Indirect Tax Laws · Registration

Compulsory Registration and Special Cases under GST

Updated 5 October 2026

Compulsory registration means certain persons must register under GST even if their turnover is below the threshold. Section 24 lists them: inter-State suppliers, casual and non-resident taxable persons, reverse charge payers, TDS deductors, e-commerce operators, and others. To solve a question, match the facts to a Section 24 category, then check for any notified exemption.

Understand Compulsory Registration and Special Cases

GST registration is normally linked to turnover. A supplier below the aggregate turnover threshold need not register. Section 24 of the CGST Act switches this off for certain categories. These persons must register from the start, whatever their turnover.

The reason is control. Some persons make supplies across States, have no fixed base in the State, or collect or pay tax for someone else. The department cannot track them if they stay unregistered. So the law ties registration to the nature of the person or transaction, not to turnover.

The main categories in Section 24 are:
- Persons making inter-State taxable supplies, subject to notified exemptions.
- Casual taxable persons making taxable supplies.
- Persons liable to pay tax under reverse charge. A notified exemption can apply to some recipients, for example a person who is only a recipient of reverse charge supplies, so check it before concluding.
- Non-resident taxable persons making taxable supplies.
- Persons required to deduct tax at source (TDS) under section 51. These are the specified persons under that section, such as government departments and local authorities.
- Persons who supply goods or services on behalf of other taxable persons, whether as agent or otherwise.
- Input service distributors.
- Persons supplying goods or services through an e-commerce operator who is required to collect tax at source under section 52, other than supplies covered by section 9(5). Relief is notified for some of these suppliers, so check the notification before concluding.
- E-commerce operators who are required to collect tax at source under section 52. This is covered irrespective of turnover. An operator that is not required to collect tax at source under section 52 does not fall in this category.
- Persons supplying online information and database access or retrieval (OIDAR) services from outside India to a person in India other than a registered person.
- Any other class of persons notified by the Government.

Two special cases are examined most. A casual taxable person occasionally supplies taxable goods or services in a State or Union territory where he has no fixed place of business, for example a trade fair stall. A non-resident taxable person occasionally makes taxable supplies in India but has no fixed place of business or residence in India. The key differences are the registration timing, validity period, advance deposit and the bar on composition.

A non-resident taxable person applies through an authorised signatory who is resident in India and holds a PAN. The non-resident person itself may use its PAN or another prescribed document, such as a tax identification number issued in its home country, or a passport in the case of an individual.

The Government has issued notifications that relax some of these categories. For example, inter-State suppliers of services below a notified limit are exempt from registration, and there are specific notified exemptions for certain inter-State suppliers of goods, such as certain handicraft suppliers. A notified exemption can also apply to some recipients of reverse charge supplies. Suppliers selling through e-commerce operators have relief in notified cases, so the supplier category applies only to supplies other than those under section 9(5), and only where relief is not notified. Always check the facts for such relief before concluding that registration is compulsory. State only the relief you are sure of.

Key rules to remember

Section 24 rule: Listed category → registration compulsory, irrespective of turnover; The threshold test in section 22 does not apply to these persons, unless a notification exempts them. For example, a notified exemption can apply to a person who is only a recipient of reverse charge supplies, so check it before concluding. The e-commerce categories carry a condition tied to section 52. An e-commerce operator is covered only if it is required to collect tax at source under section 52. A supplier through an operator is covered only if the operator is required to collect tax at source under section 52, for supplies other than those under section 9(5), and only where relief is not notified. So the section 52 condition applies to both the operator category and the supplier category, with notified relief for certain suppliers.
Casual taxable person (definition): Occasional taxable supplies + no fixed place of business in that State/UT; The test is the State or Union territory of supply, not India as a whole.
Non-resident taxable person (definition): Occasional taxable supplies + no fixed place of business or residence in India; The test is India as a whole. The person may be a foreign entity or individual.
Timing of application: Casual taxable person / non-resident taxable person: apply at least 5 days before commencing business; registration must be granted before business starts; Other persons liable under section 22 or 24 apply within 30 days of becoming liable. Casual and non-resident taxable persons are the exception to this 30-day period. A non-resident taxable person applies through an authorised signatory who is resident in India and holds a PAN. The person itself may use its PAN or another prescribed document, such as a tax identification number or, for an individual, a passport.
Validity of registration: Period in application or 90 days from effective date, whichever is earlier; extendable by up to 90 days by the proper officer; Under section 27. Applies to both casual and non-resident taxable persons. Extension needs an application before expiry.
Advance deposit: Casual taxable person / non-resident taxable person: deposit estimated tax liability for the period of registration; Deposit is made in the electronic cash ledger when applying, and before the registration is granted.
Composition: Casual taxable person and non-resident taxable person cannot opt for composition levy; Composition under section 10 is not available to them.

How to solve Compulsory Registration and Special Cases questions

Use this method for any question asking whether a person must register, or what special rules apply to the registration.

