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Microlesson · 5-min read

Taxable Person and Registration Framework under GST

# Taxable Person & Registration Framework

## Who is a "Taxable Person"?

The GST charging section says: "Tax is to be collected and paid by the Taxable Person."

A Taxable Person means:

  • A person registered under GST, OR
  • A person liable to be registered under GST.

### Important implications

  • ✓ Every registered person is automatically a taxable person.
  • ✓ An unregistered person can also be a taxable person if he was liable to register (but defaulted).
  • ✓ Every voluntarily registered person is also a taxable person, even though he was not initially obliged to register.

## Three Sections that determine registration requirement

SectionSubject
Section 22Persons liable for registration based on turnover criteria
Section 23Persons NOT liable for registration
Section 24Persons liable for compulsory registration (irrespective of turnover)

## Where & When (high-level)

  • Where: Only in the State/UT from where taxable supplies are made.
  • State-wise: Registration is granted state-wise; there is no concept of centralised registration in GST.
  • When: As soon as the aggregate turnover crosses the specified threshold (Sec. 22) or one of the compulsory triggers under Sec. 24 occurs.

## Reading order for this chapter

1. Understand aggregate turnover (the measuring stick).

2. Apply Section 22 thresholds.

3. Check whether any Section 24 trigger applies (overrides turnover).

4. Check whether Section 23 exempts you.

5. Follow the procedure under Section 25.

Worked example

### Example 1

Example — Taxable Person check

Mr. P has turnover of ₹15 lacs in Maharashtra (a 40-lac state) and has NOT registered. He is liable to register? No — turnover is below threshold. Is he a taxable person? No.

Mr. Q has turnover of ₹50 lacs in Maharashtra and has NOT registered. He is liable to register? Yes. Is he a taxable person? Yes — even though unregistered, he is liable to be registered.

⚠️ Common exam mistakes

  • Assuming only registered persons are taxable — unregistered persons who are liable to register are also taxable persons.
  • Treating a voluntarily registered person as 'not really a taxable person' — they are fully taxable.
  • Trying to take a single centralised registration across India — registration is state-wise.
Bare-Act text Section 2(107) · CGST Act, 2017 · click to expand
As per section 2(107) of the CGST Act, 2017, 'taxable person' means a person who is registered or liable to be registered under section 22 or section 24.
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