Registration under GST Law

Section 22,23&24 of the CGST

Act, 2017

CA.P. Ashwin Kumaar

Contents of Registration Chapter
 Chapter VI of the CGST Act, 2017
 Section 22 to Section 30 of the CGST
Act,2017
 Persons liable for registration
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;]
 Section 22(1) of the CGST Act,2017

When he is liable :
ATO in a FY > 20
Who is liable : Every Supplier
lacs/40lacs/
10 lacs

Where he is liable to get registered: The place where he makes

the taxable SOG/SOS
Supplier- Section 2(105) of the CGST Act , 2017

• Defined “in relation to the goods or

1 services or both.”

• Person supplying the said goods or

2 services or both

• Includes Agent acting on behalf of the

3 supplier in relation to the goods or
services or both
“
Meaning of ATO- Section 2(6) of the CGST
Act,2017

aggregate turnover ”means the aggregate value of all

taxable supplies (excluding the value of inward
supplies on which tax is payable by a person on reverse
charge basis), exempt supplies, exports of goods or
services or both and inter-State supplies of persons
having the same Permanent Account Number, to be
computed on all India basis but excludes central tax,
State tax, Union territory tax, integrated tax and cess;
 Meaning of Aggregate Turnover
Sum total of the following computed on PAN India Basis:
• All taxable supplies
• Exempt supplies

• Export of goods or services or both

• Inter state-supplies of person having
same PAN

• Inward supplies liable to tax under RCM

• Central tax, state tax, UT tax, Integrated
tax & cess.
Meaning Taxable supplies and Exempt supplies

Supply of goods or services or both

which is leviable to tax –Section 2(108) of
the CGST Act, 2017.

Supply of goods or services or both which

attracts :
1.Nil Rate of Tax
2.Wholly Exempt from Tax u/s 11 of the
CGST Act or u/s 6 of the IGST Act, 2017
3.Includes Non taxable supplies –Section
2(47) of the CGST Act,2017.
 ATO to include all supplies whether on own
account or made on behalf of all his principals

Explanation below section 22 of the

CGST Act,2017

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;
 ATO to include all supplies whether on own
account or made on behalf of all his principals

Explanation below section 22 of the

CGST Act,2017

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;
 Explanation (iii) to section 22 of the CGST Act,2017

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
 Meaning of Special Category States

Article 279A(4)(g) of the Constitution of India

There are 11 special category states :

 Arunachal Pradesh
 Assam
 J&K
 Manipur
 Meghalaya
 Mizoram
 Nagaland
 Sikkim
 Tripura
 Himachal Pradesh
 Uttarakhand
For the purpose of section 22 of the CGST Act,2017
Meaning of SCS

Mnemonic to remember: TN M2urukku

T- Tripura
N-Nagaland
M-Mizoram
M-Manipur
 3rd proviso to section 22 (1) of the CGST Act,2017

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.

Notification No.10/2019 CT dt. 07.03.2019

Exemption from obtaining Reg. upto a ATO THL 40 lacs sub to 4

conditions

C1: Not required to take compulsory reg under section 24 inter-

alia should not engage in inter-state supply of taxable goods

C2 : Not Engaged in SOG of TI2P –Tobacco and manufactured

tobacco substitutes, ice cream, idble ice whether containing cocoa
or not, pan masala
C3:Not Engaged in intra-state supplies in A STUMP and TN
Murukku

C4: Not taken Voluntary registration u/s 25(3)

Diagram summarizing the Threshold limit under section 22 of
the CGST Act,2017

10 Lacs - 20 Lacs – SOS or 40 Lacs- only

SOG or SOS SOG or both intra –state
or both A STUMP SOG

TNM2urukku • Arunachal OJAH

Pradesh • Other states
• Tripura
• Sikkim • J &K
• Nagaland • Telangana • Assam
• Mizoram • Uttarkhand • Himachal
• Manipur • Meghalaya
• Puducherry
 Explanation to section 22(1) of the CGST Act,2017

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),(3) & (4) of the CGST Act,2017
S.no Situations Who is liable to be When liable
registered to be
registered
1 Already registered under Person registered under 1.07.2017
old law old IDT law

2 Transfer by way Transferee/successor Date of such

succession or otherwise transfer
(including death of a sole
proprietor) as going
concern by taxable
person
3 Transfer pursuant to Transferee Date of
amalgamation/demerger issuance of
of two or more COI giving
companies due to order effect to such
of HC HC order by
ROC
 Question Time - Section 22 of the CGST Act,2017

1. Preethi of Assam is exclusively engaged in intra-state supply of

shoes. Her ATO in the CFY is 22 lacs

Find the THL for exemption from registration and determine

whether liable or not for registration

Hint : Assam not covered in A STUMP as well as TN Murukku.

2. What if preethi is engaged in supply of pan masala instead of

shoes ?
 Question time

1. What if preethi is engaged in exclusive intra-state supply of of

toys in the state of Telangana ?

2. What if preethi is engaged in intra-state SOG/SOS in Telangana?

3. What if preethi is engaged in exclusive SOS in Telangana?

4. What if Preethi is engaged in Intra –state supply of garments in

Assam (TO-28 lacs) and has another showroom in tripura (TO in the
state-11 lacs)

5. What if preethi is engaged in supply of taxable goods in MH

(TO-34 lacs) and supply of Alcoholic liquor for Human
Consumption Rs.8 lacs
 Section 24 of the CGST Act,2017

Compulsory registration in certain cases.

