Criteria and penalties for not registering under GST.

GST registration is compulsory for the businesses earning more than Rs.40 lakh as annual turnover. At the same time it can be optional in some cases.

GST registration is compulsory for businesses earning more than Rs.40 lakh as annual turnover. At the same time, it can be optional in some cases. A rational taxpayer can choose whether to register under GST or not. Failure of GST registration may lead to severe penalties. All the criteria and the consequences are mentioned below in the article. 


GST registration is necessary for all businesses with an annual turnover of Rs.40 lakh or more. Filing a registration form of GST enables the taxpayers to get the advantage of an input tax credit. As per the GST regime, some of the commercial businesses must register themselves under GST and failure of which may lead to paying a heavy penalty. 

Registration can be done offline as well as offline. If anyone is interested in registration online they may consider Legal salaah. Visit their official website and consult with the best professionals for registration under GST. 

What are the requirements for filing and non-filing of GST registration?

There is nothing like non-filing of registration under GST but some of the businesses may get the options of not filing registration under GST. Several reasons make some of the business entities liable for registration as per the GST council. 

Every individual mentioned below are the one who must register themselves under GST:

  • Every single taxpayer who had registered themselves under various taxes like VAT, excise or service tax, when GST was not even implemented. 
  • Non- resident Taxable person of India.
  • Individuals bearing the taxes according to the reverse charge mechanism.
  • E-commerce aggregate, Supplier agents, Input service Distributor.
  • Any business whose annual turnover exceeds the threshold limit of 40 lakh rupees (in case of North-Eastern states, Himachal Pradesh, Jammu and Kashmir and Uttarakhand the threshold limit is Rs.10 lakhs).
  • Any individual indulges in supplies through the e-commerce aggregator.
  • Any individual outside of India transferring the database access and online statistics to the Indians.

Individuals who get the choice for GST Registration Online:

  • Any individual whose threshold limit does not exceed Rs.40 lakhs.
  • Any suppliers dealing with handicraft goods, services or suppliers of job work services with the limited threshold limits.

Penalties in case of not registering under GST:

In India, the taxpayers must have to pay the direct penalty for failure of registration under GST or in case of late registering under GST. According to the CGST Act, if an individual who is required to register under GST fails to register then he would have to pay a penalty amount of Rs.10,000 or evaded tax or short tax liability (whichever is higher). 

Moreover, if taxpayers have not registered themselves under GST and the amount of tax liable is Rs.2 lakh, then he will have to pay the same amount as per the CGST Act. However, other severe consequences that can be encountered have been mentioned below:

If we are unable to register under GST on time

 The taxpayer must have to pay the penalty if he or she is late for the registration. It is so general that the taxpayer will only face the penalty when the officers of the tax department will be unable to catch them. Once the officers catch the taxpayers who are late for the registration, they will have to be liable for the penalty.

If any notice is issued by the tax department in the case of late registration, the taxpayers get the opportunity for applying GST. You can also go for GST Registration Online In this case, the penalty will be the same as discussed above.

Do we need to pay any late fine in case of non-registration of GST

 We all have to pay the late fine in the case, we are late for filing the GST returns. So, it is important to be clear if any person needs to pay a penalty fine in case of being failed for the registration. 

One must know that there is nothing like that. According to section 47, the late fee is not applicable because it is mandatory for the person who is already registered under GST. Here, as the taxpayers are not registered since they would not pay any late fine.

Affecting the Compliance Rating

Compliance rating is another specific concept under the Goods and Services Tax (GST). First of all, you should know that compliance rating is similar to a civil score which helps the taxpayers to increase their creditworthiness. So, the compliance rating can hamper the GST taxpayers in both ways either positive or negative.

Hence, failure in registration or being late for registration will affect the compliance rating of the taxpayer from a negative perspective. 


We have provided all the necessary criteria to be kept in mind for registering under GST and the consequences in case of failure as well. Lastly, we suggest you register under GST in case you are eligible for the same. If you want Online GST registration online must visit Legal Salaah and consult with the best professionals.


Know more about Late Filing of GSTR-1

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I am Surender Kumar, My Highest qualification is LLB from Delhi University, I have 5 years Experience in Accounting and Legal Services. After Successful experience now i have started our Company which Name is Legal Salaah. we Provide all kinds of Business Registration Services in all over India, My hobby is Accounting, writing Articles on business topic and News.

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