{"id":71358,"date":"2025-05-19T15:11:10","date_gmt":"2025-05-19T09:41:10","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=71358"},"modified":"2025-05-19T15:11:14","modified_gmt":"2025-05-19T09:41:14","slug":"person-liable-for-registration-under-gst-section-22","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/person-liable-for-registration-under-gst-section-22\/","title":{"rendered":"Person Liable for Registration Under GST Section 22"},"content":{"rendered":"\n<div class=\"wp-block-group has-background\" style=\"background-color:#f2f5f9\"><div class=\"wp-block-group__inner-container is-layout-constrained wp-block-group-is-layout-constrained\">\n<h3 class=\"wp-block-heading\"><strong>Key Takeaways <\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>GST registration is required if turnover exceeds \u20b920 lakh (services) or \u20b940 lakh (goods), with lower limits for special category states.<\/li>\n\n\n\n<li>Businesses registered under VAT, service tax, or excise must re-register under GST.<\/li>\n\n\n\n<li>New registration is needed in cases of business transfer, succession, merger, or demerger.<\/li>\n\n\n\n<li>Aggregate turnover includes all supplies (taxable, exempt, exports), excluding GST taxes.<\/li>\n\n\n\n<li>Only registered entities can claim input tax credit, making registration advantageous.<\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n<p>Under the GST system, individuals and businesses dealing in taxable supplies have to register themselves to comply with tax rules. Section 22 of the CGST Act, 2017 relates to the provisions regarding persons chargeable to GST registration.<\/p>\n\n\n\n<p>It mandates compulsory registration for businesses exceeding a specified turnover threshold and for certain categories of suppliers. It also defines the turnover, the inclusions and exclusions of special category states in India and the GST registration requirements due to mergers and demergers. <\/p>\n\n\n\n<p>Explore the details of a person liable to register under GST Section 22 here.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Liability of GST Registration Under Section 22\u00a0<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Liability-of-GST-Registration-Under-Section-22-.png\" alt=\"Liability of GST Registration Under Section 22\u00a0\" class=\"wp-image-71466\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Liability-of-GST-Registration-Under-Section-22-.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Liability-of-GST-Registration-Under-Section-22--300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Liability-of-GST-Registration-Under-Section-22--150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Liability-of-GST-Registration-Under-Section-22--768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>Suppliers of goods and services are liable to register under GST if their aggregate annual turnover exceeds 20 lakh rupees (for services) or 40 lakh rupees (for goods) in states and<a href=\"https:\/\/www.ebsco.com\/research-starters\/politics-and-government\/union-territory\" target=\"_blank\" rel=\"noopener\"> union territories of India. <\/a>In other words, if taxable persons provide taxable supplies with the mentioned annual turnover threshold, they have GST liability. However special category states like Mizoram, Nagaland, Manipur and Tripura have a registration threshold of 20 lakh rupees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Pre-Existing Registrations<\/strong><\/h2>\n\n\n\n<p>Registered person under previous tax laws such as VAT (Value-added Tax), service tax or excise need to register themselves under GST. For instance, if the supply of goods and the supply of services provided by a supplier (earlier and after GST introduction) are not exempt supply, he\/she has to register under GST. This ensures tax compliance in India while promoting transparency and <a href=\"https:\/\/www.techtarget.com\/whatis\/definition\/accountability\" target=\"_blank\" rel=\"noopener\">accountability.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Business Transfer Or Succession<\/strong><\/h2>\n\n\n\n<p>If there is a transfer of ownership of a business or succession, the new owner needs to obtain GST registration separately, applicable from the date of transfer. This aligns the new GSTIN with the owner\u2019s unique PAN card number for further transactions.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Arrangement of Amalgamation &amp; Demerger<\/strong><\/h2>\n\n\n\n<p>If there is a merger due to acquisition, or a demerger under the Tribunal order or High Court, the <a href=\"https:\/\/brainly.in\/question\/23946446\" target=\"_blank\" rel=\"noopener\">transferee company <\/a>needs to register under GST separately. The applicable date is the date of incorporation that the Registrar of Companies issues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Important Definitions:<\/strong><\/h2>\n\n\n\n<p>Here are the important associated definitions under GST:<\/p>\n\n\n\n<p>\u25cf\u00a0\u00a0Aggregate Turnover: Aggregate turnover of a business in India is the taxable, exempt, export, inter-state supplies undertaken by an individual within the country. Notably, it excludes taxes under the GST system. Further, tax liability differs under the reverse charge mechanism wherein the purchaser pays GST.