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.
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.
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;
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.