Penal provision for not applying for registration:

As per clause (x) in section 66 (1) of the Act, where a taxable person who is liable to be registered under this Act but fails to obtain registration, he shall be liable to a penalty of:

1. Rs. 10,000/- or an amount equivalent to the tax evaded or the tax not deducted or short deducted or deducted but not paid to the Government or

2. input tax credit availed of or passed on or distributed irregularly, or

3. the refund claimed fraudulently,

whichever is higher.