Maharashtra Government Mandates GSTIN Display with a Rs. 25000 Penalty On Non-Compliance

The Maharashtra Government in a trade circular titled “43T of 2017” notified all businesses within its jurisdiction to showcase their GSTIN in front of their principal and additional places or face a fine of up to Rs. 25,000. These businesses will also have to show their Certificate of Registration on demand.

The circular comes directly from Rajiv Jalota, the Commissioner of Sales Tax of this state. He said that every business must display their GST Identification Number on the board visible upon entry into the establishment. The number must be in bold lettering to make it visible for every vender/customer.

This directive is part of the Maharashtra Goods & Services Rules, 2017:

Rule 18 - display of Goods and Services Tax Identification Number on the name board and registration certificate.

• Every registered individual shall show his/her GSTIN on the name board at the entry of their principal and additional place of business.   

• Every registered individual shall show his/her Certificate of Registration at a prominent place at their principal and additional area of business.

The circular also notifies a penalty of Rs. 10,000 for an improper supply of tax invoice. Invoices are often numbered incorrectly, randomly, or not numbered at all. Not mentioning a consecutive serial number on invoices will cause for a fine under Section 122(1)(i) of the Maharashtra GST Act, 2017.

The rules that pertain to the above are:

Rule 5 - conditions and restrictions for composition levy.

• A registered individual must mention that he/she is a composition     taxable individual and that he/she is not qualified for tax collection on supplies on each invoice he/she has supplied to a customer [5(6)].

Such persons also have to mention he/she is a composition taxable individual on every board and notice at a prominent place in his principal or additional areas of business [5(7)].

Rule 46 - tax invoice.

• A tax invoice must contain a serial number containing numerals,     alphabets, or special characters and must not be longer than 16     digits.

Businesses with a yearly turnover of Rs. 40 Lakh need to register themselves mandatorily and avail all GST benefits. They can do so online by visiting the official portal of GST.

The form is split into two parts - Part A and Part B. Applicants will receive their certificate of registration with the GST Identification Number after successful completion of the process.

Entities with a turnover of up to Rs. 1.5 Crore can also opt for the Composition Scheme, and avail the revised GST rates.

Hence, these businesses can opt for external financing without any burden on their revenue.

Businesses have to know what is GST in details to comply with its terms to avoid any penalties.