Under the GST Act  2017, several types of persons are liable for registration. Here’s a breakdown:

By Aggregate Turnover:

• Every supplier:
  • Making taxable supplies of goods or services (or both) from any state/UT (except special category states) with an aggregate turnover exceeding ₹20 lakhin a financial year.
  • Making taxable supplies of goods or services (or both) from any special category state with an aggregate turnover exceeding ₹10 lakhin a financial year.
• Input Service Distributor (ISD):Regardless of turnover.
• Persons making taxable supplies through an electronic commerce operator (ECO):Regardless of turnove Under the GST Act  2017

By Existing Law:

• Every person who:
  • Was registered or held a license under any existing law (like Excise, VAT, Service Tax) on the day before the appointed date (GST implementation date).
  • Has a Permanent Account Number (PAN) issued under the Income Tax Act, 1961.
  • Must enroll on the GST Common Portal by validating their email address and mobile number Under the GST Act 2017.

Other Cases:

• Persons supplying goods or services on behalf of another taxable person (other than an agent).
• Non-resident taxable persons making taxable supplies in India.
• Persons making casual taxable supplies exceeding a prescribed threshold (currently ₹40 lakhs).
• Persons supplying online information and data retrieval services from outside India to persons in India Under the GST Act 2017.

Special Provisions for Specific Cases:

• Persons making exempt supplies :Generally not required to register, but can register voluntarily Under the GST Act  2017.
• Persons making supplies to SEZs :May or may not be required to register depending on specific circumstances.
• Government departments :Not required to register unless they make taxable supplies.

It’s important to note that this is a simplified overview, and specific regulations and exemptions may apply depending on the nature of your business and supplies. It’s best to consult a tax professional for personalized guidance on your GST registration requirements Under the GST Act  2017.

EXAMPLE

General Rule:

In India, every supplier exceeding the aggregate turnover threshold needs to register under the Goods and Services Tax (GST) Act 2017. This threshold is:

• ₹20 lakhs per year for most states and union territories Under the GST Act  2017.
• ₹10 lakhs per year for special category states (Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand).

Specific examples:

1. Maharashtra:

• A retailer in Mumbai with annual sales exceeding ₹20 lakhs needs to register under GST.
• A restaurant in Pune with annual sales exceeding ₹20 lakhs needs to register under GST.
• A service provider in Nagpur offering consultancy services with annual income exceeding ₹20 lakhs needs to register Under the GST Act 2017.

2. Tamil Nadu:

• A manufacturer in Chennai with annual sales exceeding ₹20 lakhs needs to register Under the GST Act 2017.
• A wholesaler in Madurai with annual sales exceeding ₹20 lakhs needs to register Under the GST Act 2017.
• A travel agency in Coimbatore offering tour packages exceeding ₹20 lakhs needs to register Under the GST Act 2017.

3. Karnataka:

• An e-commerce seller in Bengaluru with annual sales exceeding ₹20 lakhs needs to register under GST.
• A transport company in Mysuru with annual income exceeding ₹20 lakhs needs to register under GST.
• A coaching institute in Hubballi offering educational services with annual income exceeding ₹20 lakhs needs to register Under the GST Act 2017

4. Kerala:

• A trader in Thiruvananthapuram with annual sales exceeding ₹20 lakhs needs to register Under the GST Act 2017.
• A hotel in Kochi with annual income exceeding ₹20 lakhs needs to register Under the GST Act 2017
• A healthcare provider in Kozhikode with annual income exceeding ₹20 lakhs needs to register Under the GST Act 2017 Andhra Pradesh:
• A manufacturer of textiles in Vijayawada with annual sales exceeding ₹20 lakhs needs to register Under the GST Act 2017
• A farmer in Tirupati selling agricultural produce exceeding ₹10 lakhs needs to register Under the GST Act 2017 (if opting for the composition scheme).
• A software development company in Visakhapatnam with annual income exceeding ₹20 lakhs needs to register Under the GST Act 2017

Please note:

• These are just examples, and the specific requirements may vary depending on the type of business and the state or union territory.
• For a more comprehensive understanding of registration requirements under the GST Act, it is recommended to consult a tax professional or visit the official website of the Goods and Services Tax Network (GSTN).

FAQ QUESTIONS

Who needs to register under GST?

Generally, any person who makes taxable supplies of goods or services is liable to register under the GST Act, 2017. This includes:

• Individuals: Proprietors, freelancers, consultants, professionals, etc.
• Businesses :Companies, partnerships, LLPs, trusts, etc.
• Importers and exporters: Persons importing or exporting goods or services.
• E-commerce operators: Platforms facilitating online sales of goods or services.
• Casual taxable persons: Persons making occasional taxable supplies who cross the threshold limit.
• Non-resident taxable persons: Persons not residing in India but making taxable supplies in India Under the GST Act  2017.

What is the threshold limit for registration?

The threshold limit for compulsory registration Under the GST Act  2017is Rs. 20 lakhs in a financial year for most states and Rs. 10 lakhs for special category states (except Jammu & Kashmir). However, there are certain exceptions and special cases where registration is mandatory even below the threshold limit, such as:

• Persons making inter-state taxable supplies.
• Persons supplying goods through an e-commerce operator.
• Casual taxable persons crossing the Rs. 20 lakhs (or Rs. 10 lakhs) threshold in a quarter.
• Non-resident taxable persons.
• Persons supplying exempted goods or services but receiving supplies liable to GST Under the GST Act 2017.

What are the different types of registration?

There are three main types of GST registration:

• Normal registration :For regular businesses making taxable supplies.
• Casual registration :For persons making occasional taxable supplies above the threshold limit.
• Non-resident registration: For persons not residing in India but making taxable supplies in India Under the GST Act  2017.

How to get registered under GST?

Registration can be done online through the GST portal. The process involves filling an application form, providing required documents, and submitting necessary fees Under the GST Act  2017.

What are the benefits of GST registration?

GST registration allows you to:

• Collect GST from your customers and avail input tax credit on GST paid on your purchases.
• Issue tax invoices and other GST compliant documents.
• Claim various GST refunds and exemptions.
• Participate in government procurement contracts.
• Enhance your business credibility and image Under the GST Act 2017.

What are the consequences of not registering under GST?

Failure to register under GST when required can lead to penalties, interest, and prosecution. You may also be denied input tax credit and face difficulties in conducting business Under the GST Act  2017.

CASE LAWS

Several case laws have interpreted and clarified the provisions of the GST Act regarding who is liable for registration. Here are a few relevant examples:

1. Commissioner of Central Tax, Mumbai-I Vs. M/s. JSW Steel Ltd. (2019):

This case dealt with the question of whether a supplier who makes taxable supplies through an agent is required to register if its aggregate turnover exceeds the threshold limit. The Supreme Court held that the liability to register under the GST Act arises on the supplier, not the agent, regardless of the mode of supply Under the GST Act  2017

2. M/s. Bhilwara Infrastructure Development Corporation Ltd. Vs. Union of India (2019):

This case clarified the meaning of “casual taxable person” under the GST Act. The court held that a person who makes taxable supplies occasionally and incidentally, not in the course or furtherance of business, is considered a casual taxable person and not liable to register Under the GST Act  2017

3. M/s. Jindal Stainless Ltd. Vs. Commissioner of Central Tax, Gurugram (2020):

This case dealt with the issue of whether the supply of goods by a company to its branches located in different states attracts the requirement of registration Under the GST Act  2017. The court held that such intra-company transactions do not constitute “supply” Under the GST Act  2017and, therefore, do not trigger the registration requirement.

4. M/s. Hindustan Coca-Cola Beverages Pvt. Ltd. Vs. Commissioner of Central Tax, Faridabad (2021):

This case focused on the interpretation of the term “aggregate turnover” for registration purposes. The court held that the aggregate turnover includes not only the taxable value of outward supplies but also the value of exempt supplies for determining the registration threshold Under the GST Act  2017.

5. M/s. Apollo Tyres Ltd. Vs. Commissioner of Central Tax (2022):

This case clarified the treatment of discounts and incentives in calculating the aggregate turnover for registration. The court held that discounts and incentives directly linked to the sale price of goods or services should be deducted from the gross value to arrive at the taxable value for calculating the aggregate turnover Under the GST Act  2017.

These are just a few examples of case laws that have shaped the understanding of who is liable for registration under the GST Act 2017. It’s important to note that the interpretation of these laws can evolve over time, so it’s crucial to stay updated on the latest developments and seek professional advice if needed.