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Penalty for Not Registering or Late Registering Under GST

Masters India Free Intermediate India

Spells out the actual cost of treating GST as optional: the penalty math under Section 122, the 18% interest clock, and the goods detention risk a founder should price into any 'wait and see' decision.

• The penalty for failing to register when required is the higher of Rs 10,000 or 10% of the tax due.
• Late registration carries the same penalty structure, the higher of Rs 10,000 or the tax evaded.
• Consequences beyond the fine include loss of Input Tax Credit eligibility and the risk of goods or vehicles being detained or confiscated.