GST Penalty for Late Registration: Calculate Shagun's Fine

Question 2

LAW STUDIO ASSOCIATES

20 Points Posted on 07 May 2021

(C) Shagun started supply of services in Vasai, Maharashtra from 01.01.2020. Her
turnover exceeded Rs 20 lakh on 25.01.2020. However, she didn’t apply for registration.
Determine the amount of penalty, if any, that may be imposed on Shagun on 31.03.2020,
if the tax evaded by her, as on said date, on account of failure to obtain registration is Rs
1,26,000

Replies (4)

Quick Summary

This discussion addresses a GST registration penalty scenario. Shagun failed to register her services in Vasai, Maharashtra, despite her turnover exceeding the threshold and evading tax. According to Section 122 of the CGST Act, the penalty is the higher of Rs 10,000 or the amount of tax evaded. In Shagun's case, the penalty imposed on 31.03.2020 amounts to Rs 1,26,000, the full extent of her tax evasion.

CA. Sourav Sarkar

Chartered Accountant

20 Points Posted on 07 May 2021

According to the section 122 of CGST Act , any taxable person who fails to register under GST even if he/she is legally bound as per the GST Act needs to pay the following amount of penalty: 10,000 INR or amount of tax evaded whichever is higher.

Therefore the penalty will be 126000 rupees