Penalty for failure to register for GST

According to the GST Act, there is a direct penalty for failing to get GST registration in India, which is charged even if the registration is late. According to Section 122 of the CGST Act, any taxable person who fails to get GST registration despite being required to do so under the act faces a penalty of Rs.10,000 or the amount of tax evaded or any short tax due, whichever is greater. As a result, if a person fails to register for GST and the entire tax liability after the calculation is Rs.2 lakh, the penalty for failure to register for GST is Rs. 2 lakh or Rs.10,000, whichever is greater, and hence Rs.2 lakh is assessed.

Penalty for failing to register for GST on time

In general, the penalty is imposed once the individual has been caught by the tax authority. The above-mentioned penalties will apply if the department issues you a notice and you subsequently apply for GST registration.

Looking for GST Registration? Get in touch with our experts

1 If there is no registration, will the late costs still be charged?

Whether the late costs charged for filing GST returns after the deadline also applies in cases where a person chooses not to register for GST is another important topic.

The answer is no. The late fees under section 47 shall not apply because they apply only to registered persons, and since the person in our situation is not a registered person, the penalty for failure to file a GST return shall not apply.

2 The Effect on Compliance Ratings

The concept of compliance rating under GST is entirely different. A compliance rating is similar to a cibil score in that it determines a person’s creditworthiness. Likewise, the compliance rating will evaluate both excellent and bad GST taxpayers.

As a result, if a person fails to obtain GST registration or fails to file GST returns on time, their compliance rating would suffer.

How Can Lead India Assist?

As you can see, there are numerous compliance requirements for startups to follow after incorporation. To someone who is new to the business world, the procedure of company post-incorporation compliance can appear complicated. As a result, it is prudent to get the advice of an expert, such as Lead India, before incorporating your firm to ensure that you remain on the right side of the law. Our Accounting and Bookkeeping & Compliance (ABC) package, expertly led by a team of qualified lawyers, chartered accountants, and company secretaries, can assist you in understanding the legal elements of running a business so that you are always compliant. So, what are you holding out for? Join together with us at Lead India Law to build the business of your dreams!!