MANDATORY REGISTRATION

 

Compulsory registration (Section 24 of CGST ACT):

As per section 24 of the CGST Act, it is mandatory for certain persons to take registration under GST despite their aggregate turnover is less than the applicable exemption limit.

1. Inter-state supply

Persons making any inter-State taxable supply

Exceptions of inter-state supply - not be covered under compulsory registration

• Inter-state supply of services and the aggregate value of such supplies not exceeding the exemption limit.
• Inter-state supply of hand-crafted goods and the aggregate value of such supplies does not exceed the exemption limit
• Job-workers having a turnover of less than the exemption limit. This clause shall not be applicable to jewellery, goldsmiths, and silversmiths wares, and other articles manufactured on a job work basis.

 

2. Casual taxable persons making taxable supply

Irrespective of the aggregate turnover in the previous year CTP is required to obtain compulsory registration.

Exemption has been given to person engaged in the supply of Handicraft goods if aggregate turnover to be computed on all India basis not exceeding an amount of 20 Lakhs.

 

3. Persons who are required to pay tax under reverse charge

Under the reverse charge mechanism (RCM), the recipient of goods or services is liable to pay tax and all provisions of GST law shall applicable to him as he is a person who liable to pay tax. It is compulsory to get registered under GST provisions for a person, who is liable to pay tax under the reverse charge mechanism (RCM).

It is relevant to note that a supplier who is making only reverse charge supplies is not required to register if his aggregate turnover of supplies is less than the exemption limit. 

 

4. Electronic Commerce Operator

It is mandatory to take GST registration for an e-commerce operator if he is required to collect tax at source under section 52. Moreover, any person, who engaged in the supply of goods or services through such an e-commerce operator, also required to obtain compulsory registration under GST.

Exception

Any person who provides services and the aggregate value of such services does not exceed the threshold limit Rs 20 lakhs per annum (Rs 10 lakhs in case of specified States)

 

5. Non-resident taxable persons making taxable supply

If he is engaged in any kind of taxable supply in the taxable territory. Please note that every NRI individual or company making taxable supply has to register under the GST regime irrespective of frequency and amount of transaction.

  

6. Persons who are required to deduct tax i under section 51

Following persons are required to deduct tax under section 51 of CGST act-

• Local authority - A department or an establishment of the Central Government or State government
• Government Agencies - Such persons or categories of persons may be notified by the government.

 

7. Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise

“Agent” means a person, including a factor, broker, commission agent, 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 ISD is required to obtain compulsory registration under GST irrespective of turnover in a year.

ISD is an office of the supplier which receives the invoice of its branches and distributes the input to such branches proportionately by raising an ISD invoice.

 

9. OIDAR services from a place outside India to an unregistered person in India

OIDAR services refer to services provided through the medium of the internet without the physical interaction of the supplier and recipient of services.

 

Every person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person is required to obtain GST registration compulsorily.

 

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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