Notwithstanding anything contained in sub-section (1) of
section 22, the following categories of persons shall be required to be
registered under this Act irrespective of the aggregate turnover,––
1. Persons making any inter-State taxable supply:-
A person making any inter-State taxable supply of goods is
required to be registered under GST irrespective of the turnover limit
2. Casual taxable persons making taxable supply
As per section 24 of the CGST Act 2017, a casual taxable person
is required to obtain compulsory registration irrespective of the aggregate
turnover in the previous year. However, the exemption has been given to a person
engaged in the supply of “Handicraft goods”. A casual taxable person making
taxable supplies of handicraft goods is exempted from obtaining registration if
aggregate turnover to be computed on all India basis not exceeding an amount of 40 Lakhs.
Casual taxable person meaning- As per sec 2(20) of CGST Act
means a person who occasionally undertakes transactions involving the supply of
goods or services or both in the course or furtherance of business, whether as
principal, agent or in any other capacity, in a State or a Union territory
where he has no fixed place of business.
3. Persons who are required to pay tax under reverse charge
A person who is required to pay tax under reverse charge has
to take compulsory registration as he has to take registration to submit tax
under reverse charge.
The important point should be taken into consideration that
Section 24 overrides sec 22 only so any person who is exclusively in the
business under section 23 i.e. any person engaged exclusively in the business
of supplying goods or services not liable to tax or wholly exempt from tax then
he is not required to get himself registered.
A Person engaged exclusively in the manufacture of exempted
product receiving GTA service which is under reverse charge would require
registration under the CGST Act to discharge his duty liability under
reverse charge. (Jalaram Feeds, In re [2019] (AAR – MAHARASHTRA)
In the case of mandatory RCM, the service recipient is
compulsorily liable to pay tax and all the provision of GST law shall apply to
such recipient as if he is the person liable for paying the tax. On account of
this, the provisions of section 24 are introduced for mandatory registration in
such cases.
4. Electronic Commerce Operator
Electronic Commerce Operator who is required to collect tax
at source under section 52;] [The words ‘required to collect ‘ inserted vide
CGST (Amendment) Act, 2018 w.e.f. 1-2-2019]. Thus, an e-commerce operator would
require registration only when he is required to collect tax at source under
section 52 of the CGST Act.
Persons who supply goods or services or both, other than
supplies specified under sub-section (5) of section 9, through such electronic
commerce operator who is required to collect tax at source under section 52;
[Under section 9(5) of CGST Act, Government can notify e-commerce operators who
will be liable to pay entire GST]
However, persons who are suppliers of service and supplying
services through e-commerce operator are not required to register under GST if
their aggregate turnover is less than Rs 40 lakhs per annum (Rs 10 lakhs in
case of specified States) – Notification No. 65/2017-CT dated 15-11-2017. This
relaxation does not apply to a supplier of goods.
5. Non-resident taxable persons making taxable supply
A non-resident person who is making any kind of taxable
supply in the taxable territory then he has to take compulsory registration.
As per section 2(77) of CGST Act 2017,” Non-resident taxable
person” means any person who occasionally undertakes transactions involving
supply of goods or services or both, whether as principal or agent or in any
another capacity, but who has no fixed place of business or residence in India;
6. Persons who are required to deduct tax under section 51,
whether or not separately registered under this Act
A person who is required to deduct TDS the authorities as
notified a department or establishment of the Central Government or State
Government; or local authority; or Governmental agencies; or such persons or
category of persons as may be notified by the Government are required to get
itself registered under GST compulsorily
7. Persons who make taxable supply of goods or services or
both on behalf of other taxable persons whether as an agent or otherwise
A person who is working as an agent or otherwise and also
making taxable supply then as per section 24 of CGST Act 2017 he has to
compulsorily get registered so any kind of agent who is making taxable supply
needs to get registered under GST immediately.
As per section 2(5) of CGST Act, 2017 “agent” means a person,
including a factor, broker, commission agent, arhatia, del credere agent, an
auctioneer or any other mercantile agent, by whatever name called, who carries
on the business of supply or receipt of goods or services or both on behalf of
another;
8. Input Service Distributor, whether or not separately
registered under this Act
input service distributor has to get compulsory registration
under GST. As per 2(61) of CGST Act 2017 “Input Service Distributor” means an
office of the supplier of goods or services or both which receives tax invoices
issued under section 31 towards the receipt of input services and issues a
prescribed document to distribute the credit of central tax,
State tax, integrated tax or Union territory tax paid on the said services to a
supplier of taxable goods or services or both having the same Permanent Account
Number as that of the said office;
9. Every person supplying online information and database
access or retrieval services from a place outside India to a person in India,
other than a registered person
Summary: As per the above provision if a person is supplying
online information and database access or retrieval from outside India then
that person has to get itself registered under GST irrespective of the turnover
in the previous year. E.g. Netflix providing services outside India then
Netflix has to get itself registered and pay taxes under normal charge.
10. Such other person or class of persons as may be notified
by the Government on the recommendations of the Council.
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