Coimbatore: It is mandatory for shops, businesses and industrial units to display registration certificates and GST numbers. Officials periodically conduct inspections to ascertain this is followed by all the businesses.
Coimbatore: It is mandatory for shops, businesses and industrial units to display registration certificates and GST numbers. Officials periodically conduct inspections to ascertain this is followed by all the businesses.
This being the case, more than 2 lakh businesses in Coimbatore, Tiruppur and Nilgiris that have violated this rule and not displayed registration certificate and GST number have been warned of a hefty spot fine of Rs. 50,000.
There are more than 2 lakh tax establishments(Shops, industries etc) functioning at Coimbatore, Tiruppur and Nilgris districts who pay both SGST and CGST. It is mandatory for all the establishments to display the details of the proprietors such as name, address along with their registration certificates and GST numbers. Due to negligence and lack of awareness, many taxpayers do not follow this rule.
Sources from Central GST office in Coimbatore said, "It is mandatory for all establishments to mention RC and GST number on their display boards. There are more than 2 lakh GST tax payers in Coimbatore, Tiruppur and Nilgris, but more than 95% of them do not follow this rule."
What does the rule say?
As per the rule 18 of CGST rules, 2017, "Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business. Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business. Sec. 125 of the CGST Act prescribes a general penalty for contravention of any of the provisions of the Act or Rules made thereunder. Therefore, a registered taxable person who does not follow the provisions contained in Rule 18 will be liable for penalty which may extend to Rs. 25,000."
"If officials find this rule has been violated, they can fine Rs 25,000 under SGST and another Rs 25,000 under CGST (Total : Rs 50,000) on the spot. Usually the department takes stringent actions on revenue leakages, but this comes under procedure lapse because of which it is not strictly enforced. But, periodic action may be taken any day and if and when that happens, the violators of the rule have to pay Rs 50,000 spot fine. Some of them may be unaware, but most of the violations are due to purposeful negligence of the proprietors." sources said.
This being the case, more than 2 lakh businesses in Coimbatore, Tiruppur and Nilgiris that have violated this rule and not displayed registration certificate and GST number have been warned of a hefty spot fine of Rs. 50,000.
There are more than 2 lakh tax establishments(Shops, industries etc) functioning at Coimbatore, Tiruppur and Nilgris districts who pay both SGST and CGST. It is mandatory for all the establishments to display the details of the proprietors such as name, address along with their registration certificates and GST numbers. Due to negligence and lack of awareness, many taxpayers do not follow this rule.
Sources from Central GST office in Coimbatore said, "It is mandatory for all establishments to mention RC and GST number on their display boards. There are more than 2 lakh GST tax payers in Coimbatore, Tiruppur and Nilgris, but more than 95% of them do not follow this rule."
What does the rule say?
As per the rule 18 of CGST rules, 2017, "Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business. Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business. Sec. 125 of the CGST Act prescribes a general penalty for contravention of any of the provisions of the Act or Rules made thereunder. Therefore, a registered taxable person who does not follow the provisions contained in Rule 18 will be liable for penalty which may extend to Rs. 25,000."
"If officials find this rule has been violated, they can fine Rs 25,000 under SGST and another Rs 25,000 under CGST (Total : Rs 50,000) on the spot. Usually the department takes stringent actions on revenue leakages, but this comes under procedure lapse because of which it is not strictly enforced. But, periodic action may be taken any day and if and when that happens, the violators of the rule have to pay Rs 50,000 spot fine. Some of them may be unaware, but most of the violations are due to purposeful negligence of the proprietors." sources said.