in News Articles March 18, 2020 – 11:31 am 1 Comment 3,482 Views
It is as essential for any taxable individual to get registered under GST as any citizen of the country needs to have an identity proof to avail the benefits and to be recognized as a citizen. By not registering under GST, there could be severe penalties such as a person who fails to register will have to pay an amount equal to 10% of the tax evaded or Rs.10,000, which is higher. If an individual doesn’t register deliberately and comes under the scanner of authorities as a fraud, then the penalty could be as high as 100%of the tax amount evaded. Different types of GST need to be paid, and with the option of Input Tax Credit, it is more beneficial for someone to get registered and to know how to download a GST certificate than compared to someone who doesn’t register under GST.
It is essential not just to avail of the benefit but also to avoid penalties. Once there are penalties levied on you as an individual or your business, there could be severe repercussions that could have a lasting negative effect.
In the GST regime, any taxable business or individual should get registered under GST. It is a simple process to get registered under GST. It can be done through the GST portal from anywhere with just access to the internet. To register under GST is, in itself, a straightforward process. You can visit the GST portal, and under the registration tab, enter all the required details, submit scanned copies of few essential documents that are required, and once the authorities authenticate your identity, your registration under GST will be complete. It is vital to get yourself registered under GST and to know whether you are liable to get registered, check the list below.
Credibility: If you are a registered individual or a business, then there will be natural trustworthiness towards you from consumers and suppliers. It shows that you are someone who can be trusted. A company or an individual that has all the legal documents and who are compliant with the rules and regulations create a tremendously positive impression. It helps in reaching out to suppliers and consumers with confidence and also helps build good business relations.
Benefit Of ITC: With the option of Input Tax Credit, suppliers claim ITC if they do business with GST registered individuals and companies. It is more likely that a supplier could choose you for doing business compared to someone who is unregistered under GST.
Avoid Unnecessary Hurdles: There could be some hurdles you may face if you are not registered under GST. The way Goods and Services Tax regime works is through a chain system. A product can be tracked from manufacturing to supplier to wholesaler to retailer, finally the consumer. And in this chain, everyone would want to remain GST compliant to avoid any hurdles. If you, as an individual or your business is not registered under GST, the authorities can track your activities, and this could create obstacles for you in conducting your business.
Legal Strength: If you are registered under GST and, if a business or an individual, for some reason, takes legal action against you, you will have legal strength to fight back or defend your position. Without the GST registration, you cannot be considered as a legitimate business, and it could work against you in the court of law.
Avoid Penalties: The penalty for someone who is a taxable business or individual and chooses not to register under GST, then according to section 122 of the CGST Act, they can attract a penalty of Rs. 10,000 or the amount equivalent to the tax evaded or the tax liability whichever is higher. This also creates a negative impression on authorities about your trustworthiness, which could attract frequent checks, or there might be some unwanted issues that may arise.
Losses may occur: Authorities can confiscate your Goods if you are not registered under GST. According to Section 130 of the CGST/SGST Act, products become liable to be seized if a taxable business or individual is found to not registered under GST. In a corporation, when Goods are confiscated, then it could be a huge loss because there could be damage to the goods that are seized. There could be a loss of products or the time until the goods are confiscated. There is no profit earned on those goods, and you will not be able to produce or supply any goods until your issues with the confiscation are resolved. This can create a significant loss. A tax officer has the power to break open the door of the premises where the goods are kept. The officer can break open the unit, such as almirah, cupboard, container, or any other such unit that contains Goods that are to be confiscated. With the confiscation of Goods, a more significant loss could be when you are not able to recover the goods altogether. In such a situation, there will be a total loss to your business.
Business Shutdown: If you are not registered under GST, and if your goods are confiscated, or if there are hefty penalties levied on your business, then there might be the risk of shutting down the business. Because sometimes the seized products cannot be recovered. Sometimes the penalties that are charged might be more than the total value of profits. There could be different ways in which a business gets affected negatively, and it could lead to shutting down of business altogether.
The process of registration is straightforward. The GST portal is intuitive, and you will not need any assistance to get yourself registered or to know how to download a GST certificate. It provides complete details about the types of GST and the different returns you should file under GST.
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Tagged with: E-commerce GST GST Portal GST Registration ITC
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As Santa Clarita’s only local radio station, KHTS FM 98.1 & AM 1220 mixes in a combination of news, traffic, sports, along with your favorite adult contemporary hits by artists such as Rob Thomas, Taylor Swift, Katy Perry and Maroon 5. We are vibrant member of the Santa Clarita community. Our broadcast signal reaches all of the Santa Clarita Valley and parts of the high desert communities located in the Antelope Valley. We stream our talk shows over the web, reaching a potentially worldwide audience.