Any taxable individual must register under GST, just as any citizen of the country must have identity in order to get benefits and be recognised as such. Failure to register under GST may result in harsh penalties. If a person intentionally fails to register and is caught by authorities as a fraud. The penalty could be up to 100% of the tax amount evaded. Different sorts of GST must be paid, and with the option of Input Tax Credit. Someone who registers and understands how to download a GST certificate has an edge over someone who does not.

Also Read: GST Consultancy Services

It is critical not only to take advantage of the benefit, but also to avoid fines. If you or your firm is punished, there might be substantial ramifications with long-term effects.

Who needs to register for GST?

Under the new regime, any taxable business or individual needs to register for GST. Enrolling for GST is a simple procedure. It can be done from any location with an internet connection via the GST website. Under the new regime, any taxable business or individual needs to register for GST. You can go to the GST portal and fill out all of the relevant information under the registration tab. As well as send scanned copies of a few required papers, and your GST registration will be complete once the authorities verify your identity. It is vital to register for GST, and the list below will assist you in determining whether you need to do so.

  • You must register for GST if you supply products and services within the country or export/import.
  • If you were previously registered for taxes such as Service Tax, Excise Tax, or Value Added Tax, you should register again.If your firm has a revenue of Rs. 40 lakhs or more, you must register.
  • If you sell things or give paid services online.
  • If you offer digital things like software or SAS, you need to register.
  • You must register if you sell through an e-commerce aggregator.
  • If you live in India and supply goods or services on a regular basis.
  • If your company sells goods and services but does not have a physical presence in the country.
  • Instead of the typical rule of the supplier of services or goods paying the taxes, you pay taxes utilising the reverse charge technique. The receiver is responsible for them.

Why is GST registration so important?

  • Credibility: Consumers and suppliers will naturally regard you as trustworthy if you are a registered individual or a corporation. It demonstrates that you are a trustworthy individual. A corporation or individual that has all of the necessary legal documentation and follows all of the rules and regulations makes a great first impression. It makes it easier to communicate with suppliers and customers with confidence and to build strong business connections.
  • ITC Advantages: If they conduct business with GST-registered people and businesses, suppliers can claim Input Tax Credit. In comparison to someone who has not registered for GST. A supplier is more likely to choose you for doing business.
  • Remove any unnecessary obstacles: If you are not registered for GST, you may face some challenges. A chain system is used to implement the Goods and Services Tax. A product can be tracked from manufacture to supplier to wholesaler to retailer to consumer. To prevent any obstacles, everyone in this chain would want to stay GST compliant. If you are not a GST-registered individual or business. The authorities will be able to trace your activities, which may cause difficulties in doing your operation. 
  • Legal Stability: If a firm or individual takes legal action against you because you are GST-registered. You will have legal standing to fight back or defend your position. You cannot be regarded as a genuine business without GST registration, and it could work against you in court.
  • Avoid Sanctions: The penalty for a taxable firm or individual who chooses not to register under GST is Rs. 10,000 or the amount equivalent to the tax avoided or the tax liability, whichever is larger, under section 122 of the CGST Act. This also gives authorities a bad picture of your trustworthiness, which could lead to more frequent checks or undesired complications.