Section 22
Section 22 specifies who is required to obtain GST registration based on their turnover.
Basic Rule
A person must obtain GST registration if their aggregate turnover in a financial year exceeds the prescribed threshold limit.
Current Threshold Limits
|
Type of Supply |
Threshold Limit |
|
Supply of Goods |
₹40 Lakhs* |
|
Supply of Services |
₹20 Lakhs |
|
Special Category States (generally) |
₹10 Lakhs |
*Subject to conditions and notifications issued by the Government.
What is Aggregate Turnover?
Aggregate turnover includes:
- Taxable supplies
- Exempt supplies
- Exports
- Inter-State supplies
On an all-India basis under the same PAN.
It excludes:
- GST taxes (CGST, SGST, IGST, Cess)
- Supplies on which tax is payable under reverse charge by the recipient
Example
Mr. A operates a trading business.
- Sales in Rajasthan: ₹28 Lakhs
- Sales in Gujarat: ₹15 Lakhs
Total Aggregate Turnover = ₹43 Lakhs
Since turnover exceeds ₹40 Lakhs, GST registration becomes mandatory.
Important Exceptions
Registration under Section 22 is not required if a person is exclusively engaged in:
- Supplying goods or services that are wholly exempt from GST.
- Activities that are neither supply of goods nor supply of services under GST.
Effective Date of Registration
A person becomes liable for registration from the day their turnover crosses the prescribed threshold limit.
Section 22 vs Section 24
|
Particulars |
Section 22 |
Section 24 |
|
Registration based on turnover |
Yes |
No |
|
Threshold limit available |
Yes |
No |
|
Mandatory registration irrespective of turnover |
No |
Yes |
In One Line
Section 22 requires a person to obtain GST registration when their aggregate turnover exceeds the prescribed threshold limit under GST law.
The content provided in this article is intended solely for educational and informational purposes and should not be construed as professional accounting, taxation, legal, or financial advice. Readers are advised to consult a qualified professional before making any financial, tax, legal, or business decisions based on the information contained herein.Disclaimer