Introduction:

Section 22 of the GST act deals with the provision related to the persons liable to registration under GST. GST registration is a formal process wherein businesses and individuals become part of the taxation system, contributing to the nation’s revenue and ensuring transparency in economic transactions. It is a legal obligation for entities meeting certain criteria. Understanding who are the persons liable to registration under GST, is fundamental for businesses and individuals to comply with the tax framework.

Section 1: Persons liable to registration under GST

Those who exceed threshold limit – The threshold limit for registration is varies for both the goods and service. In case of supply of goods the aggregate turnover is Rs. 40 Lakhs in a financial year in case of normal states. For special category states the aggregate turnover is Rs. 20 Lakhs. For service provider the aggregate turnover is 20 lakhs for normal states and Rs.10 lakhs for specially category states.

In case of transfer of business on account of succession, etc  –  Transferee liable to be registered from the date of succession of business.

In case of amalgamation or demerger by an order of High Court etc.  – Transferee liable to be registered from the date on which registrar of companies issues incorporation certificate giving effect to order of High Court etc.

Section 2: Applicable threshold limit for Persons liable to registration under GST

States with threshold limit of Rs. 10 lakh for supplier of goods and / or services are namely

1. Manipur
2. Mizoram
3. Nagaland
4. Tripura

States / Union territories with threshold limit of Rs. 20 lakh for supplier of goods and / or services are namely

1. Arunachal Pradesh
2. Meghalaya
3. Sikkim
4. Utarakhand
5. Pudecherry
6. Telangana

States / Union territories with threshold limit of Rs. 20 lakh for supplier of service / both goods and services and Rs.40 laksh for supplier of goods (Intra-state) are namely

1. Jammu and Kashmir
2. Assam
3. Himachal Pradesh
4. All other states…

Section 3: What is aggregate Turnover under GST

The aggregate turnover includes,

 Taxable supplies + Exempt supplies + Exports+ Interstate supplies = Aggregate Turnover   Note – Aggregate Turnover will be computed on All-India basis for same PAN

Conclusion:

Registration is not just a legal obligation; it is a strategic step towards participating in the formal economy. Understanding who are the persons liable to registration under GST is paramount for businesses and individuals alike. Businesses with an annual turnover exceeding the prescribed threshold limit in both goods and service and above mentioned category of persons liable to registration under GST.

Disclaimer: The content and views stated in this article is solely for informational purpose only.

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