Frequent UPI User? High-Value Transactor? You might need a GST Registration

Businesses under the Goods and Services Tax (GST) regime are mandatorily required to register themselves with the GST system to comply with the laws pertaining to indirect taxation on the supply of goods and services in India.

Registered entities shall be assigned a unique 15-digit Number (GSTIN), enabling them to collect and remit GST to the government during the course of their business.

Read More: Index on GST Registration

The GST Department plays watchdog, monitoring business’ financial transactions - be it via bank transfers, UPI, credit cards or any other financial instruments to ensure strict compliance with the operative tax statutes.

Recent news indicating the issuance of GST notices towards generally unlikely entities, reinforces the immense scrutiny that tax authorities have on financial transactions in the nation. If you are a business entity and your transactions through banking channels cross the threshold limit of Rs. 20 Lakh in a financial year, you may be required to undertake GST registration.

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Alternatively, suppliers involved solely in the supply of goods may receive exemption from mandatory GST registration if they accrue turnover of up to Rs. 40 Lakhs in a financial year.

Suppliers of goods and/or services whose annual turnover crosses the threshold limit and continues to conduct business without GST registration  are deemed to have conducted offences encompassed under Section 122(1)(xi) of the Central Goods and Services Tax Act, 2017 and concurrent state GST Acts.

Offenders may be required to pay a penalty amount of rupees ten thousand or ten percent of the amount equivalent to the tax evaded or tax or not duly deducted.

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