Question22: One of my client has cross
his threshold limit in the month of November 2017 but he has not got registered
in GST while his business is continue till now. Now he want to take registration
in GST. What would be the obligations & penalty on late registration'
Answer: According to Section 18(1)(a) If the registration in GST are
taken after 30 days from the date on which liable to get registration then you
are not eligible for credit in respect of input and input contained in
semi-finished or finished goods held in stock.on the day immediately preceding
the date from which you becomes liable to pay tax under the provisions of this
Act.
Effective date of registration in this situation shall be the date of grant of
registration certificate. Thus You can collect GST and issue GST invoice only
after getting your registration certificate and can claim ITC on purchases made
only after getting registration certificate.
If the person is caught for this default their will be a penalty under section
122 i.e
Rs 10000 or
An amount equivalent to the tax evaded,
whichever is higher. (Reply dt. 12/3/2018)