Today we are discussing the cases where GST registration is compulsorily required.

Section 24 of the CGST Act, 2017 has several categories of such persons,

1. Persons making any INTER-STATE TAXABLE SUPPLY | Section 24(i)

Exception:

i) Persons making inter-state supplies of taxable services , having an aggregate turnover not more than Rs20 Lakhs (Rs. 10 lakhs for special category States, except J & K)

Notification No. 10/2017-Integrated Tax dated 13.10.2017.

ii) Inter-state Supply of Handicraft Goods, exempt from registration if , the aggregate annual value of all supplies, PAN-India, less than Rs 20 lakhs/ 10 lakhs

Notification no. 33/2017-CT dt 15.09.2017, amended by no. 38/2017-CT dated 13.10.2017

iii) job worker with turnover less than Rs. 20/10 lakhs is exempt from registration, even if inter-State supplies are made by him to registered person.

(However, This exemption is not available to Jewellery, goldsmiths’ and silversmiths’ wares and other articles manufactured on job work basis )

Notification No. 7/2017-IT dated 14-9-2017 .

Section 24 – Compulsory registration under GST in certain cases

2. CASUAL TAXABLE PERSONS MAKING TAXABLE SUPPLY | Section 24(ii)

Casual taxable person who is not having fixed place of business in the State from where he wants to make supply.

Exception:

However CTPs making supplies of specified handicraft goods need not take compulsory registration and are entitled to the threshold exemption of Rs. 20 Lakh.

3. Persons who are required to pay tax under REVERSE CHARGE MECHANISM | Sec 24 (iii)

Section 9(4) specified the category of person who is required to pay tax under the reverse charge mechanism (RCM).

Exception:

Services by a partnership firm of Advocates/individual Advocate/Sr Advocate by way of legal services to a business entity with aggregated turnover below the threshold limit u/s 22(1).

Notification No. 12/2017 CT(Rate) dated 28.06.2017

4. Person required to pay tax u/s 9(5) | Tax paid by ECO on behalf of the suppliers for services supplied via ECO | Sec 24 (iv)

i) Transportation of passengers by a radio-taxi, motor cab, maxi cab and motorcycle

ii) accommodation in hotels, inns, guest houses, clubs, campsites, etc for residential/lodging purpose

Notification No. 17/2017-Central Tax (Rate) dated 28th June, 2017

iii) Services by way of housekeeping, such as plumbing, carpentering

Notification No. 23/2017-Central Tax (Rate) dated 22nd Aug 2017

5. Non-Resident Taxable Person (NRTP)  | Section 24(v)

Non-resident taxable persons making taxable supply, irrespective of the threshold limits u/s 22(1)

Note: NRTP is someone who is not having fixed place of business in India and occasionally undertakes transactions involving supply of goods &/or services  whether as principal /agent /in any other capacity

6. Persons who are REQUIRED TO DEDUCT TAX UNDER SECTION 51 | Section 24(vi)

As per Sec 51 of the Act, following are the TDS Deductor

(a) Dept /establishment of Central Govt /State Govt; or

(b) local authority; or

(c) Governmental agencies; or

(d)

a) Authority/board/any other body,

      • set up by an Act of Parliament or a State Legislature; or
      • established by any Government, with fifty – one percent. or more participation by way of equity or control, to carry out any function;

b) Society established by the Central Govt/ State Govt/Local Authority under the Societies Registration Act, 1860 (21 of 1860);

c) PSUs liable for Registration as Tax Deductor under GST Act.

7. AGENTS  | 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

Exception:

Registration required only by C&F agents who stock and sell goods on behalf of the Principal. Registration not required for ordinary commission agents, if annual aggregate turnover is less than Rs 20/10 lakhs

CBIC Circular No. 57/31/2018-GST dated 4-9-2018.

8. Input Service Distributor ISD | Section 24(viii)

ISD is actually an office of supplier of goods &/or services which receives tax invoices issued for receipt of input services and distributes the credit of CGST, SGST, IGST paid on the said services to supplier of taxable goods &/or services having the same Permanent Account Number as that of the said office.

9. SUPPLYING THROUGH ECO | Sec 24(ix)

Suppliers of goods who supply through ECOs, who are liable to collect tax at source, other than supplies specified u/s 9(5)

10. ECO Sec 24(x)

Every ECO who is required to collect tax at source u/s 52 would require registration, irrespective of the threshold

11. Person supplying OIDAR services | Section 24(xi)

Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

12. Notified Persons | Section 24(xii)

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

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