Every business having GST Registration must display a GST Registration Certificate at their business places. There are also rules to display GSTIN.
This may seem only a small requirement, but ignoring it can result in huge penalties and therefore, you must know all about the display of GST Registration Certificate and Penalties.
GST Laws on Display of GST Registration Certificate
Rule 18 of the CGST/SGST Rules clearly states that the GST registration certificate obtained shall be displayed at the primary place of business along with every additional place of business.
The following subsections of Rule 18 of the CGST/SGST Rule go further into details.
Rule 18(1) of the CGST/SGST Rules
- Under the GST law, every registered taxpayer is obliged to display their registration certificate at a clearly visible location at their primary place of business as well as any other secondary places of business.
- Although the term “prominently location” is not explicitly defined, it is generally understood to mean a location where it can be easily viewed by customers or visitors.
- Typically, taxpayers will display their registration certificate by affixing it to a wall at the entrance or framing it for display.
Rule 18(2) of the CGST/SGST Rules
- This Rule requires all taxpayers having GST Registration to display their GSTIN on its name board at its principal place of business along with every additional place of business.
- Usually, taxpayers get the GSTIN written on its name board at the entrance or paste an A4 size paper having GSTIN written on it at the entrance.
Must know points regarding displaying of GST Registration Certificate
Contrary to what may be commonly understood, the concept of “place of business” under GST guidance is not limited to just the primary location where most business activities are conducted.
Instead, any location where business-related activities take place is considered a place of business under the rules.
To illustrate, consider the following examples:
- If a business stores its goods at a specific location, that location is also considered a place of business.
- If a full-time or part-time accountant edits a business’s documents at their home, even their home is considered a place of business.
- If a business stores its goods with a transporter for a specific period of time, that location is also considered a place of business.
In short. as per the GST rules, it is mandatory for businesses to display their GST number outside their office in a location that is easily visible to visitors.
Additionally, businesses are also required to exhibit their GST registration certificate in a prominent location at every place of business.
Display of GSTIN on Invoices & Name Board
- Under the GST regime, it is mandatory for a person to mention their GSTIN, along with the business name and address, on all tax invoices issued by them.
- Additionally, every tax invoice must comply with the invoice format specified by the GST Rules.
- Moreover, each registered person is required to display their Goods and Services Tax Identification Number on the name board at the entrance of their principal place of business, as well as any additional places of business.
- Failure to issue a tax invoice for the sale of goods or services is considered an offence under Section 122 of the Central Goods and Services Tax (CGST) Act. This provision is designed to monitor taxpayers and deter tax evasion.
Provisions for taxpayers under Composition Scheme under GST
For composition taxpayers under GST, the following guidelines apply to invoices, place of business, and name boards:
A composition taxpayer is required to issue a Bill of Supply that explicitly mentions “composition taxable person not eligible to collect tax on supplies.” The Bill of Supply should not include any Integrated Goods and Services Tax (IGST), Central Goods and Services Tax (CGST), or State Goods and Services Tax (SGST).
Place of business
A composition taxpayer must mention the words “Composition taxable person” on the signboard at their primary place of business as well as at every additional place of business.
Name board at place of business
On their business name board, a composition taxpayer must display the words “Composition taxable person” along with their GSTIN.
Penalties for not displaying the GST registration certificate or GSTIN
- Section 125 of the CGST Act, 2017 provides that any person who contravenes the provisions of the Act or the rules made thereunder, for which no separate penalty has been specified, shall be liable to pay a penalty of up to INR 25,000. This penalty is a general penalty under the CGST Act.
- Issuing an incorrect or false GST invoice may attract a penalty of INR 10,000, as specified under the Act.
- Further, businesses registered under the composition scheme are required to mention that they are not authorized to collect taxes on their invoices. Failure to comply with this requirement and the GST registration rules may result in a penalty of up to INR 50,000
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