the nuances of legal and trade names, the flexibility and ease of rectifying errors in GST registration should provide businesses with peace of mind and confidence in maintaining accurate and up-to-date information.

Photo Source: Google search result