Mandatory Display of GST Registration Certificates and GSTIN at Business Premises

All businesses registered under the Goods and Services Tax (GST) are obligated to prominently exhibit their GST registration certificate at their primary business location. Additionally, they must display their Goods and Services Tax Identification Number (GSTIN) on the name board at both the main and any auxiliary business premises listed on the registration certificate.

Recent Updates on GST Registration

In recent developments concerning GST registration:

• December 21, 2021: Effective January 1, 2022, the Central Board of Indirect Taxes and Customs (CBIC) mandated Aadhaar authentication for applying to revoke a cancelled GST registration, as per CGST Rule 23 in REG-21.
• August 29, 2021: Taxpayers whose deadline to revoke a cancelled GST registration fell between March 1, 2020, and August 31, 2021, received an extension until September 30, 2021. This applied to cancellations under Section 29(2) clause (b) or (c) of the CGST Act, as per CGST Notification No. 34/2021.
• May 28, 2021: The deadline for filing applications for revocation of registration, originally between April 15, 2021, and June 29, 2021, was postponed to June 30, 2021.
• May 1, 2021: The timeframe for actions, replies, or order issuances under Rule 9 of the CGST Rules, 2017, that were due between May 1, 2021, and May 31, 2021, was extended until June 15, 2021.

What Constitutes a GST Registration Certificate?

A GST registration certificate serves as official documentation confirming a business's enrollment under India's GST framework. Businesses exceeding a predefined turnover threshold are legally obliged to register for GST. Eligible entities must submit their registration application through the official GST portal. Upon successful registration, the business can digitally obtain its GST registration certificate (Form GST REG-06) directly from the portal, as no physical certificates are issued. This certificate maintains its validity until it is either voluntarily surrendered or officially cancelled.

Is the Display of a GST Registration Certificate Obligatory?

Yes, according to Rule 18 of the Central Goods and Services Tax (CGST) and State Goods and Services Tax (SGST) Rules, businesses are mandated to exhibit their GST registration certificate. This requirement extends to both the main business location and any supplementary business premises.

• Rule 18(1) of CGST/SGST Rules: This provision stipulates that all registered taxpayers must prominently display their registration certificate at their principal place of business and all additional business locations. While "prominent location" is not explicitly defined in GST law, it is understood to mean a visible spot accessible to customers or visitors, such as a framed certificate near the entrance.
• Rule 18(2) of CGST/SGST Rules: This rule mandates that all registered taxpayers must also display their GSTIN on the name board at their primary and any additional business locations. Common practices include printing the GSTIN on the main signboard or affixing a clearly visible display at the entrance.

Requirement for Displaying GSTIN on Name Boards

The primary rationale behind mandating the display of GSTIN on name boards is to inform customers and visitors that the business is GST-registered, thereby enabling them to request a legitimate tax invoice. Failing to issue an invoice for goods or services supplied constitutes an offense under Section 122 of the CGST Act. This measure serves as a control mechanism on taxpayers, ultimately aiding in the prevention of tax evasion.

Special Stipulations for Composition Scheme Taxpayers on GST Display

Taxpayers operating under the GST composition scheme are subject to distinct requirements regarding the display of their GSTIN and related information:

• Invoice Issuance: Composition taxpayers must issue a 'Bill of Supply' instead of a tax invoice. This document must clearly state, 'composition taxable person not eligible to collect tax on supplies,' and should not include any Integrated GST (IGST), Central GST (CGST), or State GST (SGST) components.
• Business Premises Signboard: The signboard at the primary business location, as well as any additional locations, must visibly include the phrase 'Composition taxable person.'
• Name Board Details: On their business name board, composition taxpayers are required to display both their GSTIN and the designation 'Composition taxable person.'

Penalties for Non-Display of GST Registration Certificate or GSTIN

Although the GST Act does not specify a direct penalty for failing to display the GST registration certificate or GSTIN, Section 125 of the CGST Act allows for a general penalty in instances of non-compliance where no particular punishment is outlined. Consequently, authorities may levy a maximum penalty of Rs. 25,000 on a taxpayer who does not exhibit their GST registration certificate as required.