GST Verification Campaign: Rs 50K fine not displaying GSTIN: The Central Board of Indirect Taxes and Customs has advised businesses registered on the GST network site in Punjab’s Bathinda to display their GST number at their locations or risk a fine of up to Rs. 50,000. All business owners are required to strictly abide by the GST number display guideline because the CBIC is conducting a GST verification campaign through September 15 at this time.
The initiative aims to improve GST collection and verify every owner of a GST-registered company’s registration. The district, which has approximately 14,000 businesses, has been divided into 9 wards by the GST department. Businesses are required to post their GST number on the wall or the main board of their buildings.
Dealers who fail to display their GST number may be fined Rs 50,000 (Rs 25,000 by the state government and Rs 25,000 by the center), according to AETC Kapil Jindal. He asserted that many business owners disobey this rule, and some even fraudulently collect GST from customers.
Owners of dhabas or restaurants with annual sales of under 50 lakhs are governed by the composite system and are not allowed to collect GST. But these tiny restaurants and dhabas also impose a 5% GST on their patrons.
The taxes agency will enforce the law aggressively and take action against anyone who do not comply. Officials are beginning the effort by visiting businesses that have claimed input tax credits in excess of sales. The display of the GST number will assist officials in determining whether or not they have deposited the tax.
Every taxpayer under the GST regime is provided with a State + PAN-based 15-digit Goods and Services Taxpayer Identification Number (GSTIN).
Here is the breakdown of the GSTIN format-
- GSTIN Full Form: Goods and Services Tax Identification Number
- First 2 Digits: The first 2 digits of the 15 digit GSTIN represents the state code.
- Next 10 Digits: The next 10 digits are the PAN of the person or the business entity.
- Thirteenth Digit: The thirteenth digit is based on the number of registrations done by the firm within a state under the same PAN.
- Fourteenth Digit: The fourteenth digit will be the alphabet “Z” by default
- Last Digit: The last digit is called the check code to detect errors and can be denoted by either a number of an alphabet
Points to be considered at GST Verification
- Displaying GST Numbers: Businessmen in Bathinda, Punjab, are required to prominently display their GST numbers on the main board or wall of their shops.
- Fine for Non-Compliance: Those who fail to display their GST numbers may face a fine of up to Rs 50,000, with Rs 25,000 being charged by the state government and Rs 25,000 by the Central government.
- Fraud Prevention: The campaign is aimed at preventing GST fraud, where some businessmen may be collecting GST from customers but not remitting it to the government.
- Composite Scheme for Small Restaurants/Dhabas: Small restaurants or dhabas with an annual turnover of less than 50 lakhs are included in the composite scheme and should not be charging GST from customers. However, some are still charging five percent GST, which is not allowed.
- Strict Enforcement: The taxation department is committed to taking strict action against those who do not comply with the GST number display rule. They are particularly focused on businesses that have claimed input tax credits in excess of their sales.
- Wards and Business Registration: The GST department has divided the Bathinda district into nine wards, with approximately 14,000 registered firms. The campaign aims to verify the GST registration status of all these businesses.
- Increased GST Collection: One of the primary goals of the campaign is to enhance GST collection in the region by ensuring that businesses are correctly registered and following GST regulations.
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