24. Notwithstanding anything contained in sub-section (1) of

section 22, the following categories of persons shall be required
to be registered under this Act,––
(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) person who are required to pay tax under sub-section (5) of
section 9;
(v) non-resident taxable persons making taxable supply;
Section 24 of the CGST Act,2017
Compulsory registration in certain cases.
Cont….
(vi) persons who are required to deduct tax under section 51, whether or not
separately registered under this Act;
(vii) persons who make taxable supply of goods or services or both on behalf
of other taxable persons whether as an agent or otherwise;
(viii) Input Service Distributor, whether or not separately registered under
this Act;
(ix) persons who supply goods or services or both, other than supplies
specified under sub-section (5) of section 9, through such electronic commerce
operator who is required to collect tax at source under section 52;
(x) every electronic commerce operator 1[who is required to collect tax at
source under section 52];
(xi) every person supplying online information and database access or
retrieval services from a place outside India to a person in India, other than a
registered person; and
(xii) such other person or class of persons as may be notified by the
Government on the recommendations of the Council.
 Analysis of Section 24(a) of the CGST Act,2017

Inter-State supplies

Goods

Notified Handi-craft
Taxable goods-CR Exempt goods-No goods-Based on THL
regsistration need of CR of 10/20 lacs vide
Notification
No.10/2017 IT
 Analysis of Section 24(a) of the CGST Act,2017

Inter-State supplies

Services

Exempt services-No Both taxable and

Taxable – THL limit
need of registration exempt – still based
on THL
 Section 24 (b) of the CGST Act,2017

There may be cases where a person has registered in one state say

Karnataka but wants to effect sales seasonally/occasionally in other

state say TN, where does not have a place of business. What could be

the recourse ?

The legal recourse is to take CTP registration. Now let us analyze

who is a CTP.
 Section 2(20) of the CGST Act,2017

“casual taxable person” means 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;

Paraphrased:

• Occasionally undertakes transaction involving SOG/SOS/both

• In the course or furtherance of business

• May be in capacity as principal or agent

• Such transaction is undertaken in a state where he had no FPOB

 Section 2(77) of the CGST Act,2017 :

“non-resident taxable person” means any person who occasionally

undertakes transactions involving supply of goods or services or both,
whether as principal or agent or in any other capacity, but who has no
fixed place of business or residence in India;

Paraphrased:

• Occasionally undertakes transaction involving SOG/SOS/both

• May be in capacity as principal or agent

• No FPOB/FPOR in India
 Some definitions of the CGST Act,2017 :

Section 2 of the CGST Act,2017 :

(44) “electronic commerce” means the supply of goods or services or

both, including digital products over digital or electronic network;

(45) “electronic commerce operator” means any person who owns,

operates or manages digital or electronic facility or platform for
electronic commerce;

(85) “place of business” includes––

(a) a place from where the business is ordinarily carried on, and
includes a warehouse, a godown or any other place where a taxable
person stores his goods, supplies or receives goods or services or
both; or
(b) a place where a taxable person maintains his books of account; or
(c) a place where a taxable person is engaged in business through an
agent, by whatever name called;
 Some definitions of the CGST Act,2017 :

Section 2 of the CGST Act,2017 :

(89) “principal place of business” means the place of business

specified as the principal place of business in the certificate of
registration;

(61) “Input Service Distributor” means an office of the supplier of goods

or services or both which receives tax invoices issued under section 31
towards the receipt of input services and issues a prescribed document
for the purposes of distributing the credit of central tax, State tax,
integrated tax or Union territory tax paid on the said services to a
supplier of taxable goods or services or both having the same Permanent
Account Number as that of the said office;
Section 24(ix) of the CGST Act,2017

Person making
supplies through
ECO required to
collect TCS u/s 52

Services

Section9(5)
notified services- Other supplier of
supplier not services- based on THL
required to take vide NNo. 65/2017-CT
compulsory
registration
Section 24 of the CGST Act,2017

Separate registration in
addition to normal
registration

ECO –TCS
u/s 52

ISD TDS deductor u/s51

 Section 24(xi) of the CGST Act,2017

OIDAR

Delivery mediated by IT over

internet

nature of services Minimum human Impossible

essentially intervention to ensure in
automated absence of
IT`
 Clause Reference Proposed Amendment by the Finance Bill, 2023
▪ The definition of ‘OIDAR’ has been proposed to be
Clause No. 143 of the amended to exclude the condition of ‘essentially
Finance Bill, 2023 automated and involving minimum human
intervention’.
▪ Further, the definition of NTOR is proposed to be
Change in definition of substituted to mean “any unregistered person receiving
OIDAR online information and database access or retrieval services
located in taxable territory”.
▪ It is also proposed to be clarified that unregistered person
shall include persons who are solely registered for the
purpose of TDS such as department or establishment of CG,
SG, LA, Government Agencies.
 Section 24(xi) of the CGST Act,2017

OIDAR

From outside India

to Registered person – Other than to registered person

No CR – OIDAR to get CR.
 Summary of 23 of the CGST Act,2017

Person engaged exclusively Person engaged exclusively

in the business of supplying in the business of supplying
goods /services/both goods /services/both which
-not liable to tax are wholly exempt from tax

Person not
liable for
registration

Agriculturalist to the extent
of supply produce out of
cultivation of land
Specified category of
persons as may be notified
by government on
recommendation of GST
Council
FINANCE BILL 2023 – Amendment to Sec 23
 Question to section 23 of the CGST Act,2017

Desh-bhakt an agriculturalist engaged in cultivation of

wheat in Punjab. In the CY he decides to trade in rice.

Wheat whatever sold is cultivated from his field.

Discuss registration related provisions.

Note : Agriculturalist defined in Section 2(7) of the CGST

Act,2017