Penalties for Non-Compliance
While there are no GST registration fees, penalties for non-compliance can be significant. Below are the penalties for failing to comply with GST regulations:
- Filing GST returns beyond the deadline incurs a late filing penalty.
- Interest is assessed on the outstanding tax amount when GST liabilities are not paid on time.
- Failure to comply with GST regulations may result in the suspension or cancellation of GST registration.
- If an offender fails to pay tax or makes a short payment, they must pay a penalty of 10% of the tax due (minimum ₹10,000).
- The maximum penalty is 10% of the total tax amount due, plus interest for overdue taxes.
Consequences of Not Registering for GST
The Goods and Service Tax Act of 2017 states that failure to obtain GST registration in India carries a direct penalty. Even late registrations may attract penalties:
- Penalty of ₹10,000 or the amount of tax evaded/short-paid, whichever is higher (Section 122, CGST Act).
- Penalty for not registering may go up to ₹2 lakh or ₹10,000, whichever is higher.
Advantages for Businesses with GST Registration
GST registration offers numerous advantages, establishing legitimacy and ensuring compliance with tax regulations:
- Claim Input Tax Credit (ITC) to reduce overall tax liability.
- Enjoy simplified interstate transactions under a unified tax system.
- Save time with online filing and payment processes.
- Exempt small businesses until turnover crosses the threshold limit.
- Enhance credibility, expand market access, and gain competitive edge.
- Streamline supply chain, gain legal protection, and simplify refund processes.
Common Mistakes to Avoid During GST Registration
Avoid these common mistakes to ensure smooth GST registration and compliance:
- Wrong documentation and poor record-keeping.
- Invoice inaccuracies (wrong GSTIN, numbers, or tax calculation).
- Discrepancies between GSTR-2A and GSTR-3B.
- Unverified GSTIN of suppliers.
- Missing GST return deadlines.
- Inadequate understanding of GST Composition Scheme.
- Ignoring GST notices or compliance requirements.
Different Categories Which Require GST Registration
Below are the categories required to register for GST:
- Education and Learning
- Health and Wellness
- Electricity, Water and Local Services
- Money and Taxes
- Jobs
- Justice, Law and Grievances
- Travel and Tourism
- Business and Self-employed
- Births, Deaths, Marriages and Child Care
- Pension and Benefits
- Transport and Infrastructure
- Citizenship, Visas & Passports
- Agriculture, Rural and Environment
- Science, IT and Communications
- Youth, Sports and Culture
- Essential Government Services during Pandemic
- Art & Culture
- Communication
- Defence
- Home Affairs & Enforcement
Latest Update: 4 September, 2025
The Government has reduced GST on commonly used items. Effective from 22 September 2025, a new two-slab structure (5% and 18%) will be implemented to ease the tax burden and boost economic activity.
| Item Details |
GST Rate Change |
| Hair oil, soaps, shampoos, kitchenware, bicycles, packaged food products |
Reduced to 5% |
| Ultra-pasteurized milk, paneer, Indian breads |
Reduced to 0% (nil GST) |
| Small cars, motorcycles (up to 350cc), three-wheelers, buses |
Reduced from 28% to 18% |
| TVs, dishwashers |
Reduced from 28% to 18% |
| All automotive parts |
Uniform 18% rate |
| 33 life-saving drugs, select cancer medicines |
Reduced to 0% (nil GST) |
| Several other medicines |
Reduced to 5% |
| Individual life and health insurance policies (including family floater & senior citizen plans) |
Exempted from GST |
Get GST Registration Online with Quick Approval
Follow these simple steps to register GST online with Vakilsearch:
- Get in Touch with Our Experts – share your name, phone, and email.
- Expert Consultation – understand your business activity and queries.
- Submit Necessary Documents – provide required GST documents.
- Application Filing – we submit your GST application online.
- Receive Your GSTIN – within 2–6 working days, without office visits.
- Access Kitaab Platform – start GST invoicing and return filing.
GST Return Filing
GST return filing is a mandatory process where taxpayers report sales, purchases, and tax liabilities to the government. Every GST-registered taxpayer must file returns regularly, even if there are no transactions. Timely filing helps avoid penalties. Our experts assist in accurate filing for seamless compliance.