Registration under GST :
The registration requirements have undergone various changes since the inception of the Goods and Services Tax on 1st July, 2017. There are numerous amendments and also notifications and circulars issued in this regards
| Section | Description |
| 22 | Persons liable for registration |
| 23 | Persons not liable for registration |
| 24 | Compulsory registration in certain cases |
| 25 | Procedure for registration |
| 26 | Deemed registration |
| 28 | Amendment of registration |
| 29 | Cancellation or suspension of registration |
| 30 | Revocation of cancellation of registration |
The requirement aspects of GST Registration are covered by sections from 22 to 24 of the Central Goods and Services Tax Act, 2017 and also the respective State Goods and Services Tax Acts, 2017. These sections provide for the liability for registration and also exemptions available from registration under the Goods and Services Tax regulations.
Section 22 : Person Liable for registration
Section 22(1):- Registration based on Turnover Threshold
A supplier who makes taxable supply of goods or services shall get registered from a state or union territory from where he makes taxable supply if his aggregate turnover, in a financial year, exceeds –
– Rs. 20 lakhs
– Rs. 10 lakhs (for Special Category States viz. Manipur,Mizoram, Nagaland, Tripura)
Thus, Under the GST regime, registration is PAN based. Registration has to be taken state-wise. More than one GST registration allowed in a State for different “place of business”.
Aggregate Turnover : As per section 2(6) of the CGST Act, 2017, aggregate turnover includes the aggregate value of:
(i) All Taxable supplies
(ii) all exempt supplies, (including non-taxable supplies)
(iii) exports of goods and/or services and
(iv) all inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover excludes central tax, State tax, Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on which tax is payable under reverse charge is not taken into account for calculation of ‘aggregate turnover’.
‘Aggregate turnover’ Vs. ‘Turnover in a State’:
The aggregate turnover is different from turnover in a State. The former is used for determining the threshold limit for registration as well as eligibility for composition scheme. However, the composition levy would be calculated on the basis of turnover in the State
State Wise Limit of turnover of Goods & Services for Registration :
| States with threshold limit of ` 10 lakh for both goods and services (Category A) | States with threshold limit of Rs. 20 lakh for both goods and services (Category B) | States with threshold limit of Rs. 20 lakh for services and Rs. 40 lakh for goods** (Category C) |
| Manipur | Arunachal Pradesh | Jammu and kashmir |
| Mizoram | Meghalaya | Assam |
| Nagaland | Sikkim | Himachal pradesh |
| Tripura | Uttarakhand | All other states |
| Puducherry | ** Excluding person engaged in supply of Ice cream,Pan Masala & Tobacco and manufactured tobacco substitutes | |
| Telangana |
–
| Doing Activity of/Category State | Aggregate turnover | Applicable threshold limit for registration | Whether liable to obtain registration? |
| State Category C | |||
| Exclusive Supply of clothes | 25 Lakh | 40 Lakh | NO |
| Exclusive supply of pan masala | 25 Lakh | 20 Lakh | YES |
| Exclusive supply of taxable services | 25 Lakh | 20 Lakh | YES |
| Supply of both taxable goods and services | 25 Lakh | 20 Lakh | YES |
| State Category B | |||
| Exclusive Supply of clothes | 25 Lakh | 20 Lakh | YES |
| Exclusive supply of pan masala | 25 Lakh | 20 Lakh | YES |
| Exclusive supply of taxable services | 25 Lakh | 20 Lakh | YES |
| Supply of both taxable goods and services | 25 Lakh | 20 Lakh | YES |
| State Category A | |||
| Exclusive Supply of clothes | 14 Lakh | 10 Lakh | YES |
| Exclusive supply of pan masala | 14 Lakh | 10 Lakh | YES |
| Exclusive supply of taxable services | 14 Lakh | 10 Lakh | YES |
| Supply of both taxable goods and services | 14 Lakh | 10 Lakh | YES |
E.g. on Aggregate Turnover & Turnover Limit :
Q : A Supplier of Mumbai (Maharashtra) is engaged in the business of Spare Parts as well as Alcoholic Liquor. The total turnover on supply of Spare Parts is only Rs. 12 lakhs and in case of petrol and diesel is Rs. 3 Crores.
Sol : Since Supply of Alcohol is not leviable to GST (Non Taxable) but supply of Spare Parts is taxable. In order to determine whether he is liable for registration, turnover of both the supplies, non-taxable as well as taxable would be taken into account for the threshold of Rs. 40 lakhs. Here the turnover of Spare Parts, Alcoholic Liquorl exceeds Rs. 40 lakhs. Thus, he is liable for registration.
A supplier shall get registered from every state from where he makes any taxable supply if aggregate turnover exceeds the aforesaid threshold.
