The implications of non registration with GST
Non-registration with GST can have various implications, such as:
If a business is not registered under GST, it cannot collect GST from its customers. This means that the business will have to bear the tax burden on its own, which could impact its profitability.
To visit:https://www.gst.gov.in/
Penalty for non-compliance: If a business require to register under GST but fails to do so, it may be liable to pay a penalty of up to 10% of the tax amount or Rs. 10,000, whichever is higher.
Inability to claim input tax credit: Businesses registered under GST are allowed to claim input tax credit for the GST paid on goods and services purchased for their business. However, if a business is not registered under GST, it cannot claim input tax credit.
Legal consequences: Non-registration with GST is a violation of the law and can lead to legal consequences, such as fines and imprisonment.
Limited business opportunities: Many businesses require their suppliers to be registered under GST. If a business is not registered under GST, it may not be able to participate in certain business opportunities.
Therefore, it is important for businesses that meet the registration threshold to register under GST and comply with its requirements.
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