Compulsory Registration under the GST Law

The requirement of compulsory registartion could be broken down into 2 parts as below:

Part A Compulsory registration under GST law basis the turnover of a person

Part B - Compulsary registration irrespective of turnover

Below is provided a brief insights into the above said categories:

A. Compulsory registration under GST law basis the turnover of person - As per section 22 of the CGST Act, 2017, a person with an annual turnover of up to Rs. 20 lakhs would not be required to take registration in the GST regime, unless it voluntarily chooses to do so. The threshhold limit is Rs. 10 lakhs for the North Eastern States.

B. Compulsary registration irrespective of turnover - As per Section 24 of the CGST Act, 2017, the below category of persons shall be required to be registered compulsorily irrespective of the aforesaid threshold limit:

  1. persons making any inter-State taxable supply;
  2. casual taxable persons (As per the law, a ‘Casual Taxable Person’ is a person who occasionally undertakes transactions involving 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.)
  3. Persons who are required to pay tax under reverse charge;
  4. Electronic commerce operators required to pay tax under sub-section (5) of section 9 of the CGST Act, 2017;
  5. Non-resident taxable persons;
  6. Persons who are required to deduct tax under section 51 of the CGST Act, 2017 i.e who has to make TDS compliances under GST law
  7. Persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise;
  8. Input service distributor 
  9. Persons who are required to collect tax under section 52;
  10. An electronic commerce operator
  11. Every person supplying online information and data base retrieval services (OIDAR) 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 Central Government or a State Government on the recommendations of the GST Council