What happens if your GST Number isn't displayed at your workplace or in your office?
Prime Minister Narendra Modi officially launched GST on July 1st 2017. The government described GST as "one nation one tax" and was aimed at reducing the tax system. GST is a double levy. The Central Government levies the Central GST (CGST) while the State is responsible for the State GST (SGST), for intra-state supplies. The Central Government also collects Integrated GST(IGST) for supply between states. In order to apply the GST Certification Course, the CGST Rules 2017, were implemented. One of the regulations is the Display of GST Registration Certificate. This article will give more details on the issue.What is the GST requirements regarding the the display of registration certificates?
In accordance with Rule 18 (Central Goods and Tax on Services and Goods (CGST) in 2017, Rules:
- Every registered person is required to show his certificate at prominent places at the principal place of business as well as at all other locations for business.
- Every registered person is required to show his Goods and Services Tax Identification Number (GSTIN), on the nameboard upon entry to the principal place of business and at all other locations for business.
In addition to this the Composition dealers should also be able to display the GSTIN number as well as the "Composition tax-paying individual" designation. The GST Law states that a composition dealer is not able to take tax from clients. A tax of nominal amount is due on the total turnover. The nature of their company determines the amount of tax they have to pay. The tax rate can vary between 1% and 55 percent.What is an GST Registration Certificate refer to?
GST registration is mandatory for all businesses that has a turnover greater than the limit set by law. Certain businesses might also have to sign up for GST. Every registered taxpayer is issued GST Registration Certificate in the form GST REG-06. GST Registration Certificate, which is in the form GST REG-06. The certificate is available for download via the GST portal by taxpayers who are registered. The GST Portal allows you to download the registration certificate. The government does not issue physical certificates.What is GSTIN?
GSTIN is an abbreviation for Goods and Services Tax Identification Number. It is an unique 15-digit identification number that is assigned to all taxpayers (primarily suppliers, dealers or business organizations) that are registered under the GST regime. Every taxpayer who is registered under the GST regime is issued an 15-digit State + PAN-based Goods and Services Taxpayer Identification Number (GSTIN).
At first, businesses receive an initial identification number when they sign in to the portal. After three months, businesses must register and provide information about the company. The ID that was issued to the business can be converted into GSTIN. Here's a breakdown of GSTIN format.
- The state code can be depicted by the two first numbers in the GSTIN's 15-digit format.
- The PAN number of an person or company is the following 10 numbers.
- The 13th digit is the amount of registrations filed by the company in a state covered by the same PAN.
- By default the 14th digit of the number will be the letter Z.
- The check code used to identify errors is the last digit. It is expressed as an alphabet or numbers.
According to the GST authorities in India the Principal Place of Business refers to the primary location in which the taxpayer's business operations are carried out. The address where the documents and books of the company are maintained is the primary location of business. It's usually the residence of the head of the company or the highest management.
The Additional Place of Business is the place where the taxpayer is able to engage in business operations within the State. It should not be confused with the principal Place.
The GST Act requires that taxpayers display their GST registration certificate prominently in their primary business location as well as any other locations for business. The GST certificate of registration must be displayed at the entry point of the office or shop.What do you think the implications of not having GSTIN on the board?
Section 125 of the CGST Act 2017 states that anyone who is in violation of any of the provisions of this Act or any rule thereunder that are not subject to a additional penalty is specified is subject to penalties of up to Rs 25000.
This is a general offense in the CGST Act. This crime is not punishable by any specific penalty. It is included in the general penalty.
Therefore, if a registered person fails to show GSTIN at the time of registration and at the time of registration, they will be penalized in accordance with section 125 (CGST Act of India). 25,000.
Sometimes it happens that the GST Department conducts raids on Business premises in order to ensure that the GSTIN No is clearly visible on the signboard. It is recommended to put the GSTIN number to the Signboard and on the front door of the office. A notice could be issued in the event that the GSTIN No is not visible on the signboard or the front door of business premises. A penalty of up to 25,000 could be assessed in accordance with Section 125, CGST Act 2017.
