Registration under Goods and Services Tax (GST)

Relevant sections – Section 22, 23 and Section 24 of CGST Act, 2017 as amended.

Goods and services tax registration is state specific and is based on the event of “supply”. The following persons are liable to registration. We can categorise the registration categories as below.

Summary

Under GST law, every person has to obtain GST registration subject to the following threshold limits on the aggregate turnover. If the aggregate turnover exceeds, the below  threshold limit, then the supplier has to obtain GST registration

*Goods would not include Ice cream and other edible ice whether or not containing Cocoa, Pan Masala, Tobacco and manufactured tobacco substitutes. The respective tariff items are given below.

A. New Registration

1. Every supplier has to register with the respective state or Union territory from where he makes the supply of goods or services or both, if the aggregate turnover in a financial year exceeds Rs.20 lakhs.

Threshold limit for exemption

Any person who is engaged in  exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, are exempt from obtaining registration under the GST Act, vide Notification No. 10/2019-Central Tax.

Special Category States

In case of special category states, the turnover limit is Rs.10 lakhs, .i.e. if the aggregate turnover of supply from the respective state exceeds Rs.10 lakhs, then the supplier has to obtain registration under GST.

Special category states as specified in Article 279A(4)(g) of the Constitution of India includes the State of Assam, Arunachal Pradesh, J&K, Himachal Pradesh, Uttarakhand, Manipur, Mizoram, Sikkim, Meghalaya, Nagaland and Tripura

However, explanation (iii) to section 22 of CGST Act, specifically excludes states of Jammu and Kashmir, Arunachal Pradesh, Assam,Himachal Pradesh, Meghalaya,Sikkim and Uttarakhand from the special category states- As per amendment vide CGST Amendment Act ,2018

Aggregate Turnover

Aggregate turnover – it shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.

The supply of goods, after completion of job worker by a registered job worker shall be treated a supply of goods by the principal. The value of such goods shall not be included in the aggregate turnover.

B. Multiple state registration – GST has a state specific registration requirement. A business entity has to register in each of the states from where it makes a taxable supply. Suppose, a business entity has multiple branches in the state, then it has to take registration in each of these states.

C. Existing registration

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.

D. Merger, Acquisitions and Demerger

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, 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.

in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, 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

E. Compulsory registration

The following persons are compulsorily required to get registered under the GST Act. The threshold exemption limit is not applicable for the below category of supplies.

1. Persons making any inter-state Taxable supply.

Exemption- Inter-state supplier of handicraft goods are exempted from compulsory registration till they cross the threshold limit vide Notification No. 3/2018- Integrated Tax

2. Casual taxable persons making taxable supply

3. Persons who are required to pay tax under reverse charge

4. Person who are required to pay tax under sub-section (5) of section 9;

5. Non-resident taxable persons making taxable supply

6. Persons who are required to deduct tax under section 51, whether or not separately registered under this Act

7. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

8. Input Service Distributor, whether or not separately registered under this Act;

9. Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52

10. Every electronic commerce operator [who is required to collect tax at source under section 52

11. Every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person

12. Such other person or class of persons as may be notified by the Government on the recommendations of the Council