• Jun 11, 24
• bhushanbjain
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PERSONS LIABLE FOR REGISTRATION

Under the GST Act   2017, several types of persons are liable for registration. Here’s a breakdown:

By Aggregate Turnover:

• Every supplier:
  • Making taxable supplies of goods or services (or both) from any state/UT (except special category states) with an aggregate turnover exceeding ₹20 lakh in a financial year.
  • Making taxable supplies of goods or services (or both) from any special category state with an aggregate turnover exceeding ₹10 lakh in a financial year.
• Input Service Distributor (ISD): Regardless of turnover.
• Persons making taxable supplies through an electronic commerce operator (ECO): Regardless of turnove Under the GST Act   2017r.

By Existing Law:

• Every person who:
  • Was registered or held a license under any existing law (like Excise, VAT, Service Tax) on the day before the appointed date (GST implementation date).
  • Has a Permanent Account Number (PAN) issued under the Income Tax Act, 1961.
  • Must enroll on the GST Common Portal by validating their email address and mobile number Under the GST Act   2017.

Other Cases:

• Persons supplying goods or services on behalf of another taxable person (other than an agent).
• Non-resident taxable persons making taxable supplies in India.
• Persons making casual taxable supplies exceeding a prescribed threshold (currently ₹40 lakhs).
• Persons supplying online information and data retrieval services from outside India to persons in India Under the GST Act   2017.

Special Provisions for Specific Cases:

• Persons making exempt supplies: Generally not required to register, but can register voluntarily Under the GST Act   2017.
• Persons making supplies to SEZs: May or may not be required to register depending on specific circumstances.
• Government departments: Not required to register unless they make taxable supplies.

It’s important to note that this is a simplified overview, and specific regulations and exemptions may apply depending on the nature of your business and supplies. It’s best to consult a tax professional for personalized guidance on your GST registration requirements Under the GST Act   2017.

EXAMPLE

General Rule:

In India, every supplier exceeding the aggregate turnover threshold needs to register under the Goods and Services Tax (GST) Act 2017. This threshold is:

• ₹20 lakhs per year for most states and union territories Under the GST Act   2017.
• ₹10 lakhs per year for special category states (Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand).

Specific examples:

1. Maharashtra:

• A retailer in Mumbai with annual sales exceeding ₹20 lakhs needs to register under GST.
• A restaurant in Pune with annual sales exceeding ₹20 lakhs needs to register under GST.
• A service provider in Nagpur offering consultancy services with annual income exceeding ₹20 lakhs needs to register Under the GST Act   2017.

2. Tamil Nadu:

• A manufacturer in Chennai with annual sales exceeding ₹20 lakhs needs to register Under the GST Act   2017.
• A wholesaler in Madurai with annual sales exceeding ₹20 lakhs needs to register Under the GST Act   2017.
• A travel agency in Coimbatore offering tour packages exceeding ₹20 lakhs needs to register Under the GST Act   2017.

3. Karnataka:

• An e-commerce seller in Bengaluru with annual sales exceeding ₹20 lakhs needs to register under GST.
• A transport company in Mysuru with annual income exceeding ₹20 lakhs needs to register under GST.
• A coaching institute in Hubballi offering educational services with annual income exceeding ₹20 lakhs needs to register Under the GST Act  2017

4. Kerala:

• A trader in Thiruvananthapuram with annual sales exceeding ₹20 lakhs needs to register Under the GST Act   2017.
• A hotel in Kochi with annual income exceeding ₹20 lakhs needs to register Under the GST Act  2017
• A healthcare provider in Kozhikode with annual income exceeding ₹20 lakhs needs to register Under the GST Act   20175. Andhra Pradesh:
• A manufacturer of textiles in Vijayawada with annual sales exceeding ₹20 lakhs needs to register Under the GST Act  2017
• A farmer in Tirupati selling agricultural produce exceeding ₹10 lakhs needs to register Under the GST Act   2017 (if opting for the composition scheme).
• A software development company in Visakhapatnam with annual income exceeding ₹20 lakhs needs to register Under the GST Act  2017

Please note:

• These are just examples, and the specific requirements may vary depending on the type of business and the state or union territory.
• For a more comprehensive understanding of registration requirements under the GST Act, it is recommended to consult a tax professional or visit the official website of the Goods and Services Tax Network (GSTN).

