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Compulsory GST Registration

Compulsory GST Registration Section 24 CGST Act 2017 

1. As per section 24(1) of the CGST Act 2017, the following categories of persons are required to be registered, even if their aggregate turnover is below specified threshold limit and are exempt from registration under section 22(1).

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2. Section 24(i): Inter-State Supply of Goods: 

Persons making an interstate taxable supply of goods are required to take registration irrespective of the thresh hold limit.

2.1) Exceptions:- Persons making inter-state supply of services are not required to register if aggregate turnover is less than Rs 20/10 lakh – Notification No. 10/2017-IT dated 13-10-2017.

2.2)Supply of Handicraft Goods Persons engaged in inter-state supply of handicraft goods are exempt from registration if the aggregate value of all their supplies on all India basis is less than Rs 20 lakh /10 lakh per Annum

3. Section 24(ii): Casual taxable persons: 

Casual taxable persons making taxable supply are required to take registration irrespective of thresh hold limit.

3.1) A casual taxable person means a person who occasionally undertakes transactions in a State where he has no fixed place of business. Suppose Mr. X registered in Maharashtra participates in the trade fair in Karnataka and making taxable supplies from there. He will be a casual taxable person and required to take mandatory registration in Karnataka.

3.2) Exception:- Persons engaged in the supply of handicraft goods are not required to obtain casual registration if they supply goods outside the State and the aggregate value of all their supplies on all India basis is less than Rs 20 lakhs/10 lakhs per year. Notification No. 32/2017-CT dated 15-9-2017.

3.3) Casual taxable person registration is not required for the movement of goods on an approval basis. CBEC vide circular no. 10/10/2017-GST dated 18.10.2017 stated that in case of movement of jewelry (or any goods) on approval basis the suppliers are not able to ascertain their actual supplies while ascertainment of tax liability in advance is a mandatory requirement for registration as a casual taxable person.

Hence, it is clarified that the goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. Thus casual taxable person registration not required for movement of goods on approval basis.

3.4) It is further clarified that all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.

4. Section 24(iii) Reverse Charge Liability: 

persons who are liable to pay tax under reverse charge is required to take mandatory registration irrespective of the threshold limit. Section 9(3) of the CGST Act provides the specified categories of goods & services for which tax is to be paid under RCM. Section 9(4) specified the category of person who is required to pay tax under the reverse charge mechanism (RCM).

4.1) Mandatory registration is not required if such specified Goods or Services is exempted by way of notification . Notification No. 12/2017 CT(Rate) dated 28.06.2017 exempts services provided by a partnership firm of advocates or an individual as an advocate or senior advocate by way of legal services to a business entity with an aggregated turnover within the threshold limit.

5. Section 24 (iv):

Persons who are liable to pay tax under section 9(5) are required to take mandatory registration. As per section 9(5) of the Act, In respect of following specified services, the tax shall be paid by the E Commerce Operator (ECO) on behalf of the service suppliers for services supplied through ECO:-

6. Section 24(v) Non-Resident Taxable Person:

Non-Resident taxable person making taxable supply is required to take registration irrespective of the thresh hold limit.

6.1) Non-resident taxable person” means any person who occasionally undertakes transactions involving the 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.

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