GST – SHOW CAUSE NOTICE

GST Department of states have started sending notices to dealers who have opted for GST Composition Scheme for failure to mention “Composition taxable person” on every notice or Sign Board displayed at a prominent place of their principal place of business and at every additional place of their business. We come across one such notice issued by GST department of Punjab. Extract of Such notice is as follows :-

To,

M/s The …………..

New ……. Jalandhar

Jalandhar- GSTIN ……

Subject: Show cause notice for penal action under section 125 of the Punjab GST Act, 2017, for failure to display Sign Board.

Notice

Whereas you are a registered person under section 10 of the Punjab Goods & Service Tax Act, 2017. As per rule 5 (1) (f) of the Punjab Goods & Service Tax Rules, 2017. you should have to mention the words “Composition taxable Person, not eligible to collect tax on supplies” at the top of bill of supply issued by you and as per rule 5 (1) (g) of the Punjab Goods & Service Tax Rules, 2017, you should have to mention “Composition taxable person’ on every notice or Sign Board displayed at a prominent place at your principal place of business and at every additional place of business.

But as per rules (mentioned above) you: –

1. have not mention the words ‘Composition taxable Person, not eligible to collect tax on supplies” at the top of bill of supply,

2. have not mention “Composition taxable person” on Sign Board displayed at a prominent place at your principal place.

Thus you have contravened the provisions of said rule (s). Therefore, you are directed as to why penalty under section 125 of the Punjab GST Act, 2017. be not imposed. For the above purpose, you are directed to appear in person or through authorized representative.

GST - E-WAY BILL

DIFFICULTIES

1.    Strong end to end technology infrastructure to generate e-way bills still lacking.

2.    The e-way bill system has been rolled out in 10 states. The e-way bill

has to be generated every time worth more than Rs.50000 and beyond a distance of 10 k.m. At the end of each month, companies have to upload all the e-way bills on the GST network. However, many companies do not have a way to track all their shipments on a single technology platform.  Also, since the e-way bill has to be generated for every shipment beyond 10 k.m., companies need to measure in real time the distance between the pickup and delivery points. That may lead companies to miss generating e-way bills, resulting in undue check and blockages while the shipments are en-route.  Also nobody knows who is authorized to check a consignment and who is not. This is one area where regulations are not very clear.

Another key question is what mechanisms will be used to check the value of the shipments.   Additional capital need to invest in technology infrastructure.