Registration under Central Goods & Service Tax Act (CGST Act) is governed by the provisions of section 22 and 24. Section 22 deals with the registration of suppliers of goods and/or services who are doing a sizeable business in a financial year.

According to section 22, every person whose aggregate turnover in respect of supplies of all goods and services made by him in a financial year exceeds the threshold limit of Rs.20 Lacs (Rs.10 Lacs in case of business activities are in North East States and Hilly Areas), will be liable for the registration in the said Act in each of the states and union territories (UT) in which he has some business activities.

Please note that the main purpose of charging section, that is section 22 of CGST Act, is to make all the large businesses liable for the registration under the act. Hence section 22 does not make any difference in taxable supply or exempt supply or zero rated supply or even non taxable supply while calculating the aggregate turnover of the person. By the same logic, section 22 takes into consideration all the supplies made by the person in all the states and UTs.

Section 22 is a general section which mandates the registration for every taxable person if threshold limit is crossed. However, there is another section 24 which mandates the registration for some specific class of persons even without reaching the threshold limit, i.e., Compulsory Registration

According to section 24, it is mandatory for the following class of persons to take the registration, without even checking for their threshold limit:

1. Any person making inter state supply

2. Casual Taxable person making taxable supply

3. Non-Resident taxable person making taxable supply

4. Any person who is required to pay GST under reverse charge under any provision of the act

5. An Input Service Distributor (ISD)

6. E-Commerce Operator in respect of specified services u/s 9(5) if those services are supplied by the actual service provider through that E-Commerce operator. For those specified services, actual service provider would not be liable to pay GST, hence he would not even require to take the registration in respect of those services

7. Every E-Commerce Operator. Please note that e-commere operators through a e-commerce platform serve as a mediator between buyer and seller, e.g. Flipkart or Amazon. Therefore any company who is selling its own products through its own website would not be covered under e-commerce operator, e.g. Titan which sells its watches through its own website. Such players would be required to get the registration u/s 22, after reaching the threshold limit

8. Any person who is supplying goods and/or services, except those services which are specified u/s 9(5), through such an E-Commerce operator who is required to collect TCS u/s 52

9. Any person who is required to deduct TDS u/s 51. Generally, these persons are govt. agencies/departments/local authorities which deduct TDS while making payment to supplier of goods and/or services if the value of that supply is more than Rs.2.5 Lacs

10. Any person who is supplying goods and/or services on behalf of any other taxable person (whether registered or not) whether as an agent or otherwise

11. Every person supplying online information (e.g. Netflix) and database access or retrieval services from a place outside India to a person in India, other than a registered person

12. Every other notified person in this behalf by the government.

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10 responses to “Registration under GST”

  1. Rajkumar says:

    Sir,
    My friend is a service provider and has a turnover of about 3 lacks from office and below 1 lack from his own website and over all total below 4 lacks.. Please inform me whether he requires to register in GST because he has online presence through his own website.

  2. Alkesh says:

    Deducting the TDS amount from payment of Transporter, service provider, employee salary….,in this case is required to Separate registration as TDS deducter? is required to file GSTR-7? We have we have Complited Migration process.

    • sumitaggarwal says:

      Hi Alkesh, if you are govt agency or govt dept and require to deduct TDS u/s 51 of CGST Act, only then you are required to file GSTR 7 otherwise not

      In case of any further query, you can connect with me at aggarwal.sumit194@gmail.com

  3. Ajay Prem Kaushal Pareek says:

    We are a GTA head office in Jaipur with transport contracts operating at various places in India including J&K basically hiring trucks from respective markets through our branches (none is registered there) and supplying to various contracted parties.We are Maintaining all accounts in Jaipur , All billing is done from Jaipur . Service tax return is also filed from Jaipur. How we have to get register/Migrate ourself under new regime ?

    • sumitaggarwal says:

      Hi Ajay, in the states situation, first you need to get migrated from service tax to gst and then you would be required to take registration in each of the states in which you have branches. Separate accounts will now onwards will be maintained at all those branches and separate returns would be filed. Even inter branch transactions would be accounted for as if both are separate persons, hence all the provisions of supplier and recipient would get apply along with IGST.

      In case of any further query, you mai connect with me on aggarwal.sumit194@gmail.com

  4. Ajay Prem Kaushal Pareek says:

    We are a GTA head office in Jaipur with transport contracts form various places in India including J&K .We are Maintaining all accounts in Jaipur , All billing is done from Jaipur . Service tax return is also filed from Jaipur. How we have to get register/Migrate ourself under new regime ?

  5. Mukesh says:

    May i know about the Amount of Fee prescribed for Registration
    and Security amt to be pledged with Dept if any applicable for all formate of GST is required to be registered
    Thanks

  6. b n venkataramu says:

    WHAT IS THE TIME LIMIT FOR TRANSITIION OF VAT TO GST FOR INPUT CREDIT AVAILABLE
    AND GOODS WERE LYING IN STOCK FOR PAST ONE YEAR THAT CREDIT CAN BE TRANSFERRED OR NOT
    DO WE NEED TO RAISE INVOICE FOR CLAIMING ADVANCE PAYMENT WITH GST

    • sumitaggarwal says:

      Hi Venkataramu, time limit for transition period is 90 days from appointed day.

      Input tax credit in respect of atmost 12 months old stock can be claimed by complying with many stringent comditions, not before that period.

      Yes, for advance payment under gst, you would be required to issue tax invoice

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