ONE TIME REGISTRATION.

[Sadanand Bulbule]

Dear Experts

Following is the question.

Professional consideration received during 2018-19 has exceeded ₹ 20 lakhs which was ignored due to oversight & registration was not taken. Now the person wants take registration voluntarily for the year 2018-19 and desires to pay applicable GST thereon.

During subsequent years, the consideration received is less than threshold limit prescribed for registration.As such continuation of registration is not required.

Kindly clarify how to take voluntary registration for 2018-19 now and pay GST accordingly. Any specific provisions/notifications for such situations may please be highlighted.

[KASTURI SETHI]

There is no such provision for applying for registration retrospectively. The concerned person was required to apply for registration within 30 days from the date of crossing threshold exemption limit. Lapse has occurred for which penalty is imposable. Now apply for registration and pay arrears of tax (2018-19) along with interest and late fee. Registration to be obtained now will continue for the year 19-20. If turnover remains below threshold limit in the current year, you can surrender registration in April, 2020.

[Sadanand Bulbule]

Thank you so much for your quick & fabulous clarification Sirji. 🙏🙏

[KASTURI SETHI]

As Section 122(1) (ix) (xi) of CGST Act, Penalty is ₹ 10,000/- if a person who is liable to be registered under this Act but fails to obtain registration.

Section 73 (8) of CGST Act:- 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 notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.

Above both issues are separate.

[Sadanand Bulbule]

Sir

Thank you so much for further updates on the issue.

AI Summary

Registration requirement cannot be obtained retrospectively; apply now, pay tax arrears with interest, penalty may be waived on prompt payment. There is no provision for retrospective GST registration; the taxpayer must apply now, pay outstanding tax for the prior period with interest and late fee, and may face penalty for failure to register. If proceedings are initiated by show cause notice, payment of tax and interest within the short statutory period can lead to waiver of penalty and closure of proceedings. Registration taken now will continue and can be surrendered if turnover later falls below the threshold.