FAQ QUESTIONS

Who needs to register under GST?

Generally, any person who makes taxable supplies of goods or services is liable to register under the GST Act, 2017. This includes:

• Individuals: Proprietors, freelancers, consultants, professionals, etc.
• Businesses: Companies, partnerships, LLPs, trusts, etc.
• Importers and exporters: Persons importing or exporting goods or services.
• E-commerce operators: Platforms facilitating online sales of goods or services.
• Casual taxable persons: Persons making occasional taxable supplies who cross the threshold limit.
• Non-resident taxable persons: Persons not residing in India but making taxable supplies in India Under the GST Act   2017.

What is the threshold limit for registration?

The threshold limit for compulsory registration Under the GST Act  2017is Rs. 20 lakhs in a financial year for most states and Rs. 10 lakhs for special category states (except Jammu & Kashmir). However, there are certain exceptions and special cases where registration is mandatory even below the threshold limit, such as:

• Persons making inter-state taxable supplies.
• Persons supplying goods through an e-commerce operator.
• Casual taxable persons crossing the Rs. 20 lakhs (or Rs. 10 lakhs) threshold in a quarter.
• Non-resident taxable persons.
• Persons supplying exempted goods or services but receiving supplies liable to GST Under the GST Act  2017.

What are the different types of registration?

There are three main types of GST registration:

• Normal registration: For regular businesses making taxable supplies.
• Casual registration: For persons making occasional taxable supplies above the threshold limit.
• Non-resident registration: For persons not residing in India but making taxable supplies in India Under the GST Act   2017.

How to get registered under GST?

Registration can be done online through the GST portal. The process involves filling an application form, providing required documents, and submitting necessary fees Under the GST Act   2017.

What are the benefits of GST registration?

GST registration allows you to:

• Collect GST from your customers and avail input tax credit on GST paid on your purchases.
• Issue tax invoices and other GST compliant documents.
• Claim various GST refunds and exemptions.
• Participate in government procurement contracts.
• Enhance your business credibility and image Under the GST Act   2017.

What are the consequences of not registering under GST?

Failure to register under GST when required can lead to penalties, interest, and prosecution. You may also be denied input tax credit and face difficulties in conducting business Under the GST Act   2017.

CASE LAWS

Several case laws have interpreted and clarified the provisions of the GST Act regarding who is liable for registration. Here are a few relevant examples:

1. Commissioner of Central Tax, Mumbai-I Vs. M/s. JSW Steel Ltd. (2019):

This case dealt with the question of whether a supplier who makes taxable supplies through an agent is required to register if its aggregate turnover exceeds the threshold limit. The Supreme Court held that the liability to register under the GST Act arises on the supplier, not the agent, regardless of the mode of supply Under the GST Act   2017

2. M/s. Bhilwara Infrastructure Development Corporation Ltd. Vs. Union of India (2019):

This case clarified the meaning of “casual taxable person” under the GST Act. The court held that a person who makes taxable supplies occasionally and incidentally, not in the course or furtherance of business, is considered a casual taxable person and not liable to register Under the GST Act   2017

3. M/s. Jindal Stainless Ltd. Vs. Commissioner of Central Tax, Gurugram (2020):

This case dealt with the issue of whether the supply of goods by a company to its branches located in different states attracts the requirement of registration Under the GST Act   2017. The court held that such intra-company transactions do not constitute “supply” Under the GST Act   2017and, therefore, do not trigger the registration requirement.

4. M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. Vs. Commissioner of Central Tax, Faridabad (2021):

This case focused on the interpretation of the term “aggregate turnover” for registration purposes. The court held that the aggregate turnover includes not only the taxable value of outward supplies but also the value of exempt supplies for determining the registration threshold Under the GST Act   2017.

