Registration under Central Goods & Service Tax Act (CGST Act) is governed by the provisions of section 22 and 24. Section 22 deals with the registration of suppliers of goods and/or services who are doing a sizeable business in a financial year.
According to section 22, every person whose aggregate turnover in respect of supplies of all goods and services made by him in a financial year exceeds the threshold limit of Rs.20 Lacs (Rs.10 Lacs in case of business activities are in North East States and Hilly Areas), will be liable for the registration in the said Act in each of the states and union territories (UT) in which he has some business activities.
Please note that the main purpose of charging section, that is section 22 of CGST Act, is to make all the large businesses liable for the registration under the act. Hence section 22 does not make any difference in taxable supply or exempt supply or zero rated supply or even non taxable supply while calculating the aggregate turnover of the person. By the same logic, section 22 takes into consideration all the supplies made by the person in all the states and UTs.
Section 22 is a general section which mandates the registration for every taxable person if threshold limit is crossed. However, there is another section 24 which mandates the registration for some specific class of persons even without reaching the threshold limit, i.e., Compulsory Registration
According to section 24, it is mandatory for the following class of persons to take the registration, without even checking for their threshold limit:
1. Any person making inter state supply
2. Casual Taxable person making taxable supplyOnline GST Certification Course by TaxGuru & MSME- Click here to Join
3. Non-Resident taxable person making taxable supply
4. Any person who is required to pay GST under reverse charge under any provision of the act
6. E-Commerce Operator in respect of specified services u/s 9(5) if those services are supplied by the actual service provider through that E-Commerce operator. For those specified services, actual service provider would not be liable to pay GST, hence he would not even require to take the registration in respect of those services
7. Every E-Commerce Operator. Please note that e-commere operators through a e-commerce platform serve as a mediator between buyer and seller, e.g. Flipkart or Amazon. Therefore any company who is selling its own products through its own website would not be covered under e-commerce operator, e.g. Titan which sells its watches through its own website. Such players would be required to get the registration u/s 22, after reaching the threshold limit
8. Any person who is supplying goods and/or services, except those services which are specified u/s 9(5), through such an E-Commerce operator who is required to collect TCS u/s 52
9. Any person who is required to deduct TDS u/s 51. Generally, these persons are govt. agencies/departments/local authorities which deduct TDS while making payment to supplier of goods and/or services if the value of that supply is more than Rs.2.5 Lacs
10. Any person who is supplying goods and/or services on behalf of any other taxable person (whether registered or not) whether as an agent or otherwise
11. Every person supplying online information (e.g. Netflix) and database access or retrieval services from a place outside India to a person in India, other than a registered person
12. Every other notified person in this behalf by the government.