Registration under GST as per section 22 to 25

Sub-section

Bare Act

Explanation

1

(1) Every supplier [2(105)] shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply [2(108)] of goods or services or both, if his aggregate turnover [2(6)] 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. (Amendment from 01/02/2019)

Every supplier +

supplying a supply leviable to tax +

aggregate turnover (taxable supply+ exempt supply (u/s 11) + Exports+ Interstate Branch Transfer) +

during the F.Y. on PAN India basis +

exceeds Rs. 20 Lakh.

For Special category state limit is Rs. 10 Lakh (From 01-02-2019 apply only to 4 States only)

From 1st of April 2019 supplier supplying exclusively goods then limit is Rs. 40 Lakhs from any state except special category states but including Jammu and Kashmir  (Notification No. 10/2019)

State- wise Summary of threshold limit of turnover

2

Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

Last date for applying for migration was 31st Jan. 2019 and intimating the same is 28th Feb. 2019

3

Where a business [2(17)] carried on by a taxable person registered under this Act is transferred, whether 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.

Registered person +

transfer business as going concern +

acquirer shall obtain registration from the date of Transfer.

As per para 4 of Schedule II transfer of business is supply of service.

As per S.No. 2 of Notification 12/2017- CGST(Rate) Transfer of business on going concern basis is exempt from tax.

4.

Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, 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 or Tribunal.

In case of amalgamation or demerger, +

By order of High Court or tribunal +

the amalgamated company or demerged company required to be registered +

from the date of certificate of incorporation.

Explanation (i) & (II)

The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

(ii) 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 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;

Aggregate turnover includes: +

Supply by agent on behalf of principal +

in turnover of agent

Aggregate turnover excludes +

Supply by job worker after job work +

From the turnover of Job worker

Section

Provision

Explanation

2^nd Proviso to Section 22(1)

“Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified."

In the Explanation, in clause (iii), after the words “State of Jammu and Kashmir”, the words “and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand” shall be inserted.”.

Via amendment to Explanation (iii), Threshold limit for registration has been increased to Rs. 20 Lakhs w.e.f. 01-02-2019

Rs. 10 Lakh threshold limit only for the following 4 states

1. Manipur
2. Mizoram
3. Nagaland
4. Tripura

For rest of the states and union territories Threshold limit is 20/40 Lakhs as the case may be.

Section

Bare Act

Explanation

1(a)

Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt (2(47)) from tax under this Act or under the Integrated Goods and Services Tax Act;

Exclusively supplying +

wholly exempt (Nil rated, exempted u/s 11+ non-taxable supply) +

or not liable to tax +

then no registration is required

1(b)

An agriculturist 2(7), to the extent of supply of produce out of cultivation of land.

Only Individuals and HUF +

undertakes cultivation of land +

in own or family’s supervision +

fall within the definition

Other than above doing the same work is not an agriculturist under GST act, Hence they are not exempt for taking registration under GST but they can go for 23(1)(a).

(2)

The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

Government have notified the following.

1. 05/2017- CGST dated 19-06-2017
2. 32/2017- CGST dated 15-09-2017 (amended by Notification 38/2017 dated 13-10-2017). - superseded by Notification 56/2018- dated 23^th Oct. 2018
3. 65/2017- CGST dated 15-11-2017 (as amended by Notification 06/2019 dated 29-01-2019).
4. 56/2018- CGST dated 23-10-2018
5. 10/2019- CGST dated 07-03-2019

Section

Bare Act

Explanation

24(i)

Persons making any inter-State taxable supply

Engaged in +

inter-state supply +

even for less than threshold limit +

required to get himself registered.

W.e.f. 15/11/2017 person supplying interstate supply of service than he is not liable for register if turnover is less than 20 Lakhs.

(ii)

Casual taxable persons 2(20) making taxable supply

Occasionally undertakes supply +

from the state from where he does not have fixed establishments +

than he will liable to be registered in than state.

(iii)

Persons who are required to pay tax under reverse charge.

Receiving supplies +

tax on which liable to be paid under reverse charge +

than he shall be liable for GST registration.

It cover only section 9(3) notified goods and services. For Section 9(4) receipt should already be registered.

(iv)

Person who are required to pay tax under sub-section (5) of section 9

U/s 9(5) 3 services has been notified i.e. Accommodation, House keeping and Travelling of passengers. If these services are provided through e-commerce operator than that E-commerce operator need get itself registered.

(v)

Non-resident taxable persons  making taxable supply

Threshold limit of Rs. 10/20/40 Lakhs does not apply on Non-resident taxable person.

(vi)

Persons who are required to deduct tax under section 51, whether or not

separately registered under this Act;

Government departments, authorities, public sector units fall in this clause.

(vii)

Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

Agent supplying  +

on behalf of his principal (only if that principal is liable to be registered) +

Than agent liable to get registered

(viii)

Input Service Distributor, whether or not separately registered under this act

There is no Threshold limit of turnover for Input Service  distributor (ISD).

(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;

Supplying goods or service +

through E-commerce operator +

that supplier required registration without any threshold limit.

Exception: Notified u/s 9(5)

1. Accommodation service. Eg. Through OYO
2. Travelling of Passenger Eg. Through OLA
3. House keeping Eg. Through Urban Clap

(x)

Every electronic commerce operator;

Who is required to collect tax at source u/s 54- Inserted by CGST amendment act 2018

Every E-commerce operator +

required to be registration without any turnover threshold limit.

Upto 31-01-2019, even e-commerce operators used for providing exempt supplies are also required to get registered but w.e.f. 01-02-2019 e-commerce operators used for taxable supplies are required to get themselves registered.

(xi)

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

OIDAR services provided +

to unregistered person +

that provide required to take registration.

Service provider to registered person is not required registration because that registered person (Recipient of service) is required to pay tax under reverse charge.

(xii)

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

No notification has been issued