Registration (Sections 22, 23, 24, 25)

GST registration is the process by which a business becomes a recognized supplier under the Goods and Services Tax law, obtains a unique GSTIN, and gains the right to collect GST, claim input tax credit, and comply with GST regulations. The provisions related to registration are primarily covered in Sections 22, 23, 24 and 25 of the CGST Act, 2017.

Section 22 defines the persons liable for registration. It mandates registration for suppliers whose aggregate turnover in a financial year exceeds the prescribed threshold limit (₹20 lakh/₹10 lakh for services and ₹40 lakh for goods in some states). Registration is state-specific, and voluntary registration is also allowed.

Section 23 deals with persons not liable to register. It exempts agriculturists supplying produce from cultivation and persons exclusively engaged in supplying exempt goods or services. Small businesses below the threshold limit are also covered here.

Section 24 lays down cases where registration is compulsory, irrespective of turnover. These include inter-state suppliers, casual and non-resident taxable persons, persons liable to pay tax under reverse charge, e-commerce operators and suppliers, Input Service Distributors, TDS/TCS deductors, and foreign OIDAR service providers.

Section 25 specifies the procedure for registration. It prescribes an online application through the GST portal, Aadhaar-based authentication, submission of documents, and issuance of a GSTIN and registration certificate after verification by the tax officer.

In essence, these provisions collectively establish who needs to register, who is exempt, when registration becomes compulsory, and how the registration process is carried out. Registration under GST is the foundation of compliance and ensures transparency in the indirect tax system.

SECTION 22 – PERSONS LIABLE FOR REGISTRATION:

Section 22 of the CGST Act, 2017 specifies who is required to register under GST. Registration is the foundation for compliance in the GST regime because only registered persons can collect GST, issue tax invoices, and claim Input Tax Credit.

1. Applicability Based on Aggregate Turnover

The law states that every supplier whose aggregate turnover in a financial year exceeds the prescribed threshold must register.

• General threshold: ₹20 lakhs for services.

• Special category states: Threshold is ₹10 lakhs (North-East and hilly states).

• Goods: For supply of goods, the threshold is ₹40 lakhs in states notified by the government.

Aggregate turnover includes all taxable supplies, exempt supplies, exports, and inter-state supplies made under the same PAN but excludes GST and cess.

2. State-Wise Registration

GST is a destination-based and state-specific tax.

• A person who operates in more than one state must take separate registration for each state.

• Each registration is linked to a 15-digit GSTIN, where the first two digits indicate the state.

3. Persons Liable for Registration

• Individuals, partnerships, LLPs, companies, societies, HUFs, trusts engaged in supply of taxable goods or services.

• Persons making inter-state taxable supply of goods (compulsory registration).

• Agents or persons acting on behalf of another taxable person.

• Input service distributors.

• Persons supplying goods or services through e-commerce operators.

4. Voluntary Registration

Even if turnover is below the prescribed limit, a person may choose to register voluntarily.
Advantages:

• Eligible to claim input tax credit.

• Can legally collect GST from customers.

• Improves business credibility.

Exceptions Under Section 22

• Persons engaged exclusively in supply of goods or services that are exempt or non-taxable.

• Agriculturists supplying produce from cultivation. These categories do not require registration even if turnover exceeds the threshold.

Importance of Section 22

• Establishes the basic liability to register.

• Serves as the gateway to compliance.

• Provides clarity on turnover thresholds.

In essence, Section 22 ensures that significant taxpayers come under GST while relieving small-scale and exempt suppliers from compliance burdens.

SECTION 23 – PERSONS NOT LIABLE FOR REGISTRATION:

Section 23 provides a list of persons who are not required to register under GST, regardless of turnover.

1. Exclusive Supply of Exempt Goods/Services

If a person is engaged only in the supply of exempted goods or services, such as unprocessed agricultural produce, health services, or educational services, they do not need to register.

2. Agriculturists

Agriculturists supplying produce from cultivation of land are not liable to register. This ensures farmers are kept outside the GST framework.

3. Turnover Below Threshold

Persons whose aggregate turnover is below the prescribed limit (₹20 lakh/₹10 lakh/₹40 lakh) are not required to register.

4. Government’s Power to Notify

The government may notify specific categories of persons who are exempt from registration. For example:

• Certain service providers under reverse charge.

• Persons dealing in goods notified for compulsory registration under Section 24.

Impact of Section 23

• Reduces the compliance burden on small and exempt suppliers.

• Protects agriculturists and small businesses.

• Ensures focus on taxpayers who contribute significantly to GST revenue.

Examples

• A person exclusively supplying milk (exempt) is not required to register.

• A yoga instructor working under exempt category (if exempted through notification) does not need registration.

Section 23 ensures simplification by excluding low-value and exempt businesses from unnecessary compliance.

SECTION 24 – COMPULSORY REGISTRATION IN CERTAIN CASES:

This section identifies specific cases where registration is compulsory, even if turnover is below the prescribed threshold. These cases are exceptions to Section 22.

1. Inter–State Suppliers

Any person engaged in inter-state supply of goods must register compulsorily.

• Example: A trader in Delhi supplying goods to Haryana must register, regardless of turnover.

(Note: For inter-state services, exemption exists up to threshold limit.)

2. Casual Taxable Person

A casual taxable person temporarily supplying goods or services in a taxable territory where they do not have a fixed place of business must register, irrespective of turnover.

3. Non–Resident Taxable Person

Non-resident suppliers providing goods or services in India must register compulsorily.

4. Reverse Charge Mechanism

Persons who are liable to pay tax under reverse charge must register, even if turnover is below the threshold.

5. E–Commerce Operators

• Operators: E-commerce platforms (like Amazon, Flipkart) must register.

• Suppliers through E-commerce: Persons supplying through such operators must also register.

6. Input Service Distributor (ISD)

ISDs distributing credit of tax paid on input services to their branches must register regardless of turnover.

7. TDS/TCS Deductors

Entities responsible for Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) must compulsorily register.

8. OIDAR Service Providers

Providers of Online Information and Database Access or Retrieval (OIDAR) services from outside India to unregistered persons in India must register.

Section 24 ensures comprehensive tax compliance in high-risk or specialized categories where revenue leakage is possible.

SECTION 25 – PROCEDURE FOR REGISTRATION:

Section 25 specifies the process for obtaining GST registration.

1. Application

• Apply online via the GST portal

• PAN, Aadhaar, mobile number, and email verification are required.

2. Documentation

Required documents:

• PAN of business

• Aadhaar of proprietor/partners/directors

• Business address proof

• Bank account details

• Constitution of business (Partnership Deed/Certificate of Incorporation)

3. Verification

After submission, the application is verified by the proper officer. Aadhaar authentication speeds up approval.

4. Allotment of GSTIN

Once approved, a 15-digit GSTIN and registration certificate are issued. GSTIN is mandatory for all compliance like filing returns, tax payments, and ITC claims.

5. Suo-Motu Registration

The officer may grant temporary registration in cases where a person is liable but has not applied.

6. Multiple Registrations

• Separate GSTIN for each state of operation.

• Multiple business verticals in a single state may also register separately.

7. Display of Certificate

The registration certificate must be displayed at the principal place of business.

Importance of Section 25:

• Provides a structured, transparent process.

• Ensures uniformity and digital compliance.

GST Registration Provisions (CGST Act, 2017)