SECTION 22 PERSON LIABLE FOR REGISTRATION
Section 22 of Goods and Services Tax Act, 2017 provides every supplier to be registered in the state from where he makes taxable supplies of goods or services or both if his aggregate turnover in a financial year exceeds Rs 20 Lakh.
However, for Special Category states he shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs 10 Lakh.
Explanation to Section 22 defines ‘Special Category States‘ as the states as specified in subclause (g) of clause (4)of Article 279A of the Constitution. Following are the list of States provided in Article 279A(4)(g) of the Constitution:
“Arunachal Pradesh, Assam, Jammu & Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, Uttarakhand”
Central Goods and Services Tax (Extension to Jammu and Kashmir) Act, 2017 has excluded State of Jammu and Kashmir from the definition of Special category States for the purpose of Section 22 of GST Act, 2017 with effect from 8 July 2017.
Further, Central Goods and Services Tax (Amendment) Act, 2018 has excluded the States of Arunachal Pradesh, Assam, Meghalaya, Sikkim, Himachal Pradesh, and Uttarakhand from the definition of Special category States for the purpose of Section 22 of GST Act, 2017 with effect from 1 Feb 2019.
NOTIFICATION NO- 10/2019-CT RAISING MINIMUM THRESHOLD FOR GOODS
Notification No.-10/2019- Central Tax has further exempted from obtaining registration for a person engaged exclusively in supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakh with effect from 1 April 2019 except persons making intrastate supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura and Uttarakhand.
Liability for Registration under GST Act, 2017 for various States can be summarized as under:
*Refer to Central Goods and Services Tax (Amendment) Act, 2018 for change in the definition of Special Category States
(For any clarifications author can be reached at ca.hsinghal@gmail.com)
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