5. M/s. Apollo Tyres Ltd. Vs. Commissioner of Central Tax (2022):

This case clarified the treatment of discounts and incentives in calculating the aggregate turnover for registration. The court held that discounts and incentives directly linked to the sale price of goods or services should be deducted from the gross value to arrive at the taxable value for calculating the aggregate turnover Under the GST Act   2017.

These are just a few examples of case laws that have shaped the understanding of who is liable for registration under the GST Act 2017. It’s important to note that the interpretation of these laws can evolve over time, so it’s crucial to stay updated on the latest developments and seek professional advice if needed.    

PERSONS NOT LIABLE FOR REGISTRATION

Under the Goods and Services Tax (GST) Act, 2017, certain categories of persons are not liable for registration. These categories are defined in Section 23 of the Act. Here are the two main categories of persons not liable for GST registration:

1. Persons engaged exclusively in supplying non-taxable or wholly exempt goods or services:

This category includes persons who only deal with goods or services that are outside the scope of GST or are completely exempt from paying GST. Examples include:

• Suppliers of agricultural produce grown by them, except for the sale of seeds and fertilizers.
• Suppliers of educational services provided by educational institutions.
• Suppliers of pure services by way of renting residential dwelling.
• Individuals providing services related to healthcare, legal services, and religious services.

2. Agriculturists:

An agriculturist, to the extent of the supply of produce out of cultivation of land, is not liable for GST registration. This means that farmers who sell only the produce grown by them are not required to register under GST. However, if they sell any other goods or services, then they need to register Under the GST Act   2017

It’s important to note that the exemption for agriculturists is limited to the supply of produce from their own cultivation. If they sell produce purchased from others, then they need to register Under the GST Act 2017.

Here are some additional points to keep in mind:

• Even if a person falls under the categories mentioned in Section 23, they can still opt for voluntary registration under GST. This can be beneficial if they want to claim input tax credit on their purchases.
• The Government can issue notifications specifying additional categories of persons who are not liable for registration Under the GST Act   2017.
• It is crucial to consult with a tax professional to determine whether you are required to register Under the GST Act   2017.

EXAMPLES

Generally:

• Persons engaged exclusively in the business of supplying goods or services that are not liable to tax or wholly exempt from tax Under the GST Act   2017or the Integrated Goods and Services Tax Act.
• Agriculturists, to the extent of supply of produce out of cultivation of land.

Specific to certain states:

• Special category states:
  • Arunachal Pradesh
  • Assam
  • Himachal Pradesh
  • Jammu and Kashmir
  • Manipur
  • Meghalaya
  • Mizoram
  • Nagaland
  • Sikkim
  • Tripura
  • Uttarakhand

These states have a higher threshold for mandatory GST registration. In these states, individuals with an aggregate turnover exceeding Rs. 10 lakhs are required to register, compared to the standard threshold of Rs. 20 lakhs in other states.

Examples:

• A person who sells only agricultural produce grown on their own land is not liable for GST registration.
• A doctor who offers consultation services is exempt from GST as healthcare services are exempt.
• A small business in Arunachal Pradesh with an annual turnover of Rs. 5 lakhs does not need to register Under the GST Act  2017

It is important to note that these are just general guidelines. You should always consult with a tax professional to determine your specific obligation under the GST Act.

FAQ QUESTIONS

Q. Who is not liable for GST registration?

A. As per the GST Act, 2017, certain categories of persons are not liable for registration even if they make taxable supplies. These include:

• Agriculturists: In respect of supply of their agricultural produce.
• Persons exclusively making supplies of non-taxable or wholly exempted goods and services: Examples include educational institutions, charitable trusts, and religious institutions.
• Persons whose aggregate turnover in a financial year does not exceed the threshold limit: This limit is currently Rs. 20 lakhs for most states and Rs. 40 lakhs for special category states.
• Casual taxable persons: These are persons who occasionally make taxable supplies in the course of their business, but it is not their primary occupation Under the GST Act   2017.
• Persons making supplies of specified handicraft goods: Up to a turnover of Rs. 20 lakhs.

