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Unfortunately, you are not alone in this situation and many consultants out there also don't give proper information and this results in this type of scenarios. If you are just testing waters and don't know whether your business will take off or not you should not register for GST at all.
The best thing is to go for simple registrations like P...
Wazzeer Professional Network
ProfessionalInquiry regarding GST penalty on a business which didn't started
Hello Sir, Came through your mail id through a post in quora. I need a help in understanding a GST scenario. It would be great if you can help on it. I had planned to start a service providing business and registered GST in Aug 2017. However later I decided to stick to job and finally didn't started the business itself. However I was not aware of cancelling GST or filling Nil as return. Recently I have got a notice from GST Commissioner that I need to pay penalty. While filling return for Oct 2017, it is asking for late fees of Rs 1800 for October itself. Called GST helpline and they told that I need to pay late fees from Oct to till date and after filling return for October and paying late fees I would come to know my late fees for November and so on till May. Please suggest if anything can be done to avoid this amount as I didn't started my business itself. Thanks in advance. Regards Rohit Bangalore
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Wazzeer Professional Network
ProfessionalUnfortunately, you are not alone in this situation and many consultants out there also don't give proper information and this results in this type of scenarios. If you are just testing waters and don't know whether your business will take off or not you should not register for GST at all.
The best thing is to go for simple registrations like PT Enrollment and MSME registrations. These though may sound costly initially because of Govt. fees involved does not involve any filings and if you don't file any returns there won't be a penalty.
But GST is not one such registration. Once you take the registration you will have to do compulsory monthly returns filing. Even if there are no business transactions, you should file nill returns. If you fail to do so, you will have to pay a penalty of Rs.20 per day of late filing in case of nill returns and Rs.50 per day in case there are transactions, in addition to 1.5% interest per month on outstanding GST amount
almost 4 years ago
View answer
Inquiry regarding GST penalty on a business which didn't started
Hello Sir, Came through your mail id through a post in quora. I need a help in understanding a GST scenario. It would be great if you can help on it. I had planned to start a service providing business and registered GST in Aug 2017. However later I decided to stick to job and finally didn't started the business itself. However I was not aware of cancelling GST or filling Nil as return. Recently I have got a notice from GST Commissioner that I need to pay penalty. While filling return for Oct 2017, it is asking for late fees of Rs 1800 for October itself. Called GST helpline and they told that I need to pay late fees from Oct to till date and after filling return for October and paying late fees I would come to know my late fees for November and so on till May. Please suggest if anything can be done to avoid this amount as I didn't started my business itself. Thanks in advance. Regards Rohit Bangalore
-
Wazzeer Professional Network
ProfessionalUnfortunately, you are not alone in this situation and many consultants out there also don't give proper information and this results in this type of scenarios. If you are just testing waters and don't know whether your business will take off or not you should not register for GST at all.
The best thing is to go for simple registrations like PT Enrollment and MSME registrations. These though may sound costly initially because of Govt. fees involved does not involve any filings and if you don't file any returns there won't be a penalty.
But GST is not one such registration. Once you take the registration you will have to do compulsory monthly returns filing. Even if there are no business transactions, you should file nill returns. If you fail to do so, you will have to pay a penalty of Rs.20 per day of late filing in case of nill returns and Rs.50 per day in case there are transactions, in addition to 1.5% interest per month on outstanding GST amount
almost 4 years ago
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