GST Registration Fees for Sole Proprietorship
The process of registering under GST is known as GST registration. The application is made through the Form GST REG-01 on the common portal. The government does not charge any GST Registration Fees for Sole Proprietorship, Partnership, or any other entity.
Penalties are involved in case of failure to take GST registration or late registration. A GST registration can be obtained without incurring any expenses in case you have knowledge about Goods and Service tax.
However, if you take professionals services, you need to pay them. Registration can be made online on the GST website from any place.
Can I enroll in GST myself?
A taxpayer can register himself by the following steps.
Step 1: Go to the GST portal.
Step 2: Then Services > Registration > New Registration
The form that appears is Part A of GST REG-1. After submitting Part A, a Temporary reference number will be generated.
Step 3: Part B of the form will be filled by entering the TRN number and adding the subsequent details later on. To read about the complete registration process.
GST registration fees charged by a professional (CA)?
The amount charged by the professional would depend upon the following factors.
- Nature and Size of Business
- The complexity and time took for such an assignment
The bigger the size of the business would require more time to research. Hence, the amount will be high in this case. The amount would be high for companies, while a nominal amount may be charged for small proprietors.
However many taxpayers forget to file their returns after taking GST registration. And pay a heavy amount of late fees later on.
Penalties on delayed GST Application or failure to enroll in GST
Penalties in GST are dealt with under Section 122 of the CGST Act 2017.
The penalty for obtaining registration or obtaining late registration can attract a penalty of Rs. 10,000 or equal to the amount of tax involved whichever is higher.
Hence, if a person fails to obtain registration and total tax liability arising on account of failure comes to Rs. 50,000, then the penalty shall be higher of Rs. 50,000 or Rs. 10,000 whichever is higher.
Whether the late fees will be levied on such registration?
The late fee is levied when returns are not filled before the due date. Taking late registration would not impact the late fees involved. How can late fees be levied when there is no registration?
Frequently Asked Questions
Government of India does not charges any application fees or any transaction fees for GST registration. It is free of cost.
However, the professional who is registering you in GST might charge fees.
The reason why we are saying this is although, you might be able to self enroll yourself in GST. The problem will arise when a show-cause notice would be issued.
Another problem would be you will forget to file GST returns which are mandatory. Hence, unnecessary late fees would be levied.
And if you failed to file returns for six months after GST registration, registration would be cancelled by the officer.
Akash Arora is a Chartered Accountant. His domain areas include Indirect Tax (GST), Direct tax, Internal Auditing as well as Statutory Auditing. He is a business advisor to FMCG, Construction, and Automobile Entities all over India. Feel Free To Contact Him. 🙂