There are provisions in the Central Goods and Service Tax (CGST) Act, 2017 that pertain to persons who are liable for acquiring GST registration and provisions that pertain to obligatory GST registration. These provisions may be found in sections 22 and 24, respectively. Both of the provisions that were discussed earlier are explained in this article.
Person Liable For Obtaining GST Registration
In accordance with the provisions of section 22 of the Central Goods and Service Tax (CGST) Act, 2017, the following individuals are required to collect information regarding their GST registration:
- According to Notification No. 10/2019-Central Tax, issued 07.03.2019, a supplier who is engaged in the exclusive supply of products and whose aggregate turnover in the financial year includes more than forty lakh rupees is required to seek GST registration in the state or union territory from whence the supply is begun.
- A supplier who is involved in providing a taxable supply of goods is needed to seek GST registration in the event that the aggregate turnover in a given fiscal year exceeds INR 20/10 lakhs. This requirement applies to cases where the state falls within the special category. Puducherry, Meghalaya, Mizoram, Tripura, Manipur, Sikkim, Nagaland, Arunachal Pradesh, and Uttarakhand are among the special category states that have chosen to implement a turnover restriction of Rs 20 lakhs. On the other hand, Kerala and Telangana have chosen to keep the status quo, which is a limit of Rs 10 lakhs.
- If the total turnover of a supplier within a given fiscal year is greater than twenty lakhs, then the supplier is obliged to obtain GST registration. This is because the supplier is engaged in the provision of taxable services.
- If a supplier is engaged in providing a taxable supply of services and the aggregate turnover of the supplier’s business in a given fiscal year is greater than 10 lakhs, then the supplier is required to seek GST registration in the state that falls under the special category.
- On the day immediately preceding the appointment date, individuals who are registered under the law that was in effect prior to the appointment date are eligible to get GST registration.
- It is the responsibility of the transferee or the successor to get GST registration whenever a registered taxable person transfers a business to another person on a continuing concern basis. This is true regardless of whether the transfer is due to succession or for some other reason.
- The transfer of a corporation in the event of an amalgamation or demerger in line with an order issued by a high court, tribunal, or other authority.
Compulsory GST Registration
Section 24 of the Central Goods and Service Tax (CGST) Act, 2017, includes provisions that require businesses to register their goods and services electronically. The following is a list of the categories of individuals who are required to gather information through compulsory registration:
- Any individual who is engaged in the interstate supply of commodities or services that are subject to taxation, or both.
- A person who is taxable on a casual basis who engages in taxable supply.
- Those individuals who are required to pay taxes under the reverse charge procedure.
- A taxable person who is not a resident and who is engaged in providing taxable supplies.
- One who is required to pay tax in accordance with subsection 9(5) of the Act.
- Someone who is responsible for tax deductions at the source (TDS).
- The distributor of input services.
- Operator of an online store.
- A person who is required to collect tax at source (TCS) and is involved in the business of delivering products or services or both through an e-commerce operator.
- A person who is engaged in providing online information and database access or retrieval services to an individual who is not registered from a location outside of India.
- Those individuals who are involved in the taxable provision of goods or services, or both, on behalf of another registered taxable person, whether in the capacity of an agent or in any other configuration.
It must be noted that categories of persons covered under compulsory registration are mandatorily required to obtain registration regardless of the quantum of turnover.