Section 24
Section 24 lists the persons who must obtain GST registration irrespective of their turnover.**
Normally, registration depends on turnover under Section 22. But Section 24 overrides that rule for specific categories.
Who Must Register Compulsorily?
- Inter-State Taxable Suppliers
A person supplying taxable goods or services from one State to another must register under GST.
- Casual Taxable Persons
Someone who occasionally supplies goods or services in a State where they do not have a fixed place of business must register.
- Persons Liable to Pay Tax under Reverse Charge
If a person is required to pay GST under the reverse charge mechanism, registration is mandatory.
- Non-Resident Taxable Persons
Foreign businesses supplying goods or services in India must register.
- Persons Required to Deduct TDS under GST
Government departments and certain notified entities deducting TDS must register.
- Persons Required to Collect TCS under GST
E-commerce operators collecting tax at source must register.
- E-Commerce Operators
Persons operating digital platforms facilitating supply of goods or services must register.
- Persons Supplying Through E-Commerce Operators
Suppliers selling through online marketplaces may be required to register, subject to certain exceptions.
- Input Service Distributors (ISD)
Head offices distributing ITC to branches must register as ISD.
- Persons Supplying Online Information and Database Access or Retrieval (OIDAR) Services
Foreign suppliers providing digital services to unregistered persons in India must register.
- Other Notified Persons
The Government may notify additional categories for compulsory registration.
Example
- A provides consultancy services from Maharashtra to clients in Gujarat.
- Annual turnover = ₹8 Lakhs.
Even though turnover is below ₹20 Lakhs, GST registration is mandatory because he is making inter-State taxable supplies.
Section 22 vs Section 24
|
Particulars |
Section 22 |
Section 24 |
|
Basis of registration |
Turnover threshold |
Specified categories |
|
Threshold exemption available |
Yes |
No |
|
Registration mandatory even with low turnover |
No |
Yes |
Important Note
Some categories under Section 24 have been relaxed through notifications. For example, certain inter-State service providers and small suppliers through e-commerce platforms may get exemption from compulsory registration subject to conditions.
In One Line
Section 24 makes GST registration compulsory for certain categories of persons, even if their turnover is below the normal threshold limit.
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