Goods and Services Tax (GST) registration is a mandatory process for businesses exceeding a certain turnover threshold. While the government process itself is free, understanding the total costs, including professional fees and potential penalties, is crucial for compliance. This detailed guide breaks down everything a business owner needs to know.
Is There Any Government Fee for GST Registration?
GST Registration in India is **free of charge** when applied for directly through the official GST Portal (www.gst.gov.in). The government imposes no official fee for the registration process itself. However, businesses often incur costs when hiring professionals, such as Chartered Accountants (CAs) or Tax Consultants, to assist with the application, documentation, and follow-up to ensure error-free and timely registration.
GST Registration Fees Charged by Professionals (CAs/Consultants)
The professional fee for GST registration varies widely based on the complexity of the business structure (Proprietorship vs. Company) and the region. Typical charges range as follows:
| Service Type | Professional Fee (Estimated) |
|---|---|
| Simple GST Registration (Proprietorship) | ₹1,000 to ₹3,000 |
| Complex GST Registration (Pvt Ltd/LLP) | ₹2,500 to ₹5,000 |
| GST Return Filing (Monthly/Quarterly) | ₹1,000 to ₹5,000 per return |
Penalties for Non-Compliance and Late Filing
Failing to register when required or missing filing deadlines can result in significant financial penalties. The major penalties include:
- **Failure to Register:** A penalty of 10% of the tax due, with a minimum penalty of ₹10,000.
- **Intentional Tax Evasion/Fraud:** For cases involving deliberate tax evasion, the penalty is significantly higher, reaching 100% of the unpaid tax amount.
- **Late Filing Fees:** Daily fines apply for late submission of GSTR-3B and GSTR-1, which can quickly accumulate.