GST is the biggest tax reform of the Country that subsumed various taxes in a single tax. With the introduction of GST the cascading effect has been abolished. It is an indirect nature tax applicable on the supply of goods or services or both. The taxable event of GST is supply. The CGST Act, 2017 defines the term ‘supply’ in a wider sense that is capable of covering almost all kind of transactions relating goods or services or both.

With the introduction of the GST the taxpayer base has increased tremendously. The CGST Act, 2017 prescribes the threshold limit of turnover for registration under GST.  Any supplier whose aggregate turnover exceeds the threshold limit is liable to obtain registration under this Act. A 15-digit (Alpha-numeric code) Goods and Service Tax Identification Number (GSTIN) is granted to the taxpayer.

Who is liable to obtain registration under GST?

Section 22 of the CGST Act, 2017 provides that any person engaged in making taxable supply of goods or services or both whose aggregate turnover in a financial year exceeds twenty lakh rupees is liable to be registered under GST. However, the turnover limit is 40 Lakh Rupees in case the supplier is engaged exclusively in the supply of goods.

Provided that the threshold limit is set at 10 Lakh Rupees for person making supplies from any of the special category state.

Compulsory GST Registration

Section 24 provides that following categories of persons shall be required to be registered under the Act:

1. Any person engaged in inter-state supply;

2. A Casual taxable person making taxable supply;

3. Any person who is required to pay tax under reverse charge;

4. Any person who is required to pay tax under sub-section (5) of Section 9;

5. Non-resident taxable person making taxable supply;

6. Any person who is required to deduct tax under Section 51;

7. Every Electronic Commerce Operator who is required to collect tax Under Section 52;

8. An Input Service Distributor

9. An agent making taxable supply on the of a taxable person ;

10. A person making taxable supply, other than those specified under sub-section (5) of Section 9, through an ECO who is required to collect tax under section 52;

11. Every person supplying OIDAR services from a place outside India to a person in India, other than a registered person;

12. Such other person or class of persons as may be notified by the Government on the recommendation of council. 

Who is not liable to obtain GST Registration?

Section 23 of the CGST Act prescribes the following class of persons not liable to get registered under this Act

1. Any person engaged in the exclusive supply of goods or services or both are not liable to tax or wholly exempt from tax under the CGST act and IGST Act.

2. An agriculturist, engaged in the supply of produces out of cultivation of land.

Time limit to apply for GST registration?

As per Section 25 any person who becomes liable to obtain registration shall make an application in FORM GST REG-01 within 30 days from the date on which he becomes liable for registration under the Act.

Author Bio

Qualification: CS
Company: Praman Advisors private limited
Location: New Delhi, Delhi, India
Member Since: 19 Feb 2018 | Total Posts: 64
I am a Practicing Company Secretary and a Lawyer and have an experience of over 12 years. I have been practicing in the field of Corporate Laws, Secretarial Audits, Legal Drafting, Compliances, NBFC, FEMA & RBI and SEBI, Stock and Commodity Market Exchange Regulation, Advisory of Listed and unli View Full Profile

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February 2024