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 providing a taxable supply of goods or services or both is required to obtain GST registration in the State or Union territory from where the supply is initiated, in case the aggregate turnover exceeds INR 20 Lakhs in a financial year.

2. In case of special category states, supplier engaged in providing a taxable supply of goods or services or both are required to obtain GST registration in case the aggregate turnover exceeds INR 10 Lakhs in a financial year.

3. Persons who are registered under the erstwhile law, on the day immediately preceding the appointment date, is liable to obtain GST registration.

4. 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.

5. 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 –

1. The person engaged in the inter-state taxable supply of goods or services or both;

2. A casual taxable person engaged in taxable supply;

3. Persons liable to pay tax under reverse charge mechanism;

4. A non-resident taxable person engaged in providing taxable supply;

5. A person liable to pay tax under section 9 (5) of the Act;

6. The person liable to deduct tax at source (TDS);

7. Input Service Distributor;

8. E-commerce operator;

9. A person engaged in supplying goods or services or both through e-commerce operator who is required to collect tax at source (TCS);

10. The person engaged in supplying online information and database access or retrieval services from a place outside India to an unregistered person;

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.

It must be noted that categories of the person covered under compulsory registration are mandatorily required to obtain registration irrespective of quantum of turnover.

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12 Comments

  1. Anonymous says:

    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?

  2. Bhupinder Singh says:

    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

  3. Bhupinder Singh says:

    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

  4. vikas says:

    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

  5. Bhupinder Singh says:

    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

  6. Vijay Jain says:

    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.

  7. Rinku Rawat says:

    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

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