RULE 18 OF CGST OR SGST RULES, 2017

(1) 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.

(2) 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.

COMMENTARY ON RULE 18 OF CGST OR SGST RULES, 2017

This Rule creates obligation on registered person and as per section 2(94) of CGST or SGST Act, 2017, registered person means a person who is registered under section 25 (whether compulsory registration (as per section 22 or 24) under section 25(1) of CGST or SGST Act, 2017 or voluntary registration under section 25(3) of CGST or SGST Act, 2017) but does not include a person having Unique Identity Number).

As per Rule 18(1) registered person is required to display his certificate of registration or registration certificate or RC in prominent location at his principal place of business and at every additional place or places of business. You must be aware that a person having multiple places of business can take single GST registration by declaring one place as principal place of business and other place or other places as additional place of business and registered person will display his RC at all the business place or places (principal place of business and additional place of business if any). Registration certificate shall be displayed in a  prominent location of business place. Prominent location has not been defined under GST Law but you can say this place will be such place where customer or visitor can notice your RC. Generally you must have seen person who is registered under GST law displays his GST RC by getting it framed or pasted on the wall through A4 size paper just after entrance.

As per Rule 18(2) registered person shall display GSTIN (Goods and Services Tax Identification Number) on his name board which is hanged or showed at the entry of his principal place of business and at every additional place or places of business if any. You must have noticed when you visit market then you notice that shopkeeper has mentioned his GSTIN on his name board (on right top corner or left top corner of the name board) and some people instead of writing at name board show their GSTINs by pasting A4 size paper having GSTIN but requirement is to display GSTIN on name board which is clearly mentioned in rule 18(2).

Purpose of Rule 18 is to provide information to customer or visitor that this person is registered under GST so that customer can ask for invoice (tax invoice or bill of supply or invoice cum bill of supply) therefore creating check on registered person through customer and you must be aware that supply of goods or services or both without issuance of invoice is an offence under section 122 of CGST or SGST Act, 2017.

Non-compliance with Rule 18 may attract maximum penalty of Rs.75,000 (refer section 125 of CGST or SGST Act, 2017 i.e. general penalty ) .

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Disclaimer – Author has exercised utmost care while writing this article, but still this article may contain some error or mistake and no part of this article/writing should be construed or considered as any advice or consultancy whether professional or otherwise. Author may be reached at [email protected] or [email protected]

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Qualification: CA in Practice
Company: KARACT FILINGS
Location: New Delhi, Delhi, India
Member Since: 26 Jan 2018 | Total Posts: 25
Chartered Accountant having more than 6.5 years of very rich experience in the field of GST, Custom, Income-tax, Company law, LLP law, Corporate law, pre-GST regime indirect tax laws (VAT, Service tax,, Excise law etc.), FCRA, FEMA, Accounting, Financial reporting, Ind-AS, IFRS, stock market etc. View Full Profile

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