Persons liable for registration Section 22 - GST Ready Reckoner - GST

Persons liable for registration Section 22 of the CGST Act provides that: (1) Threshold limits for registration Registration for other than special category state :- 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 applicable threshold limit. Registration for special category:- 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 applicable threshold limit. Enhance threshold limit :- the government may by notification enhance the aggregate turnover from ten lakh rupees to such amount, not exceeding twenty lakh rupees. Also in case of supplier who is engaged exclusively in the supply of goods, 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 ( Note : W.e.f. 01.04.2019 the basic limit beyond which obtaining registration becomes mandatory for sale of goods is increased from Rs. 20 lakhs to Rs. 40 lakhs for Normal Category States and Rs. 10 lakhs to Rs. 20 lakhs for special category states vide notification No. 10/2019-Central Tax, dated 07.03.2019. ) Explanation . For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount. (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) Transfer of business : 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) Person liable for registration in case Transfer of business pursuant by order of court: 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 Persons therein are liable for registration. Appointed day : In terms of Section 2(10) of the CGST Act, appointed day means the date on which the provisions of this Act shall come into force. i.e. 1st July 2017.