A:
If you’re required to register under GST and fail to do so, the law imposes a penalty to discourage non-compliance. Here’s what you need to know:

• Penalty Provision:
  Under the CGST Act, if you do not register within the prescribed time, you may face a penalty. This penalty is generally calculated as a percentage of the tax that should have been collected on your turnover. In practice, it is often around 10% of the tax due on the turnover that required registration, with a minimum penalty amount prescribed by the authorities.

• Additional Charges:
  Along with the penalty, interest may be charged on the unpaid tax amount until you complete your registration and clear the outstanding dues.

• Importance of Timely Registration:
  Registering on time not only helps you avoid these financial penalties and interest but also ensures that you can avail input tax credits and comply with other GST compliance requirements.

Reverse charge is a mechanism under the Goods and Services Tax (GST) system where the responsibility for paying GST shifts from the supplier to the recipient. This means that instead of the seller collecting the tax from the buyer, the buyer is required to pay the GST directly to the government.

Key Points:

• Liability Shift:
  Under the reverse charge mechanism (RCM), if you are the recipient of certain specified goods or services, you must pay the applicable GST even if the supplier does not charge it.

• Applicable Situations:
  Reverse charge is applicable in specific cases mandated by the GST law. This can include:

  • Certain categories of goods and services notified by the government.

  • Supplies from unregistered persons where the recipient is registered.

  • Transactions involving government departments or agencies.

• Relevant Provisions:
  The provisions for reverse charge are primarily found in the GST Acts (both CGST and IGST), which outline the circumstances and conditions under which RCM applies.

• Compliance:
  As a recipient, if you fall under the reverse charge mechanism, you must:

  • Pay the GST on the purchase.

  • Ensure proper accounting and reporting in your GST returns.

  • Claim input tax credit (if eligible) on the tax paid under reverse charge.

If your GST registration has been cancelled—either voluntarily or by the tax authorities—you may have the option to restore it if your business operations have resumed. Here’s a quick guide on how to do that:

Step 1: Check the Cancellation Status and Time Limit

• If your registration was cancelled and you wish to resume your business, you need to check whether you’re still within the allowed window for restoration.

• Typically, you can apply for restoration within a prescribed period (usually within 30 days from the cancellation date). If you miss this window, you might have to register as a new taxpayer.

Step 2: Log In to the GST Portal

• Visit the official GST portal and log in using your credentials.

Step 3: Submit an Application for Restoration

• Navigate to the registration section and look for the option to “Restore Registration” or “Resume Registration.”

• Complete the application form, providing all the required details and the reason for restoration (such as resumption of business).

Step 4: File All Pending Returns and Clear Outstanding Dues

• Ensure that any pending GST returns are filed.

• Settle any outstanding taxes or interest to avoid complications during the restoration process.

Step 5: Await Approval

• After submitting your application, the GST authorities will review your request.

• If approved, your GST registration will be restored, and you can continue with your business activities under the same GSTIN.