We are well aware that as per Section 22 of CGST Act, GST registration is required if the supply of goods or services exceeds the value of Rs.20 lakhs in a year.  With effect from 1st April 2019 this threshold limit has been increased from Rs.20 lakhs to Rs.40 lakhs only for supply of goods.  And the limit of Rs.20 lakhs remains the same for supply of services.  The limit for special category states also remain the same of Rs.10 lakhs for both goods and services.

State Category Supply Limit Applicable Period
Normal Goods Rs.20 Lacs 1st July 2017 to 31/03/2019
Normal Goods Rs.40 Lacs From 1st April 2019
Normal Services Rs.20 Lacs From 1st July 2017
Special Goods Rs.10 Lacs From 1st July 2017
Special Services Rs.10 Lacs From 1st July 2017
Special Category States Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Mehalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand

Apart from the above, there are persons who are required to take compulsory registration as per Section 24 of CGST Act, irrespective of the turnover as below:

Persons making any Inter-state taxable supplies

If any person makes any taxable supply of goods or services from one state to another state, an inter-state supply, he is requited to take GST registration compulsorily.

Casual taxable persons making taxable supplies

If any person who occasionally supplies taxable goods or services in the course or furtherance of business, then he needs GST registration.  Example: supply of fireworks and crackers during festival seasons only.

Persons paying GST under RCM

Those persons who is required to pay GST under reverse charge mechanism as per Sections 9(3) and 9(4) of CGST Act shall get registered under GST.

Persons required to pay tax as per Section 9(5)

E-Commerce operators who make intra-state supplies of specific category of services as notified by the Government as per Section 9(5) shall get registered.  Those operators would pay tax under reverse charge mechanism.

Non-resident taxable persons

Non-resident taxable persons who make taxable supplies of goods or services occasionally whether as principal or agent or in any other capacity shall get registered compulsorily.

Persons to deduct tax under Section 51

A department or establishment of the Central or State Governments or local authority or Government agencies or such persons or category of persons as notified by the Government, who shall deduct tax under Section 51 of CGST Act, shall get registered.

Persons who make supplies on behalf of other taxable persons

Those persons who make taxable supplies of goods or services on behalf of other taxable persons whether as an agent or otherwise shall get registered.

Input Service Distributor

Input service distributors who intend to distribute the input tax credit, on supplies received, to its other offices having same PAN shall get registered.

Persons to collect tax under Section 52

E-commerce operators other than those specified under section 9(5) and who has to collect tax at source as per section 52 shall get registration under GST Act.

Electronic Commerce Operator

Every electronic commerce operator who owns, operates or manages digital or electronic facility or platform for e-commerce business shall get registered.

Persons supplying online information

Persons who supply online information and database access or retrieval services from a place outside India to a person in India, other than registered person.

Other Persons

Other persons or class of persons as may be notified by the Government on the recommendations of the Council.

For GST queries through email, please contact: [email protected]

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October 2021