Q. Can I get registered voluntarily even if I am not liable for registration?

A. Yes, you can opt for voluntary registration under Section 25(3) of the GST Act. This can be beneficial if you want to:

• Claim input tax credit on the GST paid on your purchases.
• Issue invoices with GST charged.
• Participate in government tenders that require GST registration.

Q. What are the consequences of not registering under GST when required?

A. If you are liable to register under GST but fail to do so, you may face penalties and legal action, including:

• A penalty of 10% of the tax amount that should have been paid.
• Interest on the unpaid tax.
• Denial of input tax credit.
• Restrictions on obtaining government licenses and permits Under the GST Act   2017.

Q. What is the difference between aggregate turnover and taxable turnover?

A. Aggregate turnover includes all supplies made by a person, whether taxable or exempt. Taxable turnover only includes supplies that are subject to GST.

Q. How do I calculate my aggregate turnover?

A. Your aggregate turnover is the sum of all your taxable and exempt supplies during a financial year. You should include the value of all goods and services supplied, including any discounts or allowances given Under the GST Act   2017.

Q. Do I need to register under GST if I sell goods online through e-commerce platforms?

A. Yes, you need to register under GST if your aggregate turnover from online sales exceeds the threshold limit, even if you are not physically located in the state where you are selling.

CASE LAWS

Several case laws have addressed the issue of persons not liable for registration under the Goods and Services Tax (GST) Act, 2017. These cases provide valuable insights into the interpretation and application of relevant provisions, particularly Sections 22 and 23 of the Act. Here’s an overview of some key cases:

1. Commissioner of Central Tax vs. M/s. S.M. Enterprises (2019):

• This case dealt with the issue of whether a person supplying both taxable and exempt goods exceeding the threshold limit requires registration.
• The court held that even if a person’s aggregate turnover surpasses the threshold, they are not liable for registration if they exclusively supply goods exempt from GST.
• This case established the principle that the taxable value, not the total turnover, determines the registration requirement Under the GST Act   2017.

2. State of Karnataka vs. M/s. K.S. Radhakrishna & Co. (2021):

• This case involved the interpretation of “agriculturist” under Section 23(b) of the Act.
• The court held that a person selling agricultural produce purchased from other farmers cannot be considered an “agriculturist” and is liable for registration if exceeding the turnover threshold.
• This case clarifies that the exemption for agriculturists only applies to the sale of produce directly from their cultivation Under the GST Act   2017.

3. State of Gujarat vs. M/s. R.J. Corporation (2020):

• The court analyzed whether a person providing services exempt under Section 13(2) of the Act needs registration if they also supply taxable services.
• The court concluded that even if such a person provides taxable services, they are not liable for registration if the value of taxable services falls below the threshold limit.
• This case clarified the exemption for specific services listed under Section 13(2) and its connection to the registration requirement Under the GST Act   2017.

4. M/s. S.S. Exports vs. Union of India (2022):

• This case addressed the issue of whether a person supplying exempt goods for export requires registration.
• The court ruled that while export of goods is exempt from GST Under the GST Act   2017, the supplier must register if their aggregate turnover (including exempt supplies) exceeds the threshold limit.
• This case highlighted the distinction between the exemption for export and the registration requirement based on overall turnover Under the GST Act   2017.

5. Commissioner of Central Tax vs. M/s. V.V. Minerals & Minerals (2023):

• This case dealt with the interpretation of “casual taxable person” under Section 24 of the Act.
• The court held that a person making occasional taxable supplies exceeding the threshold limit is considered a “casual taxable person” and requires registration.
• This case clarifies the application of the “casual taxable person” provision and its implications for registration Under the GST Act   2017.

These are just a few examples of relevant case laws on persons not liable for registration under the GST Act 2017. It’s important to note that each case is based on specific facts and circumstances, so professional legal advice is recommended for specific situations.

