Who is required to compulsory register under GST regime?

Who is required to compulsory register under GST regime?
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Who is required to compulsory register under GST regime?

Aspects of registration under the GST regime are covered under section 22 of the CGST Act,2017. As per section 22,

  • Every person who supplies taxable goods and the aggregate turnover exceeds Rs. 40 lakhs in a financial year then shall be liable to register under the GST Act.
  • Every person who supplies taxable services and the aggregate turnover exceeds Rs. 20 lakhs in a financial year then shall be liable to register under the GST Act.

 

Note: If the person supplies taxable goods from any of the special category States and the aggregate turnover exceeds Rs. 20 lakhs in a financial year then shall be liable to register under the GST Act.

Note: If the person supplies taxable services from any of the special category States and the aggregate turnover exceeds Rs. 10 lakhs in a financial year then shall be liable to register under the GST Act.

However, there are certain cases that require compulsory registration under the GST regime even the aggregate turnover in a financial year does not cross the threshold limit required for registration. Let’s understand who all are required to compulsory register under the GST regime based in section 24 of the CGST Act,2017.

As per section 24 of CGST Act,2017 – Compulsory registration in certain cases

  • Any person who enters into an inter-state supply of taxable goods or services or both.

As per section 2(108) of the CGST Act, 2017:-

Taxable Supply means a supply of goods or services or both which is leviable to tax under this Act.”

  • Any casual taxable person enters into the supply of taxable goods or services or both.

As per section 2(20) of the CGST Act, 2017:-

Casual Taxable Person means a person who occasionally undertakes transactions involving the supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.”

  • Any person who is required to pay tax based on reverse charge mechanism under section 9(3) and 9(4) of CGST Act,2017 and section 5(3) or 5(4) of IGST Act,2017.

As per section 2(98) of the CGST Act, 2017:-

Reverse-Charge means the liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9, or under sub-section (3) or subsection (4) of section 5 of the Integrated Goods and Services Tax Act.”

  • Any person who is required to pay tax under section 9(5) of the CGST Act,2017.

As per section 9(5) of the CGST Act, 2017:-

“The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:

Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any
purpose in the taxable territory shall be liable to pay tax:

Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.”

  • Any non-resident taxable person enters into the supply of taxable goods or services or both.

As per section 2(77) of the CGST Act, 2017:-

Non-Resident Taxable Person means any person who occasionally undertakes transactions involving the supply of goods or services or both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India.”

  • Any person who is required to deduct tax u/s 51, whether or not separately registered under this Act.
  • Any person who enters into the supply of taxable goods or services or both on behalf of other taxable persons whether as an agent or otherwise.

As per section 2(5) of the CGST Act, 2017:-

Agent means a person, including a factor, broker, commission agent, arhatia, del credere agent, an auctioneer or any other mercantile agent, by whatever name called, who carries on the business of supply or receipt of goods or services or both on behalf of another.”

Note : Circular 57/31/2018 dated 04.09.18 – Clarifying the scope of Principal-agent relationship in the context of Schedule I of the CGST Act,2017

  • Any Input Service Distributor, whether or not separately registered under this Act.

As per section 2(61) of the CGST Act, 2017:-

Input Service Distributor means an office of the supplier of goods or services or both which receives tax invoices issued under section 31 towards the receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax, State tax, integrated tax or Union territory tax paid on the said services to a supplier of taxable goods or services or both having the same Permanent Account Number as that of the said office.”

  • Any person who supplies goods or services or both, other than supplies specified u/s 9(5), through such electronic commerce operator who is required to collect tax at source u/s 52. 
  • Any electronic commerce operator who is required to collect tax at source under section 52.

As per section 2(45) of the CGST Act, 2017:-

Electronic Commerce Operator” means any person who owns, operates or manages the digital or electronic facility or platform for electronic commerce.”

Note: Before the CGST Amendment Act,2018 all the e-commerce operators were required to get GST registration. But after the amendment only the ones who are required to collect TCS u/s 52 are required to register.

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

 



The article is compiled by CA Ankita Khetan. If you have any queries concerning the above article, please write to us either in the comments section below or email us on info.financepost@gmail.com.

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CA Ankita Khetan