Failure obtaining GST registeration

[VIGNESH]

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

AI Summary

Failing to Register for GST Can Lead to Penalties; Voluntary Compliance May Reduce Fines Under Section 122(1)(xi) A discussion on the consequences of failing to register for GST after exceeding the threshold limit highlights the seriousness of such a lapse, which can lead to unauthorized transactions and multiple penalties. If registration is obtained voluntarily before detection and taxes are paid with interest, authorities may impose a minimal penalty, demonstrating the taxpayer's good faith. Penalties under Section 122(1)(xi) could amount to Rs. 10,000 for non-registration. References are made to Sections 73, 74, and 76 of the CGST Act, emphasizing that timely tax payment can mitigate penalties and conclude proceedings. Unauthorized tax collection without registration may incur significant penalties.