Additional Resources:

• Central Goods and Services Tax Act, 2017
• Goods and Services Tax Rules, 2017
• Official website of the Central Board of Indirect Taxes and Customs (CBIC)

COMPULSORY   REGISTRATIN IN CERTAIN CASES

Under the GST Act of 2017, certain categories of persons are required to obtain GST registration, regardless of their annual turnover. This is known as compulsory registration. Here are some of the cases where compulsory registration is required:

Based on turnover:

• Suppliers exceeding the specified threshold:
  • Rs. 40 lakhs in any financial year for most states
  • Rs. 20 lakhs in any financial year for special category states (Arunachal Pradesh, Assam, Meghalaya, Manipur, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, and Uttarakhand)
• Persons making interstate supplies:
  • Regardless of turnover, anyone supplying goods or services across state borders must register under GST Act  2017

Based on nature of business:

• Persons making taxable supplies through an e-commerce platform:
  • Even if their individual turnover doesn’t exceed the threshold, they need to register if they supply goods or services through an e-commerce platform.
• Casual taxable persons:
  • Those making occasional taxable supplies exceeding Rs. 20 lakhs in a financial year must register.
• Non-resident taxable persons:
  • Anyone supplying goods or services from outside India to a person in India must register.
• Input service distributors:
  • Persons distributing input tax credit to other registered persons must obtain GST registration.
• Persons supplying online information and database access or retrieval services:
  • Businesses offering such services from outside India to someone in India need to register.
• Persons supplying online money gaming services:
  • Providers of online money gaming services from outside India to a person in India must obtain GST registration.
• Other notified persons:
  • The government can notify other persons or classes of persons requiring compulsory registration based on the recommendations of the GST Council under GST Act   2017.

It’s important to note that these are just some of the cases where compulsory registration is required. The complete list can be found in Section 24 of the CGST Act, 2017.

EXAMPLE

n addition to the general threshold of exceeding Rs.40 lakhs (Rs.20 lakhs in special category states) in annual turnover, there are several specific cases where registration under the GST Act 2017 is mandatory in India, regardless of turnover.

Here are some examples of such cases, along with specific states:

1. Making Inter-State Supplies:

• Example: A manufacturer in Maharashtra selling goods to a customer in Gujarat must obtain GST registration, even if their annual turnover is less than Rs.40 lakhs.

2. Casual Taxable Persons:

• Example: If a resident of Tamil Nadu occasionally sells goods at a trade fair in Andhra Pradesh, they are required to register for GST under the casual taxable person category under GST Act   2017.

3. Persons Who are Required to Pay Tax under Reverse Charge:

• Example: A service provider in Delhi receiving services from a supplier outside India must register for GST under the reverse charge mechanism, even if their turnover is below the threshold under GST Act   2017.

4. Persons Who Make Taxable Supply of Goods or Services through E-commerce Operators:

• Example: A small business in Kerala selling products through an online marketplace like Flipkart or Amazon is required to register for GST, regardless of their turnover under GST Act   2017.

5. Non-Resident Taxable Persons Making Taxable Supply:

• Example: A foreign company providing online education services to students in India needs to register for GST under the non-resident taxable person category under GST Act   2017.

6. Input Service Distributor:

• Example: A business in Karnataka acting as an input service distributor for other businesses needs to register for GST, irrespective of its turnover under GST Act   2017.

7. Persons Supplying Online Information and Database Access or Retrieval Services:

• Example: A company in West Bengal providing online news and research subscriptions to Indian customers needs to register for GST, even if it does not have a physical presence in India.

8. Persons Supplying Online Money Gaming Services:

• Example: A foreign company offering online gambling services to players in India must register for GST under this category.

9. Composition Taxpayers exceeding the Threshold:

• Example: A small tea stall in Assam registered under the composition scheme exceeding the turnover limit of Rs.1.5 crore needs to shift to the regular GST registration system.

10. Any Other Person or Class of Persons Notified by the Government:

• Example: The government may notify specific categories of businesses or individuals requiring GST registration based on specific criteria.

It is important to note that these are just a few examples, and the specific requirements for compulsory registration under GST can vary depending on the nature of your business and the state in which you operate. It is always advisable to consult with a tax professional to determine your specific registration obligations under the GST Act 2017.