1Identify the person and what they do: supplier, recipient, agent, platform, or foreign party.
2Check whether the supply is taxable. Under section 23, a person making only wholly exempt or non-taxable supplies is not liable to register under section 22. Section 24 categories such as an input service distributor, a TDS deductor or a person liable under reverse charge may still be liable, so go on to the next step.
3Match the facts to a Section 24 category: inter-State, casual, reverse charge, non-resident, TDS, agent, ISD, e-commerce operator (where it is required to collect tax at source under section 52), supplier through an e-commerce operator (other than supplies under section 9(5), where the operator is required to collect tax at source), OIDAR or notified class.
4If it fits a category, state that registration is compulsory irrespective of turnover. Do not apply the threshold.
5Check whether a notification gives relief. Examples are inter-State supplies of services below the notified limit, certain notified inter-State supplies of goods, small suppliers through e-commerce operators, and some recipients of reverse charge supplies. Mention relief only if you are sure of it.
6For a casual or non-resident taxable person, apply the special rules: application at least 5 days before commencement, registration granted before business starts, validity of 90 days, extension, advance deposit, and no composition.
7Distinguish casual from non-resident by the fixed-place test: State level for casual, India level for non-resident.
8Write the conclusion in provision, facts, conclusion form.

Quickest way: Category-and-test shortcut

When to use it: Use this for MCQs and short case scenarios where you must say quickly whether registration is compulsory.

Ask: does the person do anything across a State border, on someone else's behalf, or through a platform? If yes, suspect Section 24.
Ask: does the person have a fixed place of business in this State? No means casual. No fixed place or residence in India means non-resident.
Ask: is the person liable to pay tax under reverse charge, or required to deduct TDS? If yes, registration is compulsory, but for a reverse charge recipient check whether a notified exemption applies.
Ignore the turnover figure if a category applies. It is usually the distractor.
For casual or non-resident, remember the numbers: apply 5 days before, registration granted before business starts, 90 days validity, 90 days extension, advance deposit.

Common mistakes in Compulsory Registration and Special Cases

Applying the turnover threshold to a casual taxable person or non-resident taxable person
Students remember the section 22 threshold and apply it to every supplier.
Fix: Section 24 overrides the threshold for listed categories. A casual or non-resident taxable person must register before making taxable supplies, whatever the expected turnover.
Treating a person with no fixed place in the State as a non-resident taxable person
Both definitions say no fixed place of business, so they look alike.
Fix: Casual means no fixed place in that State or Union territory, so an Indian business can be casual. Non-resident means no fixed place of business or residence in India.
Saying every inter-State supplier must register without exception
The rule is learned as an absolute statement.
Fix: State the rule and note that notified relief exists. Inter-State suppliers of services below a notified limit are exempt from registration. An inter-State supplier of goods generally must register, though specific notified exemptions exist for certain persons, such as handicraft suppliers. Verify the facts against such exemptions before concluding.
Saying every person liable to pay tax under reverse charge must register, with no exception
Students learn Section 24 as a list of absolute rules and skip the notifications.
Fix: State that a person liable under reverse charge falls in Section 24, but a notified exemption can apply to some recipients, for example a person who is only a recipient of reverse charge supplies. Check the facts against it before concluding.
Forgetting the advance deposit and the 5-day rule for casual and non-resident taxable persons
Students stop once they identify the category.
Fix: Add the special procedure: apply at least 5 days before commencement, hold the registration before starting business, deposit the estimated tax liability, and note the 90-day validity under section 27.
Allowing composition for a casual or non-resident taxable person
Students think composition is available to any small supplier.
Fix: Composition under section 10 is not available to these persons. Write this as a separate point in the answer.
Treating every e-commerce operator, or every supplier through an operator, as compulsorily registered
Students see the words e-commerce and apply Section 24 without checking the section 52 condition.
Fix: The section 52 condition applies to both categories. An operator is covered only if it is required to collect tax at source under section 52. A supplier through an operator is covered only if the operator is required to collect tax at source under section 52, for supplies other than those under section 9(5), and subject to notified relief for certain suppliers. Check these before concluding.

Worked examples

Example 1

Ravi runs a small trading business in Jaipur and is not registered. His aggregate turnover from goods this year is ₹30 lakh. He starts selling taxable goods to a buyer in Gujarat. Nothing in the facts suggests he is a handicraft supplier or falls in any other specially notified class. Must he register?

Show the solution

Ravi's turnover of ₹30 lakh is below the usual goods threshold, so under the turnover test alone he would not need to register.
However, the supply to Gujarat is an inter-State taxable supply of goods. Making inter-State taxable supplies is a category in Section 24.
For listed categories, registration is compulsory irrespective of turnover.
The notified relief for inter-State suppliers of services below the limit does not apply, as Ravi supplies goods. Inter-State supply of goods generally requires registration. Specific notified exemptions exist for certain persons, such as handicraft suppliers, but the facts show none applies to Ravi.

Answer: Yes. On the facts given, Ravi must obtain registration before making the inter-State taxable supply of goods, because Section 24 applies irrespective of turnover. In practice, verify that no specific notified exemption covers him.

Example 2

A