Every supplier whose aggregate turnover in a financial year exceeds twenty lakh rupees shall be liable to be registered under the Goods and Service Tax. He will be registered in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both.
In case where a person makes taxable supply of goods or services or both from a special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
Following States have been declared as special category States:
In any tax system, registration is the most fundamental requirement for identification of tax payers ensuring tax compliance in the economy. 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 can neither collect tax from his customers nor claim any input Tax Credit of tax paid by him
Persons Liable to register
Section 22 of the CGST Act, 2017 specifies the list of persons liable for registration and section 24 of the CGST Act, 2017 lists categories of persons who are required specifically to take registration even if they are not covered under section 22 of the Act. Following is a summarised list:
Supplier: Supplier of taxable goods or services or both exceeding the specified threshold limit of Rs. 10 lakhs (for special category States) and Rs. 20 lakhs for other states and Union territories
Licensee: Every person who is a registered licensee or holds a license under an existing law, on the day immediately preceding the appointed day i.e 1st July 2017.
Transferee: Where a business, which is carried by a taxable person is transferred as a going concern shall be liable to be registered with effect from the date of such transfer or succession
Transferee under a scheme: 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
Interstate supplier: An interstate supplier is compulsorily required to get registered under GST
Casual Taxable person: 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 is termed as a casual taxable person.