CBIC Launches GST Verification Drive with Rs 50,000 Penalty for Non-Compliant Shops

Last updated: 05 September 2023

The Central Board of Indirect Taxes and Customs (CBIC) has initiated a campaign in Punjab's Bathinda district to ensure that businessmen registered on the GST network portal display their GST numbers at their premises. Failure to do so may result in fines of up to Rs 50,000. This campaign is in effect until September 15, and its primary objectives are to verify GST registrations and increase GST collection in the district.

CBIC Launches GST Verification Drive with Rs 50,000 Penalty for Non-Compliant Shops

Key points to be considered here are

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.

In summary, the CBIC campaign in Bathinda, Punjab, is focused on ensuring that businesses comply with GST regulations, including displaying their GST numbers and preventing GST fraud. Non-compliance may lead to significant fines, and the taxation department is actively monitoring and taking action against violators.