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Compulsory GST Registration

7. Section 24(vi) TDS Deductor: 

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Persons who are liable to deduct tax under section 51 (TDS) are required to take separate registration as a tax deductor whether or not registered under GST Act 2017

7.1.) As per section 51 of the CGST Act, 2017, (a), a department or establishment of the Central Government or State Government; or (b) local authority; or (c) Governmental agencies; or (d) (a) an authority or a board or any other body, – (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty – one percent. or more participation by way of equity or control, to carry out any function; (b) Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); (c ) public sector undertakings are liable for Registration as Tax Deductor under GST Act.

7.2 ) if it is not making any taxable supply of goods and/or services, it is required to register only as a deductor of tax at source on the basis of TAN/PAN.

8. Section 24(vii) Agents:

Persons who supply goods or services or both on behalf of other taxable persons whether as an agent or otherwise require registration under GST even if his turnover is below Rs 20/10 lakhs per year 

8.1.) It has been clarified that registration is required only by C&F agents who stock and sell goods on behalf of the Principal. Registration is not required by ordinarily commission agents who do not deal in goods or services themselves if their annual turnover is less than Rs 20/10 lakhs – CBI &C Circular No. 57/31/2018-GST dated 4-9-2018.

9. Section 24(viii) Input Service Distributor :

whether registered or not under the CGST Act 2017, is mandatory required to take registration as Input Tax Distributor.

10. Section 24(ix) Person supplying through E commerce Operators (ECO) :

Persons who supply goods or services or both, other than supplies specified u/s 9(5), through such electronic commerce operator have to compulsorily register under CGST Act. Mandatory registration is required where such E-commerce operators are required to collect tax at source under section 52 of the Act.

11. Section 24(x ) Electronic Commerce Operator :

Every electronic commerce operator who is required to collect tax at source under section 52 inserted vide CGST (Amendment) Act, 2018 w.e.f. 1-2-2019. Thus, an e-commerce operator would require registration when he is required to collect tax at source under section 52 of the CGST Act.

12. Section 24(xiOnline information and database access or retrieval services (OIDAR) :

The mandatory registration is required for every person supplying online information and database access or retrieval services (OIDAR) from a place outside India to a person in India, other than a registered taxable person. Thus, if a person is already registered under GST, separate registration is not required.

13. Section 24(xii) :

Mandatory registration is required for such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the GST Council.

14. Other relevant provisions :

Person dealing only in exempted products is not required to be registered under GST unless he is liable under reverse charge .Thus registration under GST will be compulsorily required if a person is liable to pay tax under reverse charge.

15. The provisions for compulsory registration are not applicable to persons who are not liable for registration under section 23 of CGST and SGST Act. Thus, following need not register even if they fall under any of category specified in section 24(1) – (a) persons who are supplying goods or services which are not liable to tax or (b) wholly exempt from tax or (c) agriculturist or (d) person supplying goods or services where service recipient is liable to pay tax.

Part 17 of the series will cover the topic “Procedure for Registration GST Sec 25 of CGST Act.

Disclaimer: 

The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

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