Compulsory GST Registration Requirement Under Section 24 of CGST Act, 2017

In India, Goods and Services Tax (GST) registration is a mandatory requirement for businesses with an annual turnover exceeding specified thresholds. It replaces a complex array of indirect taxes and unifies the taxation system. To register for GST, businesses must provide essential details to the GST portal and obtain a unique GSTIN. This process facilitates seamless tax compliance and ensures a transparent tax structure. Registered businesses can collect and remit GST, avail of input tax credits, and contribute to a more efficient and streamlined taxation ecosystem. In the maze of GST regulations, Section 24 of the CGST Act, 2017 shines a spotlight on cases where registration is not a choice but a necessity. This section takes precedence over the general provisions of registration outlined in Section 22 of the Act. Unlike those who benefit from the threshold limit discussed earlier, individuals falling under Section 24 must register compulsorily, regardless of their turnover. Let’s delve into the exhaustive list of scenarios where compulsory registration becomes imperative:

1. Inter-State Taxable Supply: Individuals engaged in making supplies that cross state borders must register.
2. Casual Taxable Persons: Those involved in occasional or infrequent taxable supplies fall under this category.
3. Reverse Charge Payers: Individuals obliged to pay tax under the reverse charge mechanism are required to register.
4. Specified Services under Section 9(5): Those liable to pay tax under Section 9(5) for specific services, as notified in the Central Tax (Rate) Notification, must register.
5. Non-Resident Taxable Persons: Individuals from outside the country making taxable supplies within India fall under this category.
6. Tax Deductors (TDS): Individuals required to deduct tax at source (TDS) under Section 51 are mandated to register.
7. Agents Making Taxable Supplies on Behalf of Others: Individuals acting as agents, making taxable supplies on behalf of others, must register.
8. Input Service Distributors: Whether or not separately registered, input service distributors are required to register.
9. Suppliers through Electronic Commerce Operators: Individuals supplying goods or services through electronic commerce operators subject to tax collection at source (TCS) under Section 52 are mandated to register.
10. Electronic Commerce Operators: Every electronic commerce operator must register.
11. Online Information and Database Access or Retrieval (OIDAR) Service Providers: Individuals providing OIDAR services from a location outside India to someone within India, excluding registered persons, fall under this category.
12. Other Notified Classes: The government, based on GST Council recommendations, may notify other classes of persons for compulsory registration.

It’s crucial to note that registration under Section 24 has a limited scope when the Composition Scheme is in consideration. The Composition Scheme comes with its own set of conditions and restrictions, making it unsuitable for every type of taxpayer. Therefore, individuals falling under Section 24 must comply with the compulsory registration requirements, ensuring a comprehensive and inclusive approach to GST adherence.