Mandatory GST Registration

GST registration is not mandatory perse, its applicability is dependent upon certain conditions.

For proper understanding of mandatory application of GST registration, it is divided into two categories

(i) Mandatory registration based on Turnover, and

(ii) Mandatory registration irrespective of Turnover.

MANDATORY GST REGISTRATION BASED ON TURNOVER

• Every supplier making a taxable supply of goods or services or both in the State shall be liable to be registered under this Act if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees [Section 22(1)]

•  However, w.e.f. Notification No. 10/2019 (CT) dated 7th March, 2019 a person who is exclusively engaged in supply of goods is exempt from registration if aggregate turnover in the financial year does not exceed forty lakh rupees except in following cases:

(a) persons required to take compulsory registration under section 24 of the Act;

(b) persons engaged in making supplies of the goods, the description of which is specified in the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column of the Table;

(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and

(d) persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act.

MANDATORY GST REGISTRATION IRRESPECTIVE OF TURNOVER

i. persons making any inter-State taxable supply [Section 24]

ii. casual taxable persons making taxable supply [Section 24]

iii. persons who are required to pay tax under reverse charge [Section 24]

iv. person who are required to pay tax under sub-section (5) of section 9; (inter state supply though e-Commerce supplier) e-commerce sellers/aggregators need not register if total sales is less than Rs. 20 lakh. Notification No. 65/2017 – Central Tax dated 15.11.2017 [Section 24]

v. non-resident taxable persons making taxable supply. [Section 24]

vi. persons who are required to deduct tax under section 51, whether or not separately registered under this Act. [Section 24]

vii. persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise. [Section 24]

viii. Input Service Distributor, whether or not separately registered under this Act. [Section 24]

ix. persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52. [Section 24]

x. every electronic commerce operator. [Section 24]

xi. every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person. [Section 24]

xii. such other person or class of persons as may be notified by the Government on the recommendations of the Council. [Section 24]

xiii. Every person who is registered under an earlier law (i.e., Excise, VAT, Service Tax etc.) needs to register under GST, too [Section 22(2)]

xiv. When a business which is registered has been transferred to someone/demerged, the transferee shall take registration with effect from the date of transfer [Section 22(3)].

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