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Persons liable for GST Registration [Section 22 of the CGST Act, 2017]

When is a Person is liable for GST Registration [Section 22(1)] :

Every supplier shall be liable to be registered under the GST Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds Rs. 20,00,000 (Rs. 20 Lakh).

However, 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 Rs. 10,00,000 (Rs. 10 Lakh).

Meaning of Aggregate Turnover’:

“Aggregate Turnover” means the aggregate value of all—

(i) taxable supplies,

(ii) exempt supplies,

(iii) exports of goods or services or both, and

(iv) inter-State supplies

of persons having the same Permanent Account Number computed on all India basis

but excludes ..

(i) central tax,

(ii) State tax/Union territory tax,

(iii) integrated tax, and

(iv) cess.

Further, it will also exclude the value of inward supplies on which tax is payable by a person (i.e. the recipient) on reverse charge basis.

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.

Special Categories States:

As per the Constitution of’ India, the following are the special categories States:

States of Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur. Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

In other words, a supplier shall be liable to obtain registration in the State or Union territory from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds the following limits:

Rs. 10 Lakh

In case of Supply from any of the Special Category States specified above

Rs. 20 Lakh

In case of Supply from other than Special Category States

If a person has more than one branch whether in the same State / Union Territory or in more than one State or Union Territory, he shall be liable to registration if the turnover of all the branches exceeds Rs. 20.00.000 (Rs. 20 Lakh).

Example :

R is located in Delhi. He provides the following information :

Particulars

Amount (Rs.)

Value of taxable supply of goods in Delhi

12,00,000

Value of supply of Renting of Immovable Property Services in Delhi

9,00,000

Does R require any registration ?

Solution :

In this case, R requires registration under the CGST Act / SGST Act since the ‘aggregate turnover’ shall exceed the threshold limit of Rs. 20,00.000 (Rs. 20 Lakh) by including the value of taxable supply of goods and value of services.

Example :

R is located in Delhi and Haryana. He provides the following information :

Particulars

Amount (Rs.)

Value of supply of goods in Delhi

7,00,000

Value of exempt supply

6,00,000

Value of supply of Renting of Immovable Property Services in Delhi

9,00,000

Does R require any registration ?

Solution :

In this case. R requires registration under the CGST Act / SGST Act of both States, since the ‘Aggregate Turnover’ including exempt supply shall exceed the threshold limit of Rs. 20,00.000 (Rs. 20 Lakh) .

Persons Registered Under any pre-GST Law Liable to be Registered under GST [Section 22(2)]

Every person who, on the date immediately preceding the appointed day was registered or held a license under pre GST regime, was liable to be registered under the CGST Act / SGST Act with effect from the appointed day.

The appointed day was 22.06.2017

Liability of Registration in case of Transfer of Business [Section 22(3) & (4)]

Situation

Date from which the transferee is liable to be registered

(1) Where a business carried on by a taxable person registered under the GST Act is transferred, whether on account of succession or otherwise, to another person as a going concern [Section 22(3)]

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.

(2) Where there is a transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, dc-merger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise. [Section 22(4)]

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.

Example :

A business carried on by a taxable person R who is registered under the CGST Act / SGST Act is transferred to G as a going concern by way of a gift. In this case, the transferee i.e. G shall be liable to take registration under the CGST Act / SGST Act with effect from the date of such transfer.
 
Registration under Goods and Service Tax (GST) is PAN based and State/UT Specific GST - Ready Reckoner in India Person Not liable for GST Registration [Section 23 of CGST Act]
 

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