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What is the penalty for late registration for GST?

Goods and Services Tax (GST) is a tax levied on the supply of goods and services in India. If you are a business owner, it is mandatory for you to register for GST if your annual turnover exceeds the threshold limit of Rs. 40 lakhs (for goods) or Rs. 20 lakhs (for services). Failure to register for GST can result in penalties and legal consequences. In this article, we will discuss the penalty for late registration for GST.

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According to the GST Act, a person must register for GST within 30 days from the date on which he/she becomes liable to register. If a person fails to register for GST within the prescribed time limit, he/she is liable to pay a penalty. The penalty for late registration of GST is 10% of the tax due or Rs. 10,000, whichever is higher.


For example, if the tax due on a business's turnover is Rs. 2 lakhs, the penalty for late registration would be 10% of Rs. 2 lakhs, which is Rs. 20,000. However, if the tax due is only Rs. 5,000, the penalty would be Rs. 10,000, which is higher than 10% of the tax due.


It is important to note that the penalty for late registration is in addition to the tax liability. In other words, if you register for GST after the due date, you will not only have to pay the penalty but also the tax liability.


If you have missed the deadline for registering for GST, it is advisable to register as soon as possible to avoid further penalties and legal consequences. You can register for GST online by visiting the GST portal at https://www.gst.gov.in/. Once you have registered for GST, you will need to file regular GST returns and comply with other GST regulations.


In conclusion, the penalty for late registration of GST is 10% of the tax due or Rs. 10,000, whichever is higher. It is important to register for GST within the prescribed time limit to avoid penalties and legal consequences. If you have missed the deadline, register as soon as possible and comply with all the GST regulations.

 

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