Section 22 states that Supplier shall be liable to be registered under GST in various circumstances.

A taxable person is liable for registration under GST in following cases

i) On crossing of threshold Limit of Aggregate Turnover (AT) u/s 22(1)

ii) Person registered under earlier law shall be liable to be registered under GST u/s 22(2)

iii) Transferee shall be liable to be registered on Transfer of Business on succession or otherwise u/s 22(3)

iv) Transferee shall be liable to registered on Amalgamation or Demerger u/s 22(4)

v) Compulsory Registration u/s 24

vi) Voluntary Registration u/s 25(3)

Question & Answer

Supplier shall be liable to be registered under GST if his AT exceeds threshold limit as given below.

Section 22(1)

Every supplier shall be liable to be registered under this Act

in the State/UT from where he makes a taxable supply of goods or services or both as follows

Refer Section 2(105) for meaning of Supplier

State wise separate registration is required

Person is liable to take a registration separately for each of the states where he has a business operation and is liable to pay GST u/s 22(1)

Explanation (iii) to Section 22

“special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution [1][except the State of Jammu and Kashmir] [2][and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand]

As per Article 279A(4)(g) of the Constitution, there are 11 Special Category States, namely, Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Hence as per Explanation (iii) to Section 22, Special category States shall be

Manipur, Mizoram, Nagaland and Tripura.

Accordingly, threshold limit remains

Rs.10 for the States of Manipur, Mizoram, Nagaland and Tripura.

Rs.20 for other states

Question & Answer

Aggregate Turnover has been defined u/s 2(6)

As person section 2(6) AT Includes

• Taxable and Exempt Supplies to outside person
• Exports of goods or services or both
• Inter-state supplies of all branches having same PAN

AT excludes

(i) central tax, State tax, Union territory tax, integrated tax and cess;

(ii) Inward supplies on which tax is payable under RCM

Non GST and Exempt supply shall be included in AT for determining threshold limit.

Explanation to Section 22 - For this section, it also defines

(i) AT shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

(ii) 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 value of such goods shall not be included in the AT of the registered job worker;

After completion of job work, supply by registered job worker shall be treated as supply of Principals.

Supply by agent on behalf of principal, shall be treated as supply of Agent.

Refer section u/s 2(5) for meaning of agent

Refer section 2(107) for meaning of taxable person

Question & Answer

[3][2^nd Proviso to Section 22(1)

at the request of a special category State

Govt. may enhance AT from Rs.10 lacs to such amount, not exceeding Rs.20 lacs

and subject to such conditions and limitations, as may be so notified.

[4][3^rd Proviso to Section 22(1)

Govt. may enhance threshold limit from Rs. 20 lacs to such amount not exceeding Rs.40 lacs

in case of supplier engaged exclusively in the supply of goods,

subject to such conditions and limitations, as may be notified.

Meaning of Person Exclusively engaged in supply of Goods

Explanation to section 22(1).

For this sub-section, a person shall be considered to be engaged exclusively in the supply of goods

even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]

Notification No. 10/2019-Central Tax dt. 07-03-2019 has been issued u/s 23(2) which exempts person from registration if he is engaged in exclusive supply of goods and whose AT in the FY does not exceed Rs.40 lacs and except

(a) he is required to take compulsory registration u/s 24;

(b) he is engaged in following supplies of goods

(c) he is engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand;

(d) persons taking voluntary u/s 25(3), or RP who intend to continue with their registration under the said Act.

For complete notification, please refer above notification.

Interstate supply are already covered under compulsory registration.

As per section 22(1) read with Notification No. 10/2019-Central Tax dt. 07-03-2019,

Every supplier shall be liable to be registered under this Act

in the State/UT from where he makes a taxable supply of goods or services or both

if his aggregate turnover in a financial year exceeds following threshold limit.

