SECTION 22 PERSON LIABLE FOR REGISTRATION

Section 22 of Goods and Services Tax Act, 2017 provides every supplier to be registered in the state from where he makes taxable supplies of goods or services or both if his aggregate turnover in a financial year exceeds Rs 20 Lakh.

However, for Special Category states he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs 10 Lakh.

Explanation to Section 22 defines ‘Special Category States‘ as the states as specified in subclause (g) of clause (4)of Article 279A of the Constitution. Following are the list of States provided in Article 279A(4)(g) of the Constitution:

“Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand”

Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 has excluded State of Jammu and Kashmir from the definition of Special category States for the purpose of Section 22 of GST Act, 2017 with effect from 8 July 2017.

Further, Central Goods and Services Tax (Amendment) Act, 2018 has excluded the States of Arunachal Pradesh, Assam, Meghalaya, Sikkim, Himachal Pradesh, and Uttarakhand from the definition of Special category States for the purpose of Section 22 of GST Act, 2017 with effect from 1 Feb 2019. 

NOTIFICATION NO- 10/2019-CT RAISING MINIMUM THRESHOLD FOR GOODS

Notification No.-10/2019- Central Tax has further exempted from obtaining registration for a person engaged exclusively in supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakh with effect from 1 April 2019 except persons making intrastate supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.

Liability for Registration under GST Act, 2017 for various States can be summarized as under:

Sr. No. States Before 1 Feb 2019 w.e.f  1 Feb 2019 *1 w.e.f 1 April 2019 *2
 FOR  SUPPLIER ENGAGED EXCLUSIVELY IN “SUPPLY OF GOODS”
1 Manipur, Mizoram, Nagaland, Tripura Rs 10 Lakh Rs 10 Lakh Rs 10 Lakh
2 Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh Rs 10 Lakh Rs 20 Lakh Rs 20 Lakh
3 Himachal Pradesh Rs 10 Lakh Rs 20 Lakh Rs 40 Lakh
4 Jammu and Kashmir Rs 20 Lakh Rs 20 Lakh Rs 40 Lakh
5 Puducherry, Talangana Rs 20 Lakh Rs 20 Lakh Rs 20 Lakh
6 Rest States of India Rs 20 Lakh Rs 20 Lakh Rs 40 Lakh
 FOR SUPPLIER ENGAGED IN “SUPPLY OF SERVICES” OR BOTH “GOODS AND SERVICES”
1 Manipur, Mizoram, Nagaland, Tripura Rs 10 Lakh Rs 10 Lakh Rs 10 Lakh
2 Uttarakhand, Assam, Meghalaya, Sikkim, Arunachal Pradesh, Himachal Pradesh Rs 10 Lakh Rs 20 Lakh Rs 20 Lakh
3 Rest States of India Rs 20 Lakh Rs 20 Lakh Rs 20 Lakh

*1 Refer to Central Goods and Services Tax (Amendment) Act, 2018 for change in the definition of Special Category States

*2 Refer Notification No.-10/2019- Central Tax

(For any clarifications author can be reached at ca.hsinghal@gmail.com)

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7 Comments

  1. Rohit Jain says:

    This article is very useful.
    Only concern is w.r.t. registration limit for the state of Manipur w.e.f. 01.04.2019. Whether it is 10/20 lakhs?
    As no notification is found on the state government website.

  2. subrahmanyam says:

    Informative article
    when exemption limit is exceed in a year does the initial amount of 20 laksh(service provider) is liable for tax or the entire turnover becomes taxable.
    for example in a year the turnover is 25 lakhs
    will first 20 lakhs is exempt or not
    please clarify

  3. dsouza sadh says:

    i am a trader which turnover is under 40 lacs in gujarat . is there required gst registration while we send goods to other state . and transporter do not accept goods to carry out site state. having declarition that we are under 40lacs turnover trader who are not applicable gst

  4. CA. Sahil Jain says:

    Sir,

    The content is extremely useful.
    I just want to correct the status of Assam as what i interpret from Notification 10/2019 – CT is that Assam has not been specifically included in the exclusions. Therefore limit of 40 Lakhs is applicable in Assam.

    Assam, Himachal Pradesh and JK are the 3 special category states where the limit for exclusive supply of goods is 40L and for supply of services or services + goods is 20L.

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