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CA Ankit Jain

  • Every supplier shall be liable to be registered under GST in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds Rs 20 lakhs.
  • However, if supplier is engaged in business from North Eastern States including Sikkim then this threshold will be Rs. 10 lakhs.
  • Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day. Such person is not required to get fresh registration under this act. He can follow the procedure as may be prescribed in this behalf.
  • Where a business carried on by a taxable person registered under this Act is transferredwhether on account of succession or otherwise, to another person as a going concern, the transferee, or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
  • In a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, de-merger of two or more companies by an order of a High Court, the transferee shall be liable to be registered, where required, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court.
  • Supplier shall not be liable to registration if his aggregate turnover consists of only goods and/or services which are not liable to tax under this Act.
  • Following categories of suppliers shall mandatory required to get registered under this Act irrespective of the threshold limit:

1. Persons making any inter-State taxable supply.

2. Casual taxable persons.

3. Persons who are required to pay tax under reverse charge.

4. Non-resident taxable persons.

5. Persons who are required to deduct tax under section 37.

6. Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise.

7. Input service distributor.

8. Persons who supply goods and/or services, other than branded services, through electronic commerce operator.

9. Every electronic commerce operator.

10. An aggregator who supplies services under his brand name or his trade name.

11. Such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

Note 1:

The taxable threshold shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.

Note 2:

The supply of goods, after completion of job-work, by a registered job worker shall be treated as the supply of goods by the “principal” referred to in section 43A, and the value of such goods shall not be included in the aggregate turnover of the registered job worker.

Note 3:

An agriculturist shall not be considered as a taxable person and shall not be liable to take registration. (As per section 9 (1)).

Note 4:

Every person who is liable to take a Registration will have to get registered separately for each of the States where he has a business operation.

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June 2024