GST registration is an important step for the person starting a business in India. Taking GST
registration can be a voluntary decision or a mandatory provision as per the GST law. There are provisions
under which a person is liable to register his business under the GST law and no exemption is provided.
Also, there are exemptions under which a person is not liable to take GST registration. The provisions and
the person liable and not liable to take GST registration have been provided below and discussed in depth.
With this detailed content, we will try to make it easy for you to decide whether you should take GST
registration or not.
The Goods and services tax act has come into effect on 1st July 2017 and it incorporated various chapters
related to GST returns, GST registration, Place of Provision of goods and services, Time of supply of
goods and services and GST assessment proceedings. The chapters include provisions in relation to GST
registration which contains the provision relating to exemption from GST registration, the person liable
for GST registration and person not liable to take GST registration.
GST registration is completely an online process, where a person has to fill in the details of
proprietor/partners/directors and detail of the place of business. After completing the form and uploading
the mandatory documents, the application must be completed with Aadhar authentication. If all the filled
details and attached documents are complete in all respect and the proper officer is satisfied with
applicant’s details then GST registration number is allotted.
Section 22(1) of CGST act specifies that every person whose aggregate turnover in a financial year exceeds
Rs. 20 lakhs is liable to get registered under the GST act. In special categories state turnover limit is
Rs.10 lakhs. The limit of Rs.20 lakhs has been increased to Rs.40 lakhs where a person exclusively deals in
goods. So, if you are dealing in service then limit of Rs.40 lakhs will not be available to you.
For Example: Mr. Adani deals in the supply of services in gurgaon. His total aggregate turnover is Rs. 38
lakhs during the current financial year. is he liable to obtain GST registration in gurgaon?
An exemption limit of Rs. 40 lakhs apply in case of a person dealing in goods. Mr Adani is dealing in supply
of services. Hence, he is liable to register himself under the GST act.