Non payment of GST penalty.

[Satyen Rohit]

Hello Sir,

What happens if I don't pay penalty on late filing of gst as I have no income and my business is shut down?

[KASTURI SETHI]

Registration certificate is cancelled only after the realization of all Govt. dues. Penalty also falls in the category of 'Govt. dues'. The department has so many legal ways and means to recover the dues. That is why bank account details are obtained while applying for registration.

[Ganeshan Kalyani]

If the GSTIN is active then filing of GST returns becomes compulsory. It does not matter if the return is a NIL return. Was there any specific reason for not filing the returns?

[KASTURI SETHI]

Return has to be filed even if there is no transaction. NIL return has to be filed by due date.

AI Summary

Failure to Pay GST Penalty: Dues Must Be Cleared Before Canceling Registration; Filing Returns Mandatory if GSTIN Active. A user inquired about the consequences of not paying a GST penalty due to having no income and a closed business. Respondents explained that government dues, including penalties, must be settled before a registration certificate can be canceled. They noted that the government has various methods to recover these dues, including using bank account details from registration applications. It was also emphasized that filing GST returns is mandatory if the GSTIN is active, even if the returns are NIL due to no transactions.