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Gst registration

Angel (Associate) (31 Points)

17 June 2018

The client has not taken Gst registration for FY 2017-18 as it was believed that his turnover will not exceed 20 Lakhs .If the turnover during Financial Year 2017-18 exceeds 20 lakh rupees,whether gst is applicable in fy 2017-18 .If yes,then on which amount -above 20 lakhs or whole turnover??

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7 Replies

Jatin (Accountant) (3479 Points)
Replied 17 June 2018

You can take registration immediately.

You are liable to pay penalty for GST registration not taken timely.

Kalpesh (Chartered Accountant) (349 Points)
Replied 17 June 2018

GST Registration is required to be taken within 30 days of crossing of limit of Rs. 20 Lac.

And once you get registered under GST, GST shall be applicable on every supply made after date of registration.

Hope this shall help.

1 Like

prasad Nilugal ( GST Practitioner & Accounts ) (14916 Points)
Replied 17 June 2018

As per section 122 (xi) of the CGST act 2017 penalty of RS 10,000/- or an amount equivalent to the tax evaded , which is higher . Fails to obtian registration .

1 Like

Jatin (Accountant) (3479 Points)
Replied 17 June 2018

Can franchisee avail benefit of threshold limit Rs. 20 Lac or take compulsory registration

EazyTaxIndia (Tax Consultants) (51 Points)
Replied 17 June 2018

Liability To Register under GST Act

As per Goods & Service Tax Act 2017 any person whose turnover crosses Rs. 20 Lacs (Rs. 10 Lacs in some states) in aggregate must apply for GST Registration within 30 days from crossing such the threshold limit.

Failure to register for GST within the due time period of 30 days, then you are not actually eligible to charge your customer or clients on GST. It also restricts you from the right of claiming any input tax credit of the GST paid by you.

Also, where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of grant of registration.

But, there can be the following consequences of non-registration within the fixed due time-

Penalty of Rs. 10,000/- or Tax due - whichever is high
Non eligible for Input Tax Credit
Non eligible for issue of Tax Invoice
Non eligible for Transfer of Input Tax Credit
Detention of Goods & Conveyance
Confiscation of Goods
Confiscation of Conveyances

So, it is advised to get your business registered within the due time of 30 days.

Hence, in your case if your client fails to take GST registration and the total tax liability after calculation comes to Rs.2 lakh, then the penalty for failure to take GST registration shall be 2 lakh or Rs.10,000 whichever is higher and hence, Rs.2 lakh shall be levied.

Penalty in case of late GST registration

As a general rule, the penalty is levied once the person is caught by the tax department. In case of late registration, if the taxpayer is not caught by the department, then the penalty might not be levied.

However, if the department issues you a notice you might be in a better position to apply for condonation as you have voluntarily complied with the provisions of the act. If the department have rejected your request then, in that case, penalty, as described above, must be paid.

Applicability of late fees on late GST Returns filing?

This is also one of the most important questions as to whether the late fees which are levied for late filing of GST return shall also apply where a person fails to take GST registration.

Though as per the provisions, The Late fees under section 47 shall not apply because it is applied only in case of a registered person and in our case since the person is not registered person, the system automatically calculates the late fees and charges the same in the upcoming returns. One small relief is that GSTR 1 late filing fees is not automatically calculated by the system.

This Late fee may be cost up to Rs. 200/- per day from the date of due for filing to the date of actual filing of returns.

For any further information regarding GST Registration and GST Returns filing please feel free to locate us at https://www.eazytaxindia.com/ . We are one of the top GST Registration Consultants.