Compulsory Registration under GST- Section 24 of CGST Act
Under GST laws, it is compulsory to obtain GST registration in case the aggregate annual turnover from supply of goods or services or both of a person is more than Rs. 20 Lakhs/Rs. 40 Lakhs turnover threshold. However, Section 24 of the CGST Act, 2017 prescribes certain cases where you are compulsorily required to obtain a GST registration without looking into turnover threshold of Rs. 20 Lakhs/ Rs. 40 Lakhs. Let's have a look...
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be compulsory required to be registered under GST according to section 24 (clause i to xii) of the CGST Act:
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Persons making any inter-state taxable supply |
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Casual taxable persons making taxable supply |
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Persons who are required to pay tax under reverse charge |
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Person who are required to pay tax under sub-section (5) of section 9 |
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Non-resident taxable persons making taxable supply |
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Persons who are required to deduct tax under section 51, whether or not separately registered under this Act |
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Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise |
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Input service distributor, whether or not separately registered under this Act |
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Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52 |
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Every electronic commerce operator who is required to collect tax at source under section 52 |
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Every person supplying online information and database retrieval services from a place outside India to a person in India, other than a registered person |
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Such other person or class of persons as may be notified by the Government on the recommendation of the council |
Analysis of Section 24:
Section 24 starts with non-obstante clause “notwithstanding anything contained in sub-section (1) of section 22”. Section-22 states about the cases where a person is required to be registered under GST law based on threshold turnover limit. Thus, in the case of categories of persons covered by section 24, the GST registration shall be mandatory irrespective of their turnover. It means that a person falling under any of the clauses of section 24 shall be liable to register under GST even if his/ her turnover is negligible.
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