SN

States

Threshold limit

For supplier engaged exclusively in “supply of goods”

1

Tripura, Mizoram, Manipur, Nagaland

Rs.10 lacs

2

Uttarakhand, Sikkim, Arunachal Pradesh, Meghalaya, Puducherry, Telangana

Rs.20 lacs

3

Other States

Rs.40 lacs

For supplier engaged in “supply of services” or both “goods and services”

1

Manipur, Mizoram, Nagaland, Tripura

Rs.10 lacs

2

Other States

Rs.20 lacs

Increased threshold limit of Rs.40 for registration shall only apply if all conditions of N No. 10/2019-Central Tax are fulfilled.

For notified supplies of goods as per N No. 10/2019-Central Tax, Rs.40 lacs limit shall not apply.

Supply within same state between Principal Place and Additional Place shall not be treated as supply under GST.

Lower threshold limit shall apply if registration is required in more than one state

If a person with places of business in different States across India has one branch in a Special Category State, the threshold limit for GST registration will be Rs.10 lakh/Rs.20 lacs.

However, in case he makes exempt/non-taxable supply from a Special Category State and taxable supplies from a State other than Special Category State, the threshold limit shall not be so reduced.

Question & Answer

Supplier must make at least one taxable supply for liable to be registered. If supplier makes all exempt supplies, them he shall not be liable to be registered under GST by virtue of Section 23(1).

Question & Answer

A person is required to obtain registration with respect to his each place of business in India from where a taxable supply has taken place.

However, supplier is not liable to obtain registration in a State/UT from where he makes an exempt/non-taxable supply.

Question & Answer

Section 24(i) persons making any inter-State taxable supply

Section 24(i) requires compulsory registration of person who is making any inter-state taxable supply of goods even if his aggregate turnover does not exceed threshold limit.

However, some exemptions from registration were given u/s 23(2). For complete guide refer para 24.2

Question & Answer

Section 24(ii) casual taxable persons making taxable supply

Section 24(ii) requires compulsory registration of CTP who is making taxable supplies, even if his aggregate turnover does not exceed threshold limit.

However, some exemptions from registration were given u/s 23(2). For complete guide refer para 24.3

Section 24(iii) persons who are required to pay tax under reverse charge

Section 24(iii) requires compulsory registration of person who is required to pay tax under RCM on inward supplies, even if his aggregate turnover does not exceed threshold limit.

No threshold limit of AT will apply to person who is required to pay Tax under RCM u/s 9(3).

Such Person must be registered even if there are no outward supplies.

For complete guide, refer para 24.4

Question & Answer

Section 24(vii) persons who make taxable supply of goods or services or both

on behalf of other taxable persons

whether as an agent or otherwise

Agent of taxable person must be registered without applying threshold limit.

For complete guide, refer para 24.8

Question & Answer

Extract of Circular No. 109/28/2019-GST, dated 22-7-2019

Issue 2. A RWA has aggregate turnover of Rs.20 lakh or less in a FY. Is it required to take registration and pay GST on maintenance charges if the amount of such charges is more than Rs. 7500/- per month per member?

Clarification: No. If aggregate turnover of an RWA does not exceed Rs.20 Lakh in a FY, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds Rs. 7500/- per month per member.

RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than Rs. 7500/- per month per member and the annual aggregate turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more

Section 22(2)

Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

Question & Answer

Section 22(3)

Where a business carried on by a taxable person registered under this Act

is transferred, whether on account of succession or otherwise,

to another person as a going concern, the transferee or the successor,

shall be liable to be registered with effect from the date of such transfer or succession.

Extract of Circular No. 96/15/2019-GST dt. 28-03-2019

3a. Registration liability of the transferee / successor

As per 22(3) of the CGST Act, the transferee or the successor, shall be liable to be registered wef the date of such transfer or succession, where a business is transferred to another person for any reasons including death of the proprietor.

While filing application in GST REG-01 electronically, the applicant is required to mention the reason to obtain registration as “death of the proprietor”

Question & Answer

Section 22(4)

Notwithstanding anything contained in sub-sections (1) and (3),

in a case of transfer on amalgamation, demerger of two or more companies pursuant to an order of a HC, Tribunal or otherwise,

transferee shall be liable to be registered, wef the date on which the ROC issues a certificate of incorporation giving effect to such order of the HC or Tribunal.

Question & Answer