GST Non-Registration Penalty, Registration Cancellation / Amendment

GST or Goods and Services Tax was introduced in India on 1st July 2017. It is a single tax that replaced multiple indirect taxes in the country. Under GST, businesses are required to register and obtain a GSTIN (Goods and Services Tax Identification Number) to carry out their operations legally. Failing to do so will result in penalties and even cancellation of registration. In this article, we have answered some of the frequently asked questions on GST non-registration penalty, registration cancellation and amendment.

What is GST Non-Registration Penalty?

GST Non-Registration Penalty is a penalty that is imposed on a business that is required to register under GST but fails to do so. The penalty is 10% of the tax amount, subject to a minimum of Rs.10,000. The penalty is imposed for every day that the business fails to register under GST, subject to a maximum of 100% of the tax amount.

Who is liable to register under GST?

Every business that has a turnover of Rs.20 lakhs or more (Rs.10 lakhs or more for Special Category States) is required to register under GST. Businesses that are involved in inter-state supply of goods or services, casual taxable persons, non-resident taxable persons, and e-commerce operators are also required to register under GST, irrespective of their turnover.

What is GST Registration Cancellation?

GST Registration Cancellation is the process of cancelling the GST registration of a business. A business can apply for cancellation of its GST registration if it is no longer liable to register under GST or if it has ceased to carry out its operations. A business can also apply for cancellation of its GST registration if its registration was obtained by means of fraud, wilful misstatement or suppression of facts. The proper officer may also cancel the registration of a business if he is satisfied that the registration was obtained by means of fraud, wilful misstatement or suppression of facts.

What is GST Registration Amendment?

GST Registration Amendment is the process of modifying the details of a GST registration. A business can apply for amendment of its GST registration if there is a change in any of the details provided at the time of registration, such as name, address, email id, mobile number, etc. A business can also apply for amendment of its GST registration if it wants to add or delete a place of business or change its Principal Place of Business.

What is the penalty for late filing of GST Returns?

The penalty for late filing of GST Returns is Rs.50 per day, subject to a maximum of Rs.5,000. The penalty is Rs.20 per day for taxpayers who have nil tax liability for the period of the return. The penalty for late filing of Annual Return is Rs.200 per day, subject to a maximum of 0.25% of the taxpayer's turnover in the state or union territory.

Conclusion

Non-registration under GST, cancellation of registration and amendment of registration are important aspects that every business owner should be aware of to avoid penalties and legal complications. Businesses should always ensure that they are complying with the GST laws and regulations to carry out their activities smoothly and efficiently.