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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.
GST
Penalty for not taking GST registration on time
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Provisions
Sec 122(1), CGST Act 2017; Sec 25(1), CGST Act 2017; Sec 50(1), CGST Act 2017
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.
Close
- Work out the date your turnover first crossed the limit.
- Compute GST on taxable sales after that date.
- Apply for registration now, stating the correct liability date.
- Pay the tax with interest after registration.
- Keep 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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