<\/p>\n\n\n\n<p>\u25cf\u00a0\u00a0Special Category States: Article 279A(4)(g) defines Northeastern and hilly states under this category. However, it excludes Assam, Arunachal Pradesh, Himachal Pradesh, Sikkim, Meghalaya, and Uttarakhand.<\/p>\n\n\n\n<p>\u25cf\u00a0Job Work Transactions: When a registered job worker considers job work as the supplies of the principal after completion of job work, it is excluded from the job worker&#8217;s turnover.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"66. Person Liable for Registration under GST | Section 22 - Part 1\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/PghMwpQxmHM?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Related Concepts Under GST Section 22<\/strong><\/h2>\n\n\n\n<p>In addition to the threshold-based liability for registration under Section 22, there are other essential elements to consider for full compliance under the GST regime. These include input tax credit, categories of registration, the extent of supply, and the application for registration process.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Categories of Persons and Registration Liability<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Categories-of-Persons-and-Registration-Liability.png\" alt=\"Categories of Persons and Registration Liability\" class=\"wp-image-71468\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Categories-of-Persons-and-Registration-Liability.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Categories-of-Persons-and-Registration-Liability-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Categories-of-Persons-and-Registration-Liability-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Categories-of-Persons-and-Registration-Liability-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>The category of persons required to obtain GST registration includes individuals, Hindu Undivided Families (HUFs), companies, LLPs, and partnership firms, among others. Any taxable persons involved in the <a href=\"https:\/\/capital.com\/supply-definition\" target=\"_blank\" rel=\"noopener\">supply of products <\/a>or services above the notified aggregate turnover must apply for compulsory registration. <\/p>\n\n\n\n<p>In contrast, those below the threshold may still opt for voluntary registration to avail benefits such as the credit of input tax on business purchases and improved credibility.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Supply and Turnover Considerations<\/strong><\/h2>\n\n\n\n<p>The extent of supply plays a key role in determining registration liability. This includes both intra-State supply and inter-State supply of goods or services. It\u2019s important to note that all GST supplies, whether taxable or exempt, count toward aggregate turnover, although taxes charged under GST do not.<\/p>\n\n\n\n<p>The registration of persons engaged in intra-State supply is essential if the turnover threshold is breached, particularly in <a href=\"https:\/\/www.jagranjosh.com\/general-knowledge\/states-demanding-special-category-status-what-is-it-and-why-do-states-demand-it-1717946813-1\" target=\"_blank\" rel=\"noopener\">special category states.<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Input Tax Credit and Its Implications<\/strong><\/h2>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"900\" height=\"506\" src=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Input-Tax-Credit-and-Its-Implications.png\" alt=\"Input Tax Credit and Its Implications\" class=\"wp-image-71471\" title=\"\" srcset=\"https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Input-Tax-Credit-and-Its-Implications.png 900w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Input-Tax-Credit-and-Its-Implications-300x169.png 300w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Input-Tax-Credit-and-Its-Implications-150x84.png 150w, https:\/\/piceapp.com\/blogs\/wp-content\/uploads\/2025\/05\/Input-Tax-Credit-and-Its-Implications-768x432.png 768w\" sizes=\"auto, (max-width: 900px) 100vw, 900px\" \/><figcaption><\/figcaption><\/figure>\n\n\n\n<p>One of the critical benefits of GST registration is the eligibility to claim input tax credit. This allows businesses to offset the GST paid on purchases (inputs) against the<a href=\"https:\/\/www.kotaklife.com\/insurance-guide\/savingstax\/what-does-income-tax-payable-mean-in-financial-accounting\" target=\"_blank\" rel=\"noopener\"> tax payable<\/a> on outward supplies. However, only registered persons can avail credit of input tax, which encourages application for registration even in borderline turnover cases.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>TDS and Tax at Source<\/strong><\/h2>\n\n\n\n<p>Certain entities are required to deduct tax at source under GST. This typically applies to government departments or agencies making payments to suppliers. If you&#8217;re a recipient required to deduct TDS, registering under GST is mandatory, regardless of turnover, and forms part of the extended registration <a href=\"https:\/\/www.bajajfinserv.in\/liabilities-defination\" target=\"_blank\" rel=\"noopener\">liability framework<\/a> under Section 22.