GST Jamku AICHAPTER VI
REGISTRATION
Persons liable for registration.
Section 22(1)
Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees:
Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified:
Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.
Explanation.—For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.
Section 22(2)
Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day.
Section 22(3)
Where a business carried on by a taxable person registered under this 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.
Section 22(4)
Notwithstanding anything contained in sub-sections (1) and (3), 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.
Explanation.— For the purposes of this section,—
(i) the expression "aggregate turnover" shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
(iii) the expression "special category States" shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
Registration Requirements under the Goods and Services Tax (GST) Act Simplified
The Goods and Services Tax (GST) Act outlines the registration criteria for suppliers. The registration is mandatory for those engaging in taxable supplies of goods or services with aggregate turnovers exceeding specified thresholds. We break down the key provisions of this Act to make it easier to understand.
Section 22(1): Registration Thresholds
Every supplier must register under this Act in the respective State or Union Territory, excluding special category States, if their aggregate turnover in a financial year exceeds twenty lakh rupees.
Suppliers in special category States need to register if their aggregate turnover exceeds ten lakh rupees. The Government has the authority to revise these thresholds, considering recommendations from the Council and at the request of special category States.
The Government can, upon State request and Council recommendations, increase the aggregate turnover threshold for suppliers exclusively dealing in goods from twenty lakh rupees to a maximum of forty lakh rupees.
Explanation: The term "engaged exclusively in the supply of goods" includes those involved in exempt supply of services related to extending deposits, loans, or advances, where the consideration is represented by interest or discount.
Section 22(2): Transition from Existing Law
Every person registered or licensed under previous laws must register under the GST Act starting from the appointed day.
Section 22(3): Business Transfer
When a taxable person's business is transferred, whether through succession or otherwise, the transferee becomes liable for registration from the date of transfer.
Section 22(4): Special Cases of Transfer
In cases of transfer due to schemes like amalgamation or demerger of companies, the transferee is liable for registration from the date the Registrar of Companies issues a certificate of incorporation.
Explanation for Section 22:
Subsection (i): "Aggregate turnover" includes all supplies made by the taxable person, either on their account or on behalf of all their principals.
Subsection (ii): Goods supplied by a registered job worker after job completion are considered supplied by the principal under Section 143, and their value doesn't count towards the job worker's aggregate turnover.
Subsection (iii): "Special category States" refers to specific States, excluding Jammu and Kashmir, Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim, and Uttarakhand, as specified in Article 279A(4)(g) of the Constitution.