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Legal Name vs. Trade Name under GST

Every GST Return form asks for legal name and trade name of the taxpayer or business/enterprise. However, before furnishing GSTR Form it is important for you to know the difference between Legal name and trade name under GST.

Legal Name vs. Trade Name

What is the difference between Trade Name and Legal Name?

The legal name is a name that is registered at the time of incorporation of a company or business. The legal name is generally the name of the company on the PAN.

On the other hand, the trade name is the name that is used in normal business practices or common parlance.

Let us understand with an example:

Indigo is a name that is commonly known by everyone, so, it is a trade name. On the contrary, the registered or legal name of the Indigo is Inter-Globe Aviation Limited.

Points to Remember

  1. To verify the legal name and trade name of the taxpayer Form GST REG-06 issued by the authority shall be checked.
  2. In the case of company or business that is registered under Companies Act 2013, their trade name and legal named can be checked with the help of Incorporation certificate issued by Registrar of company.
  3. If it a partnership firm then in such case their legal name and trade name can be verified using the certificate issued by the Registrar of Firms.

Mismatch Scenarios

The following are two major mismatch scenarios that are commonly faced:

Absence of the trade name on the registration certificate.

The difference of legal name under different statute or law.

However, this can be rectified by amending the legal name or trade name as per the certificate of incorporation.

For instance:

If a company name in the incorporation certificate is Shree XYZ Pvt. Ltd. whereas in the GST registration certificate it is Shri XYZ Pvt. Ltd.

So in this case, the name in the GST registration certificated shall be corrected as per the name mentioned in the incorporation certificate.

The Bottom Line

Through the above statements, we can conclude that trade name and legal name of the company/enterprise or partnership are two different things. Further, these names shall not be interchangeably used. Lastly, it is important to know the difference between Legal Name and Trade name.

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GST Compliance