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion<\/strong><\/h2>\n\n\n\n<p>A registered person under GST Section 22 is defined based on the aggregate annual turnover of a business. Further, the location of the principal palace of business determines the GST liability. For instance, special category states have a separate annual turnover threshold. <\/p>\n\n\n\n<p>Ensure you are well-aware of the GST laws to comply with Indian tax laws in terms of goods and services supplies and compulsory registration.<\/p>\n\n\n\n<p class=\"has-background\" style=\"background-color:#f2f5f9\">\ud83d\udca1If you want to streamline your invoices and make payments via credit or debit card or UPI, consider using\u00a0<a href=\"https:\/\/piceapp.com\/\">the PICE App<\/a>. Explore the PICE App today and take your business to new heights.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>FAQs<\/strong><\/h3>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1747636912639\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Who is required to register under GST as per Section 22?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Any person or business involved in the supply of taxable goods or services must register under GST if their aggregate turnover exceeds \u20b920 lakh for services or \u20b940 lakh for goods in most states. However, for special category states like Mizoram, Nagaland, Manipur, and Tripura, the threshold is \u20b920 lakh for both goods and services.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1747636914920\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is considered as \u2018aggregate turnover\u2019 under GST?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Aggregate turnover includes the value of taxable supplies, exempt supplies, exports, and inter-State supplies made by a person on an all-India basis. It excludes taxes under GST like CGST, SGST, or IGST. This turnover is critical to determine whether a business needs to register under GST.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1747636922200\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Do businesses with old tax registrations (VAT, service tax, excise) need to register under GST?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, any business that was registered under previous tax laws like VAT, service tax, or excise must migrate to GST and obtain a new registration. This ensures uninterrupted compliance and allows such businesses to claim input tax credit and continue lawful supply operations under the new tax regime.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1747636927743\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What are the GST implications in case of a business transfer or succession?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>If a business is transferred or inherited, the new owner or successor is required to apply for GST registration from the date of transfer or succession. This aligns the new GSTIN with the PAN of the new entity and ensures that tax liabilities and compliance are maintained correctly.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1747636934624\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Is GST registration required in case of a merger or demerger?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Yes, in cases of amalgamation, merger, or demerger, the transferee entity must obtain a new GST registration from the date mentioned in the certificate of incorporation issued by the Registrar of Companies. This helps in segregating tax responsibilities and allows proper input credit management between entities.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Under the GST system, individuals and businesses dealing in taxable supplies have to register themselves to comply with tax rules. Section 22 of the CGST Act, 2017 relates to the provisions regarding persons chargeable to GST registration. It mandates compulsory registration for businesses exceeding a specified turnover threshold and for certain categories of [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":71464,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-71358","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst"],"_links":{"self":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/71358","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/comments?post=71358"}],"version-history":[{"count":9,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/71358\/revisions"}],"predecessor-version":[{"id":71472,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/posts\/71358\/revisions\/71472"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media\/71464"}],"wp:attachment":[{"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/media?parent=71358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/categories?post=71358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/piceapp.com\/blogs\/wp-json\/wp\/v2\/tags?post=71358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}