Definition of supplier as per CGST Act, 2017:

Supplier” in relation to any goods or services or both, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.

As per section 22 and 24 of CGST ACT, 2017 following kinds of supplier shall be required to get register :

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law.

(3) Supplier making any inter-State taxable supply

(4) Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

(5) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

(6) A person required to pay under reverse charge.

Explanation.––For the purposes of this section,––

(i) the expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

(iii) the expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution.

Let’s understand with the help of few examples:

Q1. Shaym lives in Delhi and supply goods worth of Rs. 15 lakhs to Calcutta, whether Shyam is liable to register even if he his supply in a financial year does not exceed 20lakhs.

Ans1. Yes, as he is making inter-state supply.

Q2. Abu lives in Agra and provide services in U.P. only that does not exceed 12 lakhs, but he is registered under service tax, whether he is liable to register even if he his supply in a financial year does not exceed 20 lakhs

Ans 2. Yes, as he is registered under service tax act.

Q3. XXX from France provides database access or retrieval services to

Shyam & Co.(unregistered under GST),whether XXX is liable to register even if he is from outside India?

Ans 3. Yes, as law specifically provide that such kind of supplier is mandatory to register under GST, irrespective of turnover.

Disclaimer: The entire contents of this article is solely for information purpose and have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. It doesn’t constitute professional advice or a formal recommendation. The author has undertook utmost care to disseminate the true and correct view and doesn’t accept liability for any errors or omissions. You are kindly requested to verify & confirm the updates from the genuine sources before acting on any of the information’s provided herein above.

About the author: Author is a Chartered Accountant and can be reached on cashagungandhi@gmail.com

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Location: Maharashtra, IN
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