GST REGISTRATION (Sec 22)

People who are liable for registration under section 22 of the GST Act will be discussed on
different grounds to understand the implications of registration under this section.

The statutory provisions coming under sec 22 shall be discussed as

1) SEC 22(1):

Every supplier comes under this act in the State or Union territory other than
special category states, where person makes turnover more than 20 lakhs in a
financial year for a supply of taxable goods and services.

For the special category States threshold limit is reduced to rupees 10 lakhs.

Eg: 1.1
Mr. Umesh Yadav runs retail garment store in Bangalore and purchase
finish products from Delhi. The aggregate turnover for the financial year 2017
was 30 lakhs. Thus he is liable to be registered under the GST Act in the State &
Union Territory.

Eg: 1.2
Mr. Y has wholesale business who deals with dry fruits. He supplies from
Assam to Mumbai. His turnover must be more than 10 lakhs then he is liable to be
registered under the act because he is a supplier from a special category state so it
cut down to 10 lakhs.

2) SEC 22(2):

Every person on the day of appointed or holds a license or registered day will be
applicable under existing law with the immediate effect.

Eg: 2.1
Mr. M started commences business on Jan 1st 2017 and immediately he
will be liable to pay tax from day of registration.

3) SEC 22(3):

When a business of a taxable person registered, under the Act is transferred due to
succession shall be liable to registered & applicable for law from the date of such
transfer or succession.
 Eg: 3.1
Mr. Shikhar Dhawan is a taxable person registered under this act due to
some reason. His son might become the successor, then he shall be liable to
registered with effect from the date of such transfer or succession.

4) SEC 22(4):

In a case of transfer pursuant to sanction of a scheme or an arrangement of

amalgamation or demented of two or more companies according to the order of
high court, the transfer shall be liable to be registered from the date on which the
registrar of companies issues a certificate of incorporation such order of high
court.

5) SEC 22(5):

Aggregate Turnover includes the total supplies made by the taxable person by him
or his successor in his account.
Special Category States shall mean as states defined as under Sub-clause (g) of
clause 4 of article 279A of the Constitution.

ANALYSIS:

1) Threshold limit for registration:

 Suppliers of Goods or Services or both should be registered.
 From the states or union territories where supply actually happens.
 Where his turnover exceeds rupees 20 lakh.
 Where the threshold limit is reduced to rupees 10 lakh in case of Special Category States
which comprises of- Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram,
Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

2) Aggregate Turnover:
The term aggregate turnover is defined under section 2(6) of GST Act.
The aggregate turnover depends on the value of outward supplies i.e;
 Taxable supplies
 Exempt supplies
 Exports
 Inter-state supplies of persons having same PAN number shall be computed on all India
basis.
 Other factors coming under are;
  CGST
 SGST
 UTGST
 IGST
 Compensation cess.
 Value of inward supplies on which tax is payable under reverse charge.
To understand the term Aggregate Turnover we can use different instances;
A. Aggregate Turnover to include total turnover of all branches with same PAN.
If in case, A dealer X has two offices one in Bangalore and another in Hyderabad and to
determine whether X is liable for registration, both the offices turnover is taken to see if it
exceeds RS 20 lakhs and it will be reduced to RS 10 lakhs if any of the office is in special
category states.
If they meet the threshold limit, then X is liable for registration.

B. Value of expected goods/services, exempted goods/services, interstate supplies between

district persons having same PAN to be included in aggregate turnover.
If A dealer supplying of machine oil as well as petrol wherein machine oil is taxable and
petrol is not taxable under GST.
For the purpose of registration, a need to aggregate both taxable and nontaxable services
and see the turnover is exceeding RS 20 lakhs. If yes, he is liable for registration.

C. Aggregate turnover include all supplies made by the taxable person whether on his own
account or made on behalf of all his principals.
When Silk Enterprises appoints M/S George & associates as its agent and all supplies
made by M/S George & associates will be included in the aggregate turnover of M/S
George & associates.

D. Aggregate Turnover V/S Turnover in a State

Aggregate Turnover is used for determining the threshold limit for registration along with
eligibility for composition scheme.
Whereas, levy under composition scheme will be calculated in the basis of “Turnover in
the State”

3) Registration requires only for a place of business from where taxable supply takes
place.
A person should be registered with respect to his each place of business in India from
where taxable supply has taken place. So a supplier is not liable to obtain registration if
his aggregate turnover consists exclusive of goods and services.
4) Tax payers registered under earlier indirect tax laws required to migrate

 All the taxpayers who had been registered in earlier indirect tax law are liable to
be registered under GST which effect from appointed day on 22nd July, 2017.
 Such taxpayers will be issued with a provisioned ID & Password by their
respective tax department to login on GST common portal. They need to fill up
the required details & upload the required documents. Later on they will be
provided the required details on ARN (Application Reference Number) are
communicated to them.
 Upon enrollment the said person will be granted a provision registration
certificate & they would receive a provision GSTIN which will be available in
common portal
 Final registration certificate & GSTIN will be granted within 6 months of the
appointed day.

Taxpayer obtains Provisional Taxpayer logins to GST Completes

id and password from enrolment process
Common Portal, and uploads
“www.aces.gov.in ” or State
“www.gst.gov.in” documents
VAT Authorities

Taxpayer obtains Gets Application Reference

provisional GSTIN on Number
appointed date

5) Person liable for registration in case of transfer of business.

When the business is transferred, pursuant to sanction of a scheme/ arrangement for

amalgamation/ de-merger of 2 or more companies, pursuant to an order of high court/
tribunal, the transfer is to be registered with effect from the date on which the register of
companies will be issuing a certificate of incorporation giving effect to such order.