Not filing GST returns results in mandatory late fees of ₹50 per day (₹25 CGST + ₹25 SGST) or ₹20/day for Nil returns, up to a maximum of ₹5,000. Further consequences include 18% annual interest on unpaid tax, loss of input tax credit, blocking of e-way bills, possible cancellation of registration, and potential legal action.
Therefore, upon non –filing of GST returns or missing out the GST due dates, the GST law prescribes a general penalty. The maximum penalty that may be imposed is Rs. 5,000. The taxpayer will be required to pay interest on late payment of GST at a rate of 18% annually in addition to the late payment penalty.
If you don't file GST, you will be liable to pay a penalty, and the amount of the penalty depends on the duration of the delay. The penalty for not filing GST returns is Rs. 50 per day for each return that has not been filed, subject to a maximum of Rs. 5,000.
A penalty of Rs. 10,000 or 10% of the tax due, whichever is higher, for not registering despite being liable to do so. A penalty of Rs. 10,000 or the tax amount, whichever is higher, for collecting GST but not depositing it to the government within three months.
The GST law requires that every claim for refund is to be filed within 2 years from the relevant date.
If you don't register for GST and are required to, you may have to pay GST on sales made since the date you were required to register. This could happen even if you didn't include GST in the price of those sales. You may also have to pay penalties and interest.
GST return filing is mandatory even if there's no transaction during the period (NIL return). Important: You cannot file the current return if the previous return is pending. Late filing attracts interest & late fees, impacting compliance.
If your GST turnover is below the $75,000 threshold, you may choose to register. But if you do, regardless of your turnover, you must: include GST in the price of most goods and services you sell. claim GST credits for most business purchases you make.
What is the Minimum Turnover Limit for GST Registration? Businesses are required to register for GST and pay tax on their annual turnover if their annual revenue exceeds Rs. 40 lakhs in the case of goods supplied and Rs. 20 lakhs for the supply of services.
Under the GST law, penalty for late filing of GST returns include a late fee of Rs. 50 per day (Rs. 25 each under CGST and SGST) for delayed return filing, capped at Rs. 5,000, and an interest rate of 18% per annum on outstanding tax amounts.
If you're required to register and fail to do so, you may have to pay GST on all sales made since the date you should have registered, even if you didn't charge GST to your customers. On top of that, you might face hefty fines, penalties, and interest, or even get hit with an audit.
GST registrants who obtained or held registration anytime during a given financial year are required to file annual return for the said financial year.
7. Final Checklist to Avoid GST Penalties in 2025
When can the GSTIN get suspended? A taxpayer's GST registration or GSTIN can be suspended when they fail to file their GST returns for six consecutive months as monthly filers and for two consecutive quarters as quarterly filers.
The answer lies in the name itself; the taxpayers who fail to file GST returns on time or do not file at all can be called the 'Defaulting Suppliers' or 'GST defaulter'. Such Suppliers can be a problem to your business chain and can cause blocking of your cash flow as well.
As most people who are self-employed, freelance, or running a business in Canada, there is an income limit below which you don't have to be registered for the GST/HST. That limit, known as the Small Supplier Threshold, is $30,000 per year (specifically: in four consecutive calendar quarters).
Answer: If turnover of the entity is less than the limit of Rs. 20 lakhs in a financial year, no tax would be payable. The exemption from payment of tax is applicable to services provided to a business entity having a turnover up to Rs. 20 lakh rupees.
If you don't include GST in a consumer price – or you hide it in the fine print – you risk misleading customers. Two ACL provisions to keep in mind are Section 18 of the Australian Consumer Law (misleading or deceptive conduct) and Section 29 (false or misleading representations about price).
Annual GST/HST Filers (Individuals with December 31 fiscal year-ends) For sole proprietors who are annual GST/HST filers and have a December 31 year-end, the deadline for filing your GST/HST return is June 15. If you owe GST/HST, the balance owed is April 30.
If you fail to register once you've crossed the threshold, the ATO can charge you: Backdated GST on past sales (even if you didn't charge customers) Interest and penalties.
In conclusion, the minimum GST registration limit for mandatory GST registration in India is Rs. 40 lakh for most businesses, with a lower threshold limit for GST registration of Rs. 10 lakh applicable in special category states.
You can back date your GST registration up to 4 years dependent on the start date of your ABN registration. You will need to lodge the BAS or annual GST statements for this backdated period. You will also need to pay GST on taxable supplies made.
GST Exemption Limit
Under the Goods and Services Tax (GST) regime in India, businesses whose annual revenue exceeds specific thresholds are required to register and pay GST. Currently, the GST Exemption Limit is set at Rs. 40 lakhs for goods and Rs. 20 lakhs for services.
If you're a sole trader, and you estimate you'll earn $75,000+ in a 12-month period in self-employed income, you are required to register for and charge GST on your goods and services.