Liability to take Registration

[Pradeep Singhi]

Individual not registered under GST (unregistered person) providing service of renting of immovable property (commercial) to registered person and having interest income (from unsecured loan).

Aggregate Turnover from aforesaid services cross threshold limit of Rs.20 Lakh. Query with regards to aforesaid situation are as mentioned below.

1. Whether that unregistered person is required to take registration under GST as per S.22 of CGST Act ?

2. Whether that unregistered person can take benefit of S.23(2) of CGST Act read with Notification no. 5/2017-CT dated 19.06.2017 and Entry no. 5AB inserted in Not. No. 13/2017- CT(Rate) ?

3. Will answer to point no. 2 differ. if interest income is "Zero" and rent income cross threshold limit of Rs. 20 Lakh ?

AI Summary

GST registration requirement: suppliers under reverse charge must register if aggregate turnover exceeds the statutory threshold.
An unregistered supplier of commercial immovable property supplied under the reverse charge mechanism must take GST registration when aggregate turnover exceeds the threshold; interest income is to be included in aggregate turnover for this purpose, and the notification exempting certain RCM suppliers from registration applies only where the entire category of supply is subject to RCM and the recipient is invariably liable, not to suppliers captured by the alternate RCM category.