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People who are liable for registration under section 22 of the GST Act will be discussed on
different grounds to understand the implications of registration under this section.
1) SEC 22(1):
Every supplier comes under this act in the State or Union territory other than
special category states, where person makes turnover more than 20 lakhs in a
financial year for a supply of taxable goods and services.
For the special category States threshold limit is reduced to rupees 10 lakhs.
Eg: 1.1
Mr. Umesh Yadav runs retail garment store in Bangalore and purchase
finish products from Delhi. The aggregate turnover for the financial year 2017
was 30 lakhs. Thus he is liable to be registered under the GST Act in the State &
Union Territory.
Eg: 1.2
Mr. Y has wholesale business who deals with dry fruits. He supplies from
Assam to Mumbai. His turnover must be more than 10 lakhs then he is liable to be
registered under the act because he is a supplier from a special category state so it
cut down to 10 lakhs.
2) SEC 22(2):
Every person on the day of appointed or holds a license or registered day will be
applicable under existing law with the immediate effect.
Eg: 2.1
Mr. M started commences business on Jan 1st 2017 and immediately he
will be liable to pay tax from day of registration.
3) SEC 22(3):
When a business of a taxable person registered, under the Act is transferred due to
succession shall be liable to registered & applicable for law from the date of such
transfer or succession.
Eg: 3.1
Mr. Shikhar Dhawan is a taxable person registered under this act due to
some reason. His son might become the successor, then he shall be liable to
registered with effect from the date of such transfer or succession.
4) SEC 22(4):
5) SEC 22(5):
Aggregate Turnover includes the total supplies made by the taxable person by him
or his successor in his account.
Special Category States shall mean as states defined as under Sub-clause (g) of
clause 4 of article 279A of the Constitution.
ANALYSIS:
2) Aggregate Turnover:
The term aggregate turnover is defined under section 2(6) of GST Act.
The aggregate turnover depends on the value of outward supplies i.e;
Taxable supplies
Exempt supplies
Exports
Inter-state supplies of persons having same PAN number shall be computed on all India
basis.
Other factors coming under are;
CGST
SGST
UTGST
IGST
Compensation cess.
Value of inward supplies on which tax is payable under reverse charge.
To understand the term Aggregate Turnover we can use different instances;
A. Aggregate Turnover to include total turnover of all branches with same PAN.
If in case, A dealer X has two offices one in Bangalore and another in Hyderabad and to
determine whether X is liable for registration, both the offices turnover is taken to see if it
exceeds RS 20 lakhs and it will be reduced to RS 10 lakhs if any of the office is in special
category states.
If they meet the threshold limit, then X is liable for registration.
C. Aggregate turnover include all supplies made by the taxable person whether on his own
account or made on behalf of all his principals.
When Silk Enterprises appoints M/S George & associates as its agent and all supplies
made by M/S George & associates will be included in the aggregate turnover of M/S
George & associates.
3) Registration requires only for a place of business from where taxable supply takes
place.
A person should be registered with respect to his each place of business in India from
where taxable supply has taken place. So a supplier is not liable to obtain registration if
his aggregate turnover consists exclusive of goods and services.
4) Tax payers registered under earlier indirect tax laws required to migrate
All the taxpayers who had been registered in earlier indirect tax law are liable to
be registered under GST which effect from appointed day on 22nd July, 2017.
Such taxpayers will be issued with a provisioned ID & Password by their
respective tax department to login on GST common portal. They need to fill up
the required details & upload the required documents. Later on they will be
provided the required details on ARN (Application Reference Number) are
communicated to them.
Upon enrollment the said person will be granted a provision registration
certificate & they would receive a provision GSTIN which will be available in
common portal
Final registration certificate & GSTIN will be granted within 6 months of the
appointed day.