Section 22 – Persons Liable for Registration

Sub-section 1:

  1. Every supplier shall be liable to be registered under this Act (CGST/SGST and IGST Acts)
  2. In the State or Union territory from where he makes a taxable supply of goods or services or both
  3. Other than special category States (Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand),
  4. If his aggregate turnover in a financial year exceeds Rs. 20 Lakhs. (Rs. 10 Lakhs in case of Special Category Sates)

Provisos to Sub-Section 1:

  1. Limit is Rs. 10 Lakhs for Special Category States: 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 Rs. 10 Lakhs.
  2. Rs. 10 Lakhs may be increased up to Rs. 20 Lakhs: 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. [w.e.f. 1st February 2019]
  3. Rs. 20 Lakhs may be increased up to Rs. 40 Lakhs for Exclusive Supply of Goods: 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. [w.e.f. 1st January 2020]

Explanation 1:

Banking Services included under Exclusive Supply of goods: 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

Sub-Section 2:

Assessees under earlier Law are liable to be registered: Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day.

Sub-Section 3:

Transferee or Successor of a Registered Going Concern is liable to be registered: 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.

Sub-Section 4:

Transferee in Amalgamation/Merger/Demerger liable to register on the date of CIN: 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.

Explanation 2:

  1. Aggregate Turnover includes Turnover made as an Agent: The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals
  2. Supply from Job-worker to be included in the turnover of Principal: the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
  3. Definition of Special Category States: The expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution w.r.e.f. 8th July 2017[except the State of Jammu and Kashmir] w.e.f. 1st February 2019[and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand].