Registration of GTA in each State

[Prakhar Jain]

If a GTA is under FCM 12%, and has its booking offices at various states, whether it has to take GST registration at all the States?

Also, kindly share your opinion on the action that the department can take, and the Penalty that may be imposed, if the GTA takes only a single registration, and the department raises the issue of requirement of registration in each state.

(Side note: I think as far as the tax liability is concerned, even if it takes a single registration and issues IGST bills wrt services supplied outside the state, the Tax impact to the government revenue (both central and state) remains the same, as compared to when it takes registration in each state and issues CGST/ SGST bills. So there may not be any demand of tax at least)

[Ganeshan Kalyani]

Sec 22. (1) of CGST Act, states that " Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, fromwherehemakesataxablesupply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees:..."

The above provision states that a taxable person has to register in the State from where he supplies the taxable goods or services. In view of the said provision you are liable to register in each state where you have booking offices.

[YAGAY andSUN]

Threshold limit is now ₹ 40 Lacs for goods and for services it is 20 Lacs.

AI Summary

Registration in each State required where taxable supplies originate; single-state registration may be non-compliant for multi-state suppliers. Section 22(1) of the CGST Act requires a taxable person to obtain registration in the State or Union territory from which taxable goods or services are supplied once the applicable aggregate turnover threshold is exceeded. For a Goods Transport Agency with booking offices in multiple States, this provision obliges state-wise registration in each State from which it effects taxable supplies; failure to do so may be treated as non-compliance by tax authorities.