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TMI BlogFailure obtaining GST registerationX X X X Extracts X X X X X X X X Extracts X X X X ..... Sir. what will be the penalty in case of failure to register under GST even after crossing the threshold limit. will the same change if client voluntarily register now and pay taxes before receiving nay notices? kindly reply - Reply By KASTURI SETHI - The Reply = Failure to obtain registration despite crossing threshold limit is a very very serious lapse. All transactions will be unauthorized. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Multiple penalties can be imposed upon.The department can easily invoke Section 74 of CGST Act . If registration is obtained now (without detection by the department) and pay GST along with interest, the department may take lenient view and impose minimum penalty. Such voluntary deposit of tax along with interest will prove the assessee's bona fides. See Section 126(5) in this context ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Penalty of Rs.10,000/- under Section 122 (xi) for non-registration. Just for knowledge sake, also go through Section 67 of CGST Act in this context. - Reply By Amit Agrawal - The Reply = Please refer to sub-section (5) (6) of Section 73 too. - Reply By Shilpi Jain - The Reply = I am assuming that even though registered late, tax will be paid subsequently even for those t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransactions along with interest. In such a case for the period where registraiton was required but not taken penalty could be liable as per section 122(1)(xi) amounting to Rs. 10k each under SGST and CGST is liable to be registered under this Act but fails to obtain registration Once taxes are paid before issue of notice, no penalty would be liable. - Reply By KASTURI SETHI - The Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly = I agree with Madam Shilpi Jain. Taxes along with interest are to be paid before issuance of notice in order to avoid penalty. Section 73 (8) is also worth reading in this context. Section 73 (8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. - Reply By Ravinesh Sinha - The Reply = I agree with learned experts. However the loss of tax deposited but not collected from customer may be huge. In case u collected tax without registration but deposited after voluntary registeration the penalty may be huge u/s 76 and oth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section for unauthorised collection of taxes - Reply By KASTURI SETHI - The Reply = SCN can be issued under Section 76 for imposition of penalty equal to the tax evaded, if mala fide intention is proved. - Failure obtaining GST registeration - Query Started By: - vignesh VSACCOUNTOPRIVATELIMITED Dated:- 9-9-2022 Goods and Services Tax - GST - Got 6 Replies - GST - Discussion Forum - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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