PERSON REQUIRED TO TAKE REGISTRATION - Handbook of GST Law & Procedures (CBIC) [October 2024] - GST

2. PERSON REQUIRED TO TAKE REGISTRATION 2.1. GST registration can be obtained voluntarily by any person or entity who is engaged in supply of goods or services or both irrespective of turnover. However, GST registration becomes mandatory if a person or entity supply goods or services or both beyond a certain turnover. Chapter VI of CGST Act, 2017 contains legal provisions related to Registration. The threshold limit for availing exemption from registration is as follows Service Providers: Any person or entity engaged in supply of services having aggregate turnover of more than Rs. 20 lakhs in a year is required to obtain GST registration. In special category states, the GST turnover limit for service providers is Rs. 10 lakhs. Goods Suppliers: Any person who is engaged in the exclusive supply of goods, whose aggregate turnover crosses Rs. 40 lakhs in a year is required to obtain GST registration. 2.2. The following categories of persons are required to be registered under the GST Act:- 2.3. Aggregate Turnover: Aggregate turnover is calculated based on the PAN income. Hence, if one person has multiple places of business in one or more states, the turnover of each place of business must be summed up to arrive at the aggregate turnover on all India basis. Aggregate Turnover has been defined in Section 2(6) of the CGST Act, 2017. If the aggregate turnover crosses the threshold limit, then registration under GST has to be taken. As per Section 22 of CGST Act, 2017 the aggregate turnover includes all supplies made by the taxable person on his own or on behalf of his principles. The following elements are included in the aggregate turnover: 2.3.1 Taxable Supplies as per Section 2(108) of the CGST Act, 2017 means a supply of goods or services or both which is leviable to tax under this Act. Activities/transactions undertaken shall be considered as taxable supplies only when such activities/transactions qualify as a supply in terms of Section 7 of CGST Act, 2017 and such supplies are chargeable to tax in terms of Section 9 of CGST Act, 2017. 2.3.2 Exempt supply as per Section 2(47) of the CGST Act, 2017 means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under Section 11, or under Section 6 of IGST Act, 2017 and includes non-taxable supply. 2.3.3 Non-taxable supply as defined in Section 2(78) of the CGST Act, 2017 means a supply of goods or services or both which is not leviable to tax under the CGST Act, 2017 or under the Integrated Goods and Services Tax Act, i.e., supplies which are not leviable to tax are known as non-taxable supplies. Supplies which are excluded from the charging section i.e. Section 9 of CGST Act, 2017 are to be considered as non-taxable supplies as they are not leviable to tax under this Act. 2.3.4 Export of goods or services or both is treated as a zero-rated supply under GST. Export of goods means taking goods out of India to a place outside India. Export of services means the supply of any service when- (i) the supplier of service is located in India; (ii) the recipient of service is located outside India; (iii) the place of supply of service is outside India; (iv) the payment for such service has been received by the supplier of service in convertible foreign exchange or in Indian rupees wherever permitted by the Reserve Bank of India; and (v) the supplier of service and the recipient of service are not merely establishments of a distinct person in accordance with Explanation 1 in Section 8 of IGST Act, 2017. 2.3.5 Inter-State supplies to persons having same PAN . This covers the supply of goods or supply of services or both to persons located in other States/Union Territories but are under the same legal entity. These are taxable supplies under GST and are liable to tax even if such supplies are made without consideration.