As per the Central Goods & Services Tax Act, 2017 any person who fails to obtain Goods & Services Tax Registration or registers late is liable to pay the penalty.
Following are the Penalties to be levied for non-registration or late registration under the Central Goods & Services Tax Act, 2017 -.
Penalty for Not Registering under Goods & Services Tax
According to Section 122 of Central Goods & Services Tax (CGST) Act, any taxable person who is mandatorily required to obtain GST Registration, fails to register under CGST Act, is liable to pay the following amount of penalty:
Tax evaded amount or Rs. 10,000 whichever is higher.
For example;
- Mr. X fails to obtain Goods & Services Tax registration and the evasion of total tax by Mr. X amounts to Rs. 25,000 then in such case Rs. 25,000 penalty shall be applicable.
- Mr. X fails to obtain Goods & Services Tax registration and the total tax evaded by Mr. X amounts to Rs. 7,500 then in such case Rs. 10,000 penalty shall be applicable.
Penalty for Registering Late under GST
No special provision for late registration under GST Law is provided, but there is a general rule that if any taxable person gets caught by the GST authorities for applying late for the GST registration, penalty shall be levied. The amount of penalty applicable in such case shall be:
Tax evaded amount or Rs. 10,000 whichever is higher.
For example;
- X applies late for Goods & Services Tax registrationand the total tax evaded by Mr. X amounts to Rs. 15000 then in such case Rs. 15,000 penalty shall be applicable.
- X applies late for GST registration and the total tax evaded by Mr. X amounts to Rs. 8,500 then in such case Rs. 10,000 penalty shall be applicable.
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Knowledge Source:
Who should register for Goods & Service Tax?