Answer

1. F

   Facts

   Supplying without registration when liable attracts a penalty of ₹10,000 or the tax involved, whichever is higher, under Sec 122(1). Tax and interest are also payable from the date you became liable.

2. P

   Provisions and law

   • Sec 122(1), CGST Act 2017Penalty of ₹10,000 or the tax involved, whichever is higher, for listed offences such as supplying without registration, wrong invoices or wrongful ITC.
   • Sec 25(1), CGST Act 2017Apply for registration within 30 days of becoming liable, in every State or UT where liable.
   • Sec 50(1), CGST Act 2017Interest is payable on tax paid late for the period of delay at the notified rate (18 percent a year); on a late return it is levied only on the portion paid in cash, except where proceedings under Sec 73, 74 or 74A have started.
3. A

   Analysis

   Suppose you crossed ₹20 lakh in October and billed ₹8 lakh more of taxable services by March without GST. The tax of ₹1,44,000 at 18 percent is still payable, often from your own pocket, plus 18 percent interest. Registering now and paying voluntarily usually reduces the risk of a larger demand later. Ask for the effective date to match your liability date and then regularise past periods.

4. C

   Conclusion

   1. 1Work out the date your turnover first crossed the limit.
   2. 2Compute GST on taxable sales after that date.
   3. 3Apply for registration now, stating the correct liability date.
   4. 4Pay the tax with interest after registration.
   5. 5Keep working papers to show you came forward voluntarily.

An unregistered person who keeps collecting GST from customers faces a much harsher position than one who simply registered late.

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