# Section 22: Persons Liable for Registration

## I. Applicability [Section 22(1)]

A supplier of goods/services/both must obtain registration in the State/UT from where he makes a taxable supply, if his aggregate turnover exceeds the specified threshold in a financial year.

## Aggregate Turnover [Section 2(6)]

INCLUDES	EXCLUDES
All taxable supplies	CGST / SGST / UTGST / IGST / Cess
Exempt supplies	Value of inward supplies on which tax is payable under RCM
Exports of goods/services
Inter-State supplies of persons having the same PAN

Notes:

Computed on an all-India basis (PAN-level).
Includes supplies on own account AND on behalf of principals.

## Threshold Limits for Registration

State Category	Threshold (Services or Services + Goods)	Threshold (Goods only — see exceptions below)
4 Special Category States: Manipur, Mizoram, Nagaland, Tripura	₹10 lakh	₹10 lakh
Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand, Puducherry, Telangana	₹20 lakh	₹20 lakh
All other States (incl. J&K, Assam, HP)	₹20 lakh	₹40 lakh (Notif. 10/2019-CT dt 07.03.2019)

## ₹40 Lakh Threshold for Goods — Exceptions (₹40L Does NOT Apply)

The ₹40 lakh exemption is unavailable to:

1. Persons requiring compulsory registration u/s 24.

2. Persons supplying:

Ice cream and other edible ice (HSN 2105 00 00)
Pan masala (HSN 2106 90 20)
All goods of Chapter 24 (tobacco)
Fly ash bricks/aggregates/blocks (6815)
Bricks of fossil meals (6901 00 10)
Building bricks (6904 10 00)
Earthen/roofing tiles (6905 10 00)

3. Persons making intra-State supplies in: Uttarakhand, Puducherry, Meghalaya, Arunachal Pradesh, Telangana, Sikkim, and the 4 Special Category States.

4. Persons making inter-State supplies of goods (compulsory registration u/s 24).

5. Voluntarily registered persons or those who choose to continue registration.

> Note: Exempt interest/discount income (deposits, loans, advances) does NOT disqualify a person from being treated as 'exclusively supplying goods' for the 40-lakh test.

## Registration Tied to Place of Taxable Supply

Situation	Conclusion
Taxable supplies made from a State/UT	Registration required
Only exempt/non-taxable supplies made from a State/UT	No registration
Supply received in a State (not made from there)	No registration
Temporary services in another State without fixed establishment (e.g., repairs, transport, security, erection)	No registration
Only liaison/marketing office with no taxable supplies	No registration

₹10 lakh applies ONLY when taxable supply is made FROM one of the 4 Special Category States.

## II. Other Triggers for Registration

Sec 22(2): Persons holding a license under existing law on the appointed day → registered from the appointed day.
Sec 22(3): Transfer of business as a going concern (succession, change of ownership, death of sole proprietor) → transferee/successor registers from date of transfer/succession.
Sec 22(4): Amalgamation/de-merger by court/tribunal order → transferee registers w.e.f. date of issue of ROC's certificate of incorporation.

Worked example

### Example 1

Example 1 (Uday Enterprises — mixed states): Uday makes taxable supplies of goods from Maharashtra (₹34 lakh) and supplies non-taxable alcoholic liquor from Nagaland (₹8 lakh). Aggregate turnover = ₹42 lakh (PAN-India). Since taxable supplies are made only from Maharashtra (which permits the ₹40 lakh threshold for goods), and Nagaland supply is non-taxable, threshold is NOT reduced to ₹10 lakh. Crossing ₹40 lakh → registration required in Maharashtra only.

### Example 2

Example 2 (Pan masala dealer): A trader in Delhi exclusively sells pan masala with turnover ₹25 lakh. Even though he is 'exclusively engaged in supply of goods', pan masala is excluded from the ₹40 lakh exemption → ₹20 lakh threshold applies → registration required.

### Example 3

Example 3 (Service provider in Tripura): Consultant in Tripura earns ₹12 lakh in a FY. Tripura is a Special Category State → threshold is ₹10 lakh → registration required.

### Example 4

Example 4 (Going concern transfer): Mr. A's proprietorship is sold to Mr. B on 15-Jun. Mr. B is liable to register from 15-Jun (Sec 22(3)) regardless of his independent turnover.

⚠️ Common exam mistakes

Applying ₹10 lakh threshold in Assam/HP/J&K — these are NOT special category states for GST registration (only Manipur, Mizoram, Nagaland, Tripura are).
Including taxes (CGST/SGST/IGST/Cess) and RCM-inwards in aggregate turnover.
Computing aggregate turnover State-wise instead of PAN-India.
Applying ₹40 lakh threshold to ice cream, pan masala, tobacco, brick makers — they are excluded.
Forgetting that ₹40 lakh is only for 'exclusively goods' suppliers in non-listed States.
Reducing threshold to ₹10 lakh when supply from a special category State is only non-taxable (e.g., alcoholic liquor).
Failing to register a transferee on the date of going-concern transfer.

Bare-Act text Section 22 · CGST Act, 2017 · click to expand

Section 22(1): Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees. Section 22(3): Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.

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Section 22 - Persons Liable for Registration & Threshold Limits

Worked example

⚠️ Common exam mistakes