Registration: Persons liable for GST (Sec 22), Person liable

GST or Goods or Services Tax is a consumption-based tax, it is an indirect tax which levied on sale, manufacturing, consumption, import and export of Goods or Services. The Act made effective with the view to remove cascading of taxes which were there in India. There were number of taxes which were imposed on the goods or services and the input of different taxes paid by the taxpayer were not available to him in different stages due to which the price of the goods as well service increased when ultimately consumed by the consumer. In order to provide the benefit of the input at various stages and in order to cascade the effect of tax GST Act, was introduced. After implementation of GST Act, all the taxes like VAT, CST, Entry tax, entertainment tax and different other tax as well as duties were subsumed and only one tax ie,., GST was introduced. One nation One Tax was the mantra.

(1) Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:

Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.

Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.

Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

(2) Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

(3) Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.

SECTION 23 OF GST ACT: Person Not Liable for Registration

A person shall not be liable to take registration under the Act if he is

• Engaged in any business of supplying goods or services which are not liable to tax or wholly exempt from tax under Act or under the IGST Act.
• An agriculturist, to the extent of supply of produce out of cultivation of land.

Further, the government can also exempt any person from taking registration through a notification in the official gazette.

SECTION 24 OF GST ACT: Compulsory registration in certain cases

Here is the list of people who are compulsory required to get themselves registered under the Act

(i) Persons making any inter-State taxable supply;

(ii) Casual taxable persons making taxable supply;

(iii) Persons who are required to pay tax under reverse charge;

(iv) Person who are required to pay tax under sub-section (5) of section 9;

(v) Non-resident taxable persons making taxable supply;

(vi) Persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

(vii) Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

(viii) Input Service Distributor, whether or not separately registered under this Act;

(ix) 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;

(x) Every electronic commerce operator;

(xi) 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; and

(xii) Such other person or class of persons as may be notified by the Government on the recommendations of the Council.

Documents for GST Registration

1. PAN card
2. Valid Phone no. and Email id for OTP.
3. Passport size photograph of the Applicant.
4. Proof of principle place of business (any one)

• Legal ownership document
• Electricity bill
• Municipal khata copy
• Property tax receipt

5. Proof of details of Bank Account

• Bank statement
• Cancelled cheque
• The first page of the passbook

6. Other details

• Proof of appointment of Authorized Signatory (Letter of Authorization or copy of board resolution)
• Authorized Signatories photo
• Incorporation certificate (for Company and LLP)
• List of Goods and Services
• DSC