If you are liable to register and do not, the cost climbs fast under Section 122 of the CGST Act, 2017. Acting before the department issues a notice is the difference between a small penalty and a large one.
| Offence | Penalty | Cap |
|---|---|---|
| Failure to register when liable | ?10,000 or the tax due, whichever is higher | No cap |
| Collecting GST without registration | 100% of tax collected + interest | No cap |
| Tax evasion or fraud | 100% of tax due (minimum ?10,000) | No cap |
| Genuine error / short payment | 10% of tax due (minimum ?10,000) | No cap |
| Late filing of a return with tax liability | ?50/day (?25 CGST + ?25 SGST) | Turnover-slabbed (commonly ?5,000/return) |
| Late filing of GSTR-9 (annual return) | ?200/day (?100 CGST + ?100 SGST) | 0.25% of state turnover |
Already past the deadline? Our team files the voluntary disclosure (Form GST DRC-03) and represents you at the officer hearing if needed.
GST registration and GST return filing are distinct compliance requirements that business owners often confuse. Registration is a one-time process of obtaining a GSTIN, while return filing is the ongoing periodic obligation to report transactions to the government.
| Parameter | GST Registration | GST Return Filing |
|---|---|---|
| Nature | One-time process | Recurring obligation (monthly/quarterly) |
| When required | Before commencing taxable supply | From the date of registration, every month/quarter |
| Key forms | REG-01 (application) | GSTR-1 (sales), GSTR-3B (summary), GSTR-9 (annual) |
| Penalty for non-compliance | ?10,000 or tax due, whichever is higher | ?50/day (CGST) + ?50/day (SGST), max ?10,000 per return |
| Can be done voluntarily | Yes, under Section 25(3) | Not applicable — mandatory once registered |
Moving offices, adding a partner, or changing the bank account? You file Form REG-14, and the portal splits changes into core and non-core fields.
| Field Type | Examples | Approval | Timeline |
|---|---|---|---|
| Core fields | Legal name, principal place of business, add/remove partners or directors | GST officer approval needed | Within 15 working days |
| Non-core fields | Mobile, email, bank account, additional place of business | Auto-approved | Immediate |
Shutting the business, dropping below the threshold, or restructuring? Cancellation must be done properly, or late-filing notices keep arriving for a GSTIN you no longer use.
| Type | Initiated By | Reason | Form |
|---|---|---|---|
| Voluntary cancellation | Taxpayer | Closure, turnover below threshold, change in structure | Form GST REG-16 |
| Officer-initiated cancellation | GST officer | Non-filing of returns, fraud, business not commenced | REG-17 ? REG-19 (order) |
| Revocation of cancellation | Taxpayer | Restore an officer-cancelled registration within 90 days of the order | Form GST REG-21 |
Once the GST Cancellation order is issued, the final return (GSTR-10) must be filed within 3 months.