Who should register under the GST Act?

Every supplier shall be liable to be registered under the Act but government has given exemption to small suppliers to get them register under the GST act after crossing the threshold limit.

(1) Section 22 mandatorily provides the following conditions where you have to take GST registration if his aggregate turnover in a financial year exceeds:

For Special Category States:-  Rs.10 lakh.

For other States:- Rs.20 lakh.

(2) Every person who, is registered or holds a license under an erstwhile law,

(3) Where a business carried registered under this Act is transferred as a going concern,

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of amalgamation or, demerger of two or more companies the transferee shall be liable to be registered.

Explanation:  For the purposes of this section,

  • 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;
  • 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;
  • the expression “special category States” shall mean the States as specified in subclause (g) of clause (4) of article 279A of the Constitution.

Further Section 24 of CGST act overrides the Section 22 and asks you to get registered if you fall under any of the category irrespective of the threshold limit (No limit of Rs.10/20 lakh will apply in following cases):

  • Persons making any inter-State taxable supply;

Notification No. 10/2017 – Integrated Tax dated 13.10.2017 provides exemption from registration to persons making inter-State supplies of taxable services where turnover is not exceeding Rs.20 Lacs

  • Casual taxable persons making taxable supply;

Notification No. 32/2017 – Central Tax dated 15.09.2017 (amended by Notification No. 38/2017 – Central Tax dated 13.10.2017) provides exemption from registration to a casual taxable person making taxable supplies of handicraft goods.

  • Persons who are required to pay tax under reverse charge;

Notification No. 5/2017 – Central Tax dated 19.06.2017 provides exemption from registration to persons engaged only in making taxable supplies where total tax is liable to be paid on reverse charge basis

  • Person who are required to pay tax under sub-section (5) of section 9;
  • Non-resident taxable persons making taxable supply;
  • Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
  • Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
  • Input Service Distributor, whether or not separately registered under this Act;
  • 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;
  • Every electronic commerce operator;
  • 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; and
  • Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Few Important Points

Display of registration certificate and Goods and Services Tax Identification Number on the name board. 

  • Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business.
  • Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.

 

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