CA Pankaj Kumar Rathore

ca-pankaj-kumar-rathoreSection 19 of GST Model Law provides all about the registration under GST regime.

1. As per sub-section (1) of section 19, every person who is liable to be registered under Schedule III of the Act shall apply for registration within thirty days from the date on which he become liable to registration but if the person is registered under an earlier law, it shall not be necessary for him to apply for fresh registration except in case of Input Service Distributor under this section. (Means Input Service Distributor who are registered under an earlier law shall be required to apply for fresh registration).

Liability for Registration based on Aggregate Turnover (Schedule III):

As para 1 of Schedule III, every supplier shall be liable to be registered under GST in the state from where he makes taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds threshold limit as announced by GST Council on 24.09.2016 of:

  • 20 lakh
  • 10 lakh in North Eastern States including Sikkim

As per section 2(6), “Aggregate Turnover” means the aggregate value of:

  • all taxable and non-taxable supplies
  • exempt supplies and
  • exports of goods and/or services

of a person having the same PAN, to be computed on all India basis and excludes taxes, if any, charged under GST.

As per explanation of this sub-section, it does not include:

  • value of supplies on which tax is levied on reverse charge basis and
  • value of inward supplies.

The supplier shall not be liable to registration if his aggregate turnover consists ONLY goods and/or services which are not liable to tax under this Act.

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

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

As per section 2(97), “taxable supply” means a supply of goods and/or services which is chargeable to tax under the Act.

Inapplicability of Threshold Limit as Para 5 of Schedule III:

(i) person making any inter-state taxable supply

(ii) causal taxable persons

(iii) person who are required to pay tax under reverse charge

(iv) non-resident taxable person

(v) person who required to deduct TDS u/s 37 of the Act

(vi) person who supply goods and/or services on behalf of other registered taxable person whether as an agent or otherwise

(vii) input Service Distributor

(viii)person who supply goods and/or services, other than branded services, through electronic commerce operator

(ix) electronic commerce operator

(x) an aggregator who supplies services under his brand name or his trade name

(xi) such other person or class of persons as may be notified

As per proviso to section 9, a person who is required to be registered under paragraph 1 of Schedule III of this Act shall not be considered as a taxable person until his aggregate turnover in a financial year exceeds Rs. 20 Lakh or Rs. 10 Lakh as the case may be.

It means that if a person get registered himself under GST on satisfying the limit prescribed under paragraph 1 of Schedule III but his turnover does not exceeds Rs. 20 Lakh then he is not required to pay taxes under GST on outward supplies of goods and/or services.

2. Section 19(2) of GST Law provides that notwithstanding anything contained in sub section (1), a person having multiple business verticals in a state may obtain a separate registration for each vertical subject to conditions.

He can also obtain single registration for all such business verticals in a State.

3. Voluntary Registration: As per section 19(3), a person may voluntary get himself registered under GST, although he is not liable to be registered under Schedule III, and all provisions of the Act shall apply to such person as are applicable to taxable person

Person who registered voluntary is liable to pay tax from the date of registration.

4. Mandatory PAN: As per section 19(4), every person shall have a PAN issued under Income Tax Act, 1961 in order to be eligible for grant of registration under the Act. As per sub-section (4A), a non-resident taxable person may be grant registration on the basis of any other documents as may be prescribed.

(In case of any query, please contact me at 9313215231 or mail capankaj97@gmail.com)

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3 responses to “Who is liable to Register under GST Law”

  1. Pawan Pawar says:

    my turnover may be cross 20 lack in finance year , please suggest what to do. if I register in mid of the year (Dec. or Jan) when my turnover cross the limit, then tax liability calculate on total turnover or from the when I take registration under GST

  2. kapil sharma says:

    One of my client run kirana store
    I made him register under composition scheme.
    My query
    he sell many item exempt in gst like flour
    Whether tax @1 % to be paid on sale of flour

  3. ANJANI PANDEY says:

    IF ASSESSE DO TRADING OF FRESH FRUITS & VEGETABLES,THEN HE IS LIABLE TO REGISTRATION UNDER GST ACT

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