TaxTMI 
TaxTMI 
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
Failure obtaining GST registeration
09 Sep 2022 
6 Replies 
4524 Views Asked by
Failure to obtain GST registration may trigger penalties; voluntary registration and payment before notice can avoid penalties.
Failure to obtain GST registration after crossing the threshold renders transactions unauthorized and attracts tax, interest and penalties, including a fixed penalty for non-registration and possible duplicative state-level penalties. Voluntary registration with payment of tax plus interest before issuance of a show-cause notice can mitigate or avoid penalties under the payment-within-notice-period mechanism. Unauthorized collection of tax from customers creates separate exposure and can lead to penalties equal to tax collected or evaded where mala fides are alleged. (AI Summary)
Failure to obtain GST registration after crossing the threshold renders transactions unauthorized and attracts tax, interest and penalties, including a fixed penalty for non-registration and possible duplicative state-level penalties. Voluntary registration with payment of tax plus interest before issuance of a show-cause notice can mitigate or avoid penalties under the payment-within-notice-period mechanism. Unauthorized collection of tax from customers creates separate exposure and can lead to penalties equal to tax collected or evaded where mala fides are alleged. (AI Summary)