If a person makes taxable supply of goods or services from more than one state or union territory, he shall be liable to get registered from each such state of union territory if the aggregate turnover exceeds the prescribed limits
If a person makes taxable supply of goods or services from any of the special category states along with any other state or union territory, he shall be liable to get registered if the aggregate turnover exceeds Rs. 10 lakhs even if the aggregate turnover doesn’t exceed Rs. 20 lakhs from all such states.
However, if the person makes supply of goods or services not liable to tax under this act or fully exempt from tax under the provisions of this act in any state or union territory, then he shall not be liable to get registered from such state or union territory
Example :
| Maharashtra – Rs. 12 Lakhs | Maharashtra – Rs. 15 Lakhs | Maharashtra – Rs. 12 Lakhs | Maharashtra – Rs. 15 Lakhs |
| Karnataka – Rs. 7 Lakhs | Karnataka – Rs. 7 Lakhs | Manipur – Rs. 7 Lakhs | Karnataka – Rs. 15 Lakhs – (exempt) |
| Total – 19 Lakhs | Total – 22 Lakhs | Total – 15 Lakhs | Total – 30 Lakhs |
| Registration required – No | Registration required – Both States | Registration required – Both States | Registration required – Yes Only in Maharashtra |
Section- 22(2) :- Registration of persons registered under existing laws
The persons holding registration under any of the existing laws shall get themselves registered w.e.f. from the appointed date, i.e. 1st July, 2019
Section – 22(3) :-Transfer of Business
If any business is transferred as a going concern, either on account of succession or otherwise, the transferee shall be liable to get registered with effect from the date of transfer.
Section – 22(4) :- Amalgamation, Merger or Demerger
If any business is transferred to another company pursuant to any order of amalgamation, merger or demerger issued by any High Court, Tribunal or any other authority, the resultant company shall be liable to get registered with effect from the date of certificate of incorporation issued by the Registrar of Companies in this regard.
Section 23 : PERSONS NOT LIABLE FOR REGISTRATION
Any person who is engaged exclusively in supply of goods or services that are not liable to tax or wholly exempt from tax under this act or IGST Act, 2017
An agriculturist shall not be liable to get registered under this act to the extent of supplies made out of cultivation of land
On recommendation of the Council, the Government may notify specific persons as exempt from getting registered under this act :
Following persons are notified by Government for exemption from Registration :
1) The persons who are only engaged in making supplies of taxable goods or services or both on which the total tax is liable to be paid by the recipient on reverse charge basis u/s 9(3) of the Act (5/2017 –Central Tax)
2) Casual taxable persons making taxable supplies of handicraft goods are exempted from obtaining registration under the act if the aggregate turnover doesn’t exceed
(a) –20lakhs
(b) – 10 lakhs (for special category states)
(Notf. No. 32/2017 & 56/2018 –Central Tax)
(Notf. No. 08/2017 & 03/2018 –Integrated Tax)
3) A job worker engaged in making inter-state supply of services to a registered person shall be exempted from obtaining registration under GST if the aggregate turnover doesn’t exceed
(a) –20 lakhs
(b) –Rs. 10 lakhs (for special category states)
This notification is not applicable for persons supplying services in respect of goods mentioned at Sr. No. 5 in annexure to Rule 138 i.e. –Jewellery, goldsmiths’ and silversmiths’ wares and other articles
(Notf. No. 7/2017 & 2/2019 –Integrated Tax
(4) Any person making inter-state taxable supplies of services shall not be required to obtain registration under GST if his aggregate turnover on all India basis doesn’t exceed
(a) –20 lakhs
(b) –10 lakhs (for special category states)
(Notf. No. 10/2017 & 3/2019 –Integrated Tax
Section 24 : – Compulsory Registration in Certain cases
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act, –
(i) persons making any inter-State taxable supply);
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge
(iv) person who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under this Act;
(ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
(x) every electronic commerce operator who is required to collect tax at source under section 52 [as amended by CGST (Amendment) Act, 2018, w.e.f. 01.02.2019];.
(xi) every person supplying online information and data base access or retrieval services from a place
outside India to a person in India, other than a registered person; and
(xii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.
Analysis : Section 24 over-rides section 22(1) but don’t over-ride section 23 which exempts persons from registration.
It means the persons mentioned in section 24 shall be liable for registration irrespective of the threshold of the aggregate turnover. However, any person exempt from registration u/s 23 shall not be bound by the section 24.
For e.g.: – Going by 24(1), “persons making any inter-State taxable supply” needs to be compulsorily registered, however Government has exempted
Any person making inter-state taxable supplies of services shall not be required to obtain registration under GST if his aggregate turnover on all India basis doesn’t exceed
(a) –20 lakhs
(b) –10 lakhs (for special category states)
Author Bio
Respected sir,
Trust is running school & college which is exempted under GST. Trust is giving hall and ground on rent. total rent is 10,00,000. Total fees collected is 1,00,00,000. What is the aggregate turn over? whether registration is required ?