Section 22 states that Supplier shall be liable to be registered under GST in various circumstances.

A taxable person is liable for registration under GST in following cases

i) On crossing of threshold Limit of Aggregate Turnover (AT) u/s 22(1)

ii) Person registered under earlier law shall be liable to be registered under GST u/s 22(2)

iii) Transferee shall be liable to be registered on Transfer of Business on succession or otherwise u/s 22(3)

iv) Transferee shall be liable to registered on Amalgamation or Demerger u/s 22(4)

v) Compulsory Registration u/s 24

vi) Voluntary Registration u/s 25(3)

Question & Answer

Supplier shall be liable to be registered under GST if his AT exceeds threshold limit as given below.

Section 22(1)

Every supplier^[2(105)] shall be liable to be registered under this Act

in the State/UT from where he makes a taxable supply^[2(108)] of goods^[2(52)] or services^[2(102)] or both

If his aggregate turnover (AT) in a FY exceeds following limit

State wise separate registration is required

Person is liable to take a registration separately for each of the states where he has a business operation and is liable to pay GST u/s 22(1)

Explanation (iii) to Section 22

“special category States” shall mean

the States as specified in clause 279A(4)(g) of the Constitution

[1][except the State of Jammu and Kashmir] [2][and Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand]

As per Article 279A(4)(g) of the Constitution,

there are 11 Special Category States, namely, Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand.

Hence as per Explanation (iii) to Section 22, Special category States shall be

Manipur, Mizoram, Nagaland and Tripura.

Accordingly, threshold limit remains

Rs.10 for the States of Manipur, Mizoram, Nagaland and Tripura.

Rs.20 for other states

Question & Answer

For meaning of Aggregate Turnover, refer Section 2(6)

Explanation to Section 22 - For the purpose of this section,

(i) “AT” shall include all supplies made by the taxable person^[2(107)],

whether on his own account or

on behalf of all his principals^[2(88)];

(ii) the supply of goods, after completion of job work^[2(68)], by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and value of such goods shall not be included in the AT of the registered job worker;

Supply of goods, after completion of job work, directly from a registered job worker’s premises is treated as supply of goods by the principal.

Supply by agent on behalf of principal, shall be treated as supply of Agent.

In case the job worker is unregistered, principal should declare job worker’s premises as his additional place of business and remove goods from the same.

Question & Answer

[3][2^nd Proviso to Section 22(1)

Government may,

at the request of a special category State and

on the recommendations of the Council,

enhance AT from Rs.10 lakh to such amount, not exceeding Rs.20 lacs and

subject to such conditions and limitations, as may be so notified.]

No such notification has yet been notified.

[4][3^rd Proviso to Section 22(1)

Government may,

at the request of a State and

on the recommendations of the Council,

enhance AT from Rs.20 lacs to such amount not exceeding Rs.40 lacs in case of supplier who is engaged exclusively in the supply of goods,

subject to such conditions and limitations, as may be notified.

Explanation to section 22(1)

For the purpose 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.

N No. 10/2019-CT dt. 07-03-2019 has been issued u/s 23(2)

CG specifies that

any person,

who is engaged in exclusive supply of goods and

whose AT in FY does not exceed Rs.40 lacs in a FY

is exempt from obtaining registration under this act

except, -

(a) persons required to take compulsory registration u/s 24;

(b) persons engaged in supplies of following goods;

(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and

(d) persons exercising option u/s 25(3), or such registered persons who intend to continue with their registration under the said Act.

Increased threshold limit of Rs.40 for registration shall only apply if all conditions of above notification are fulfilled.

Section 22(1) read with N No. 10/2019-CT

Every supplier shall be liable to be registered under this Act

in the State/UT from where he makes a taxable supply of goods or services or both

if his aggregate turnover in a financial year exceeds following threshold limit.

SN

States

Threshold limit

For supplier engaged exclusively in “supply of goods”

1

Tripura, Mizoram, Manipur, Nagaland

Rs.10 lacs

2

Uttarakhand, Sikkim, Arunachal Pradesh, Meghalaya, Puducherry, Telangana

Rs.20 lacs

3

Other States

Rs.40 lacs

For supplier engaged in “supply of services” or both “goods and services”

1

Manipur, Mizoram, Nagaland, Tripura

Rs.10 lacs

2

Other States

Rs.20 lacs

Question & Answer

Supplier must make at least one taxable supply for liable to be registered. If supplier makes all exempt supplies, them he shall not be liable to be registered under GST by virtue of Section 23(1).

Question & Answer

A person is required to obtain registration with respect to his each place of business in India from where a taxable supply has taken place.

However, supplier is not liable to obtain registration in a State/UT from where he makes an exempt/non-taxable supply.

Question & Answer

If a person with places of business in different States across India has one branch in a Special Category State, the threshold limit for GST registration will be Rs.10 lakh/Rs.20 lacs.

However, in case he makes exempt/non-taxable supply from a Special Category State and taxable supplies from a State other than Special Category State, the threshold limit shall not be so reduced.

Question & Answer

Extract of Circular No. 109/28/2019-GST, dated 22-7-2019

Issue 2. A RWA has aggregate turnover of Rs.20 lakh or less in a FY. Is it required to take registration and pay GST on maintenance charges if the amount of such charges is more than Rs. 7500/- per month per member?

Clarification: No. If aggregate turnover of an RWA does not exceed Rs.20 Lakh in a FY, it shall not be required to take registration and pay GST even if the amount of maintenance charges exceeds Rs. 7500/- per month per member.

RWA shall be required to pay GST on monthly subscription/ contribution charged from its members, only if such subscription is more than Rs. 7500/- per month per member and the annual aggregate turnover of RWA by way of supplying of services and goods is also Rs. 20 lakhs or more

Section 22(2)

Every person who is registered or holds a licence under an existing law,

on the day immediately preceding the appointed day

shall be liable to be registered under this Act with effect from the appointed day.

Question & Answer

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, shall be liable to be registered with effect from the date of such transfer or succession.

Extract of Circular No. 96/15/2019-GST dt. 28-03-2019

3a. Registration liability of the transferee / successor

As per 22(3) of the CGST Act, the transferee or the successor, shall be liable to be registered wef the date of such transfer or succession, where a business is transferred to another person for any reasons including death of the proprietor.

While filing application in GST REG-01 electronically, the applicant is required to mention the reason to obtain registration as “death of the proprietor”

Question & Answer

Section 22(4)

Notwithstanding anything contained in sub-sections (1) and (3),

in a case of transfer on amalgamation, demerger of two or more companies pursuant to an order of a HC, Tribunal or otherwise,

transferee shall be liable to be registered, wef the date on which the ROC issues a certificate of incorporation giving effect to such order of the HC or Tribunal.

Question & Answer