TaxTMI 
TaxTMI 
TaxTMI 
Registration
Section 22 of the Central Goods and Services Tax Act, 2017 (‘Act’ for short) provides for registration by every supplier under the Act. Section 22(1) of the Act that 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 Rs.20 lakhs. The proviso to section 22(1) provides 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 Rs.10 lakhs.
The Goods and Services Tax (Amendment) Act, 2018 inserted second proviso to Section 22(1). The second proviso provides 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 ₹ 10 lakhs to such amount, not exceeding ₹ 20 lakhs and subject to such conditions and limitations, as may be so notified.
Supplier
Section 2(105) of the Act defines the term ‘supplier’ in relation to any goods or services or both, as the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied.
Aggregate turnover
Section 2(6) defines the expression ‘aggregate turnover’ as the aggregate value of all taxable supplies-
- exempt supplies,
- exports of goods or services or both; and
- inter-State supplies
of persons having the same Permanent Account Number, to be computed on all India basis but excludes-
- central tax,
- State tax,
- Union territory tax,
- integrated tax; and
- Cess.
The aggregate turnover also exclude the value of inward supplies on which tax is payable by a person on reverse charge basis.
Person
The aggregate turnover of the following persons exceeding the threshold limit is liable to registration as supplier under GST Act-
- an individual;
- a Hindu Undivided Family;
- a company;
- a firm;
- a Limited Liability Partnership;
- an association of persons or a body of individuals, whether incorporated or not, in India or outside India;
- any corporation established by or under any Central Act, State Act or Provincial Act or a Government company as defined in clause (45) of section 2 of the Companies Act, 2013
- any body corporate incorporated by or under the laws of a country outside India;
- a co-operative society registered under any law relating to co-operative societies;
- a local authority;
- Central Government or a State Government;
- society as defined under the Societies Registration Act, 1860
- trust; and
- every artificial juridical person, not falling within any of the above.
Special category States
Explanation (iii) to section 22 defines the expression ‘special category States’ as the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
GST Council meeting
The GST Council in its 32nd meeting held on 10.01.2019 decided various issues. One among them is to increase the higher threshold limit for supplier of goods. According to the decision there would be two threshold limits for exemption from registration and payment of GST for the suppliers of goods i.e. Rs.40 lakhs and ₹ 20 lakhs. The States would have an option to decide about one of the limits. The threshold for registration for service providers would continue to be ₹ 20 lakhs and in case of Special category States ₹ 10 lakhs.
All the 29 States and 2 Union Territories were asked to select their option as to the threshold limit they want to raise the threshold limit or maintain status quo. It was one time measure of exercising the option. The increased threshold is for the benefit of micro, small and medium enterprises.
Effective date
The revised threshold limit as adopted by the States and the Union Territories will take effect from 01.04.2019.
Option of States
The following States/UTs opted to increase the threshold limit to ₹ 40 lakhs from ₹ 20 lakhs-
- Chhatisgarh;
- Jharkhland;
- Delhi;
- Bihar;
- Maharashtra;
- Andhra Pradesh;
- Gujarat;
- Haryana;
- Goa;
- Punjab;
- Uttar Pradesh;
- Jammu & Kashmir;
- Assam;
- Himachal Pradesh;
- Karnataka;
- Madhya Pradesh;
- Odisha;
- Rajasthan;
- Tamil Nadu; and
- West Bengal.
The following States/UTs opted to increase the threshold limit to ₹ 20 lakhs from ₹ 10 lakhs-
- Puducherry;
- Meghalaya;
- Mizoram;
- Tripura;
- Manipur;
- Sikkim;
- Nagaland;
- Aunachal Pradesh;
- Uttarakhand.
Kerala and Telengana maintain ‘status quo’ position. However time is up to 31.03.2019 to give their option to increase the threshold limit or maintaining status quo.
Reference: Business line