GST Registration Requirements, Exceptions, Compulsion and Limits

Persons liable to take GST Registration

As per Section 22 of CGST Act, 2017;

Every supplier is liable to be registered in the state or union territory, from where he makes a taxable supply, if his aggregate turnover in a financial year exceeds Rs. 20 Lakhs

Subject to proviso;

Following State Specific Registration Limits of Supply of Goods or Supply of Services or Both:

States	Supplier engage in supply of Goods only (No Service only Goods)	Supplier engage in supply of Service or Both (Goods & Service)
Manipur, Mizoram, Nagaland, Tripura	10 Lakhs	10 Lakhs
Pondicherry, Uttarakhand, Meghalaya, Arunachal Pradesh, Telangana, Sikkim	20 Lakhs	20 Lakhs
All Other States & Union Territories (UT)	40 Lakhs*#	20 Lakhs

* Following cases 40 Lakh Limit not applicable (Only 10/20 Lakhs Limits Available)

• Supplier Required to take Compulsory Registration.
• Supplier who taken a Voluntary Registration.
• Supplier engaged in following Supply:
  • Ice-Cream or Edible Ice
  • Pan Masala
  • All Tobacco & its Products
  • Fly ash bricks, Fly ash Aggregates, Fly ash Blocks

# If Supplier received a Interest or Discount on Loans or Advances/Deposits (Exempted Supply of Service) is considered as a Supplier of Goods for taking a enhances Turnover limit (40 Lakh).

This will be not disallow the 40 lakh benefit mere a supplier is receiving Interest or Discount on Loans or Deposits even if it is a Supply of Service.

Persons not liable to take GST Registration

As per Section 23 of CGST Act, 2017;

• Supplier is exclusively engaged in supply which is “not liable to tax” or “wholly exempt from tax.”
• An Agriculturist, to the extent of supply of produce out of cultivation of land.
• Person who are only engaged in making supplies on which is tax liable to be paid on “Reverse charge basis” by recipient u/s 9(3).

Agriculturist means as per Section 2(7): an individual or HUF who undertakes cultivation of Land by own labour or by the labour of family or by servants on wages under own or family supervision.

Compulsory GST Registration Requirements

As per Section 24 of CGST Act, 2017;

• Supplier making any Inter-State Taxable Supply (State A to State B)
  • Exceptions: (Following Supplier still not required if T/o limit is less than 20/10 Lakhs)
    • Supplier is making a inter-state Supply of Services. (It Means Goods transfer to other state is Required Compulsory Registration but for service Registration not required till the 10/20 Lakh Limit)
    • Supplier making a inter-state Taxable supplies of Handicraft Goods.
    • Job Worker engaged in making inter-state supply of Services.
• Casual Taxable Person (CTP) making a Taxable Supply
  • Exceptions: if Casual Taxable Person making a Supplies of Handicraft Goods or Handmade Shawls, Stoles etc. till the 10/20 Lakh limit Reached.
• Persons/Suppliers who are required to pay tax under Reverse Charge.
• Persons/Suppliers who are required to pay tax under section 9(5) Ecommerce Operator (Amazon, Flipkart Etc.)
• Non-resident Taxable Person making a Taxable Supply.
• Persons who are required to deduct tax (TDS) under section 51, (Whether it is separately Register or Not)
• Persons/Suppliers who make Taxable supply of Goods or Services or Both on behalf of other (Principal Supplier) as an Agent where Agent is issuing own Invoice (Agency, Franchise Etc.)
• Input Service Distributor (ISD) (Whether it is separately Register or Not)
• Every E-Commerce Operator (Amazon, Flipkart Etc.), who is required to collect tax (TCS) at source under Section 52.
• Supplier who Supply Goods or Services or Both other than Supplies specified in Section 9(5) through Such E-Commerce Operator who are required to Collect TCS under Section 52. (Supplier Supply through Amazon/Flipkart Etc.)
  • Exceptions: Person making Supply of Services is exempted from obtaining registration till 10/20 Lakh Limit.
• Person Supplying OIDAR Service form outside India to person in India (Other than Registered Person/Supplier).
• Any Other Person notified by Central Government.

Other Points take into Consideration

When Business is carried by a taxable person transferred then transferees or successors shall take new registration. It Means This will happen when Demerger taken place, Sale of Business by owner or Taxable Person Died and Business is taken over by Successor Person.

Supply made by agent on behalf of principals to be added in aggregate turnover of Agent.
But Supply made by job worker on behalf of Principals not to be added in aggregate turnover of Job Worker.

You can do GST Registration on GSTN Portal.

Conclusive Summary

Hereabove, we discuss the requirements, exceptions, and limits for GST registration in India. It states that if a supplier’s aggregate turnover in a financial year exceeds Rs. 20 Lakhs, they are required to register for GST. However, there are different registration limits for certain states and types of suppliers.

Also, certain suppliers are not liable to take registration, such as those exclusively engaged in supplies that are not liable to tax or wholly exempt from tax, agriculturists, and persons making supplies on which tax is liable to be paid on a reverse charge basis. It also lists various other categories of persons who are not liable to take registration.

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