Registration in GST is PAN-based and state-specific. Under GST one registration per state or Union territory is required. Thus, there are no centralized registration under GST, a person having multiple places of business in a state or union territory may be granted a separate registration for each such place of business subject to such conditions as may be prescribed. GST identification number called “GSTIN” a 15-digit number and a certificate of registration incorporating therein this GSTIN is made available to the applicant on the GSTN common portal. GST registration does not tax specific i.e. registration is for all the taxes.
What are the advantages of getting registered under the GST?
Registration under GST will confer the following benefits:
- You will get legally recognized as a supplier of goods or service
- Proper accounting of taxes paid on the input goods or services which can be utilized for payment of GST due on supply of goods or services or both by the business
- Legally authorized to collect tax from his purchasers and pass on the credit of the taxes paid on the goods or services to purchasers or recipients
Who is liable for registration under GST?
As per section 22, a person is liable for registration under GST if, the aggregated turnover for the previous year exceeds Rs. 20 lakhs where the person is engaged in the supply of goods or service or both, in case the person supplies only goods then the turnover limit will be Rs. 40 lakhs for the previous year. If the person is having a place of business and making taxable supplies from special category states like Manipur, Mizoram, Nagaland and Tripura then the threshold limit for GST registration will be reduced to Rs. 10 lakhs
For more details please refer: How to calculate the threshold turnover limit for GST Registration?
Persons not liable for registration
The following persons shall not be liable to registration, namely: —
- any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
- an agriculturist, to the extent of supply of produce out of cultivation of land.
The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.
Certain persons are exempt from obtaining registration under GST. As per Section 23 of CGST Act, 2017, the following persons are not liable to be registered under GST:
- persons engaged in the supply of goods or services or both which are wholly exempted
- agriculturists who supply produce cultivated out of his land
- persons notified who are exempted from obtaining registration by way of notification
They are not required to be registered even if their turnover exceeds ` 20 lakhs or such other prescribed threshold. To this extent, section 23 overrides the provisions of Section 22.
Persons engaged in the supply of goods or services or both which are wholly exempted
Persons engaged in the exclusive supply of goods or services or both which are fully exempt are not liable to register under GST. However, if the persons deal with taxable as well as exempt supplies of goods or services, they shall be liable to be registered as per Section 22. The definition of exempt supplies has been discussed earlier. Exempt supplies include non-taxable supplies too. Thus, if a person is supplying only petrol, then he will not be liable to be registered under GST. Similarly, if a charitable trust is exclusively into rendering charitable services, then it is not required to be registered under GST.
As per Section 2(7) of the CGST Act, agriculturist is defined thus –
“agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land
- by own labour, or
- by the labour of family, or
- by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family;
An agriculturist to the extent of supply of produce out of cultivation of land is also not liable for registration. From the above definition, agriculturists who are individuals or HUF alone not liable for registration. Further, if the agriculturist makes any other supplies other than out of cultivation of land, he shall be liable for registration.
The exemption is supplier-based and supply-based. If the supplier is not an agriculturist, then he shall be liable to registration subject to Section 22 or Section 24. If the supply is not out of cultivation of land, though the supplier is an agriculturist, then also he shall be liable for registration subject to Section 22 or Section 24 of the said Act.
Persons exempt from obtaining registration by Notification
- Notification No. 5/2017-Central Tax, Dated 19-6-2017- specifies the persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under sub-section (3) of section 9 of the said Act as the category of persons exempt from obtaining registration under the aforesaid Act.
- Notification No.56/2018-Central Tax, Dated 23-10-2018 And Notification No. 3/2018 – Integrated Tax, Dated 22-10-2018 [The Above Notifications Superseded Notification No. 32/2017-Central Tax, Dated 15-9-2017 And Notification No. 8/2017-Integrated Tax, Dated 14-9-2017 Respectively] – specifies the categories of casual taxable persons making inter-State taxable supplies of specified handicraft goods and persons making inter-State taxable supplies of the certain specified products when made by the craftsmen predominantly by hand who shall be exempted from obtaining registration under the said Act subject to certain conditions.
- Notification No.65/2017-Central Tax, Dated 15-11-2017 As Amended By Notification No. 6/2019 – Central Tax, Dated 29-1-2019 – specifies the persons making supplies of services, other than supplies specified under sub-section (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, as the category of persons exempt from obtaining registration under the said Act subject to certain conditions.
- Notification No. 10/2019-Central Tax [F.No.354/25/2019-Tru], Dated 7-3-2019 – specifies the persons engaged in the exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, as the category of persons exempt from obtaining registration under the said Act subject to certain conditions. Please refer to the discussions under Section 22.
- Notification No. 7/2017-Integrated Tax, dated 14-9-2017 As Amended By Notification No. 2/2019 – Integrated Tax, Dated 29-1-2019 – specifies the job workers engaged in making the inter-State supply of services to a registered person as the category of persons exempted from obtaining registration under the said Act subject to certain conditions.
- Notification No. 10/2017-Integrated Tax, Dated 13-10-2017 As Amended By Notification No. 3/2019 – Integrated Tax, Date 29-1-2019 – specifies the persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees for normal States and ten lakh rupees for special category States in a financial year as the category of persons exempt from obtaining registration under the said Act.