01 Dec 2022

GST REGISTRATION

GST REGISTRATION

GST REGISTRATION

Registration of any business entity under the GST Law implies obtaining a unique number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input tax credit for the taxes on his inward supplies. Without registration, a person cannot do the same.

 

Which section is registration under GST?

 

The provision of GST registration has been prescribed under chapter VI of the CGST Act, 2017 and Section 22 to Section 30 of the CGST Act, deals with the registration by every supplier of goods and services.

 

 

Liability for Registration (Section 22)
 

According to Section to 22(1) of the CGST Act, 2017, If the Supplier makes a taxable supply of goods or service or both from his State or Union territory and his aggregate turnover in a financial year exceeds 20 lakhs rupees, he shall be liable to be registered. However, if such person makes taxable supply from any of the special category of states, he shall be liable to be registered if his aggregate turnover in a financial year exceeds 10 lakhs rupees. However, as per Amendment act 2018, the threshold limit has been increased to 20 lakhs rupees for seven specified Category of states.

 

Threshold limit for registration for those engaged in exclusive supply of goods has been enhanced to 40 lakh rupees. However, such persons who would not be granted the threshold limit of 40 lakhs includes such persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand , any Person who is required to take compulsory registration under section 24, Suppliers of Ice cream and other edible ice, whether or not containing cocoa, Pan masala and Tobacco and manufactured tobacco substitutes.

 

Every person who is registered or holds a license or registration under any existing indirect tax law on the day immediately preceding the appointed day i.e. date on which the GST Act came into force, shall be liable to be registered under this Act with effect from the appointed day.
 

Aggregate turnover
 

The aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, Integrated tax and cess. Ads by
 

Special category of states having threshold limit of 10 Lakh
 

Manipur, Mizoram, Tripura, Nagaland
 

Special category of states having threshold limit of 20 Lakh (After amendment)
 

Jammu & Kashmir, Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, Uttarakhand
 

*Kerela and Telangana has maintained status quo and has kept their threshold for GST Registration in case of goods at Rs. 20 Lakhs.
 

 

A Summary on the various threshold limits have been given below:
 

Supply
 

Threshold up to 10 lacs

Threshold up to 20 lacs

Threshold up to 40 lacs

Supply of goods

Special Category of states as specified above

Seven Special      Category of states as specified above

All other States
 

Supply of service

Special Category of states as specified above

All other states and Union territories

Not applicable
 

Supply of goods and of service

Special Category of states as specified above

All other states and Union territories

Not applicable

 

Persons not liable to registration (Section 23):

  • Any person engaged exclusively in a supply that is not liable to tax or is wholly exempt from tax under the GST Act
  • An agriculturist, who is supplying produce out of cultivation of land.