Provisions relating to persons liable for obtaining GST registration and provisions relating to compulsory GST registration are contained under section 22 and section 24, respectively, of the Central Goods and Service Tax (CGST) Act, 2017. The current article explains both the aforesaid provisions.
Person Liable For Obtaining GST Registration
As per section 22 of the Central Goods and Service Tax (CGST) Act, 2017 following list of persons are liable for obtaining GST registration –
1. Supplier engaged in exclusive supply of goods and whose aggregate turnover in the financial year exceed forty lakh rupees, is required to obtain GST registration in the State or Union territory from where the supply is initiated, (notification No. 10/2019-Central Tax, dated 07.03.2019)
2. In case of special category states, supplier engaged in providing a taxable supply of goods are required to obtain GST registration in case the aggregate turnover exceeds INR 20/10 Lakhs in a financial year.( Some special catehgory states ie Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, Uttarakhand opted for turnover limit of Rs 20 Lakhs whilst Kerala and Telangana maintained status Quo- limit of Rs 10 Lakhs )
3. Supplier engaged in providing a taxable supply of services are required to obtain GST registration in case the aggregate turnover exceeds 20 Lakhs in a financial year.
4. In case of special category state ,supplier engaged in providing a taxable supply of services are required to obtain GST registration in case the aggregate turnover exceeds 10 Lakhs in a financial year.
5. Persons who are registered under the erstwhile law, on the day immediately preceding the appointment date, is liable to obtain GST registration.
6. The registered taxable person when transfers business to another person on going concern basis, whether on account of succession or otherwise, in such case the transferee or the successor is liable to obtain GST registration.
7. Transfer of company in case of amalgamation or de-merger in accordance with an order of a high court, tribunal or otherwise.
Compulsory GST Registration –
Provisions of compulsory registration are contained under section 24 of the Central Goods and Service Tax (CGST) Act, 2017.
Categories of persons who are required to obtain compulsory registration are listed herein below –
- The person engaged in the inter-state taxable supply of goods or services or both;
- A casual taxable person engaged in taxable supply;
- Persons liable to pay tax under reverse charge mechanism;
- A non-resident taxable person engaged in providing taxable supply;
- A person liable to pay tax under section 9 (5) of the Act;
- The person liable to deduct tax at source (TDS);
- Input Service Distributor;
- A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);
- The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;
- Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.
It must be noted that categories of the person covered under compulsory registration are mandatorily required to obtain registration irrespective of quantum of turnover.
(Republished with Amendments. Amendments been made by CA Anita Bhadra)
Author Bio
Sir if a dealer have dealing both Sale and Service in a financial year , service value was rs 15 lac and sales value was rs 15 lac so my question is for dealer will cover for gst registration
Sir A person who is dealing with distribution of sim cards business the person who is mandatory to take gst registration
2. The person who dealing with franchise business that person mandatory to take gst registration
Please let me have your views on the followinf query:
ABC Pvt. Ltd , with just one paid staff is registered under GST having its office in Mumbai. They are mainly doing online/export of services. Since March 2020 the main team consisting of two have located to a diffrent place due to Covid Pendamic. Where they have taken a house on lease in company’s name with some domestic staff. Now they are working online from this new place in a different state only due to Covid compulson. My query is:
1. WHether the company is liable to register in the other state for GST. Or it is not required.
Sir,
Client is doing business of money tranfer.
Is GST registration is compulsory or voluntary upto specified limit?
Dear Sir
I m supplying consultancy service through Tele communication out of india and getting payment in Foreign Currency. Am i liable for GST Registration. and how much tax will be pay Out of india supply.
मैं एक प्राइवेट लिमिटेड में जॉब कर्ता हु ।मुझे GST नंबर होना है । मे केसे APPLY करना है।
sir i have gst registration number .i not charge gst in bill till 20 lakh and filed nil return is it ok
Good Morning,
Sir I am a LIC agent.Now i want to start a business(supply of building construction materials).And for that i want a GST registration.My question is if i take GST registration on my name ,do i have to pay GST on my commission income too ?
Thanks and regards
Good article. You should also write that for interstate supply of services, Rs. 20 lakh basic exemption is applicable
What happens when gst no is availed without landrord permission by using falae documents
Sir. I am doing retail business of selling seed’s /pesticides and fertilizers to farmer’s. My total annual sales is around 20 lakhs. Is it necessary to have GST No and does I have to pay GST. As we are purchasing fertilizers and pesticides with GST.
When nobody believes in you you are the ony one able to prove otherwise
I am a Humble person
Are lawyers required to register with GST? , as some of the law firms deduct TDS
Sir,
Interstate supply of services is not liable for compulsory registration in my opinion. Please confirm.
As per my understanding, as per Notification No. 10/2017 – Integrated Tax dated 13 October 2017, the Central Government, has specified that persons making inter-State supplies of taxable services and having an aggregate turnover on all India basis, not exceeding INR 20 lakh in
a financial year are category of persons exempted from obtaining registration under the
said Act. Please confirm the same?
Sir. I have listed some items on e-commerce like amazon and have got Nil Return till now
Offline sale/ purchase also be reflected whether a material purchase of 500/- alone, and pay taxes for scratch aswell. kindly suggest
I have listed some items on e-commerce like amazon and have been filling Nil Return till now
Should any Offline sale/ purchase also be reflected whether a material purchase of 500/- alone, kindly suggest
11. Persons engaged in the taxable supply of goods or services or both on behalf of another registered taxable person, whether as an agent or otherwise.
Above provisions remotely reveals it may cover all the agents irrespective of any business – commission agent, real estate agent, brokers. Please clarify
I am selling on e-commerce like amazon, and I have been filling Nil -return till now .
Should any Offline sale purchase be also reflected on GST Return whether a purchase of Rs 500/- alone
Dear Sir,
We are service provider at Delhi. We have clients outside Delhi and we get order from there only. We charge GST & CGST from them . Now they want that we should write/charge on bill IGST instead of CGST. How we can satistfy the party about the same. We will be obliged If you guide us.
According to them other parties are giving bill with IGST.
Dear Sir
Is compulsory registration applicable ? if total turnover including export turnover is below 20 Lakh. Does Notification No. 10/2017- Integrated Tax benefit available to export turnover.
regards
Rinku Rawat
Thanks a lot.
Can you please let us know whether GST is applicable for Trust, AOP’s etc.