April 22, 2024

Every taxable individual is required to register under GST, much as how a citizen must have identity to obtain benefits and be recognised as a citizen. Failure to register under GST may result in harsh penalties. For instance, a penalty of Rs. 10,000 or 10% of the tax that was avoided, whichever is higher. If a person purposefully fails to register and is identified as a fraud by the authorities. The penalty could be up to 100% of the tax amount evaded. In addition to the requirement to pay various types of GST, an Input Tax Credit is also a possibility. A person will gain more advantages than a person who does not register and understands how to download a GST certificate.

Also Read: GST Filing

In addition to using the benefit, it is necessary to avoid fines. If you or your business is fined, there may be dire repercussions with a detrimental long-term effect.

Who needs to register for GST?

Under the new regime, any taxable business or individual needs to register for GST. It is easy to enrol in the GST programme. From any location with an internet connection, you can complete it via the GST website. Under the new regime, any taxable business or individual needs to register for GST. You can go to the GST portal and fill out all of the relevant information under the registration tab. Send a few relevant documents’ scanned copies through email as well. And after the authorities have confirmed your identity, your GST registration will be complete. It is critical to become GST registered. Using the list below, you can decide if you need to do this.

How to GST Registration

  • You must register for GST if you supply products and services within the country or export/import.
  • If you were previously registered for taxes such as Service Tax, Excise, or Value Added Tax, you should register.
  • If your firm has a revenue of Rs. 40 lakhs or more, you must register.
  • If you sell things or give paid services online.
  • If you offer digital things like software or SAS, you need to register.
  • You must register if you sell through an e-commerce aggregator.
  • If you live in India and supply goods or services on a regular basis.
  • If your business does not have a physical location in the country but provides goods and services.
  • When you pay taxes using the reverse charge mechanism, instead of the traditional rule of the supplier of services or goods paying the taxes, the receiver is responsible for them.

The importance of GST registration: why?


Consumers and suppliers will naturally regard you as trustworthy if you are a registered individual or a corporation. It demonstrates that you are a trustworthy individual. A corporation or individual that has all of the necessary legal documentation and follows all of the rules and regulations makes a great first impression. It makes it easier to communicate with suppliers and customers with confidence and to build strong business connections.

ITC Advantages:

If they conduct business with GST-registered people and businesses, suppliers can claim Input Tax Credit. In comparison to someone who is not registered for GST, a supplier is more likely to choose you for doing business.

Remove any unnecessary obstacles:

If you are not registered for GST, you may experience certain difficulties. The Goods and Services Tax is implemented in a chain system. From manufacture through supplier to wholesaler to retailer to consumer, a product can be tracked. To prevent any obstacles, everyone in this chain would want to stay GST compliant. If you are not registered for GST as an individual or a firm, the authorities will be able to trace your activities, which may cause difficulties in doing your operation. 

Legal Stability:

If you are GST-registered and a firm or an individual takes legal action against you for whatever reason, you will have legal standing to fight back or defend your position. You cannot be regarded as a genuine business without GST registration, and it could work against you in court.

Avoid Sanctions:

The penalty for a taxable firm or individual who chooses not to register under GST is Rs. 10,000 or the amount equivalent to the tax avoided or the tax liability, whichever is larger, under section 122 of the CGST Act. This also gives authorities a bad picture of your trustworthiness, which could lead to more frequent checks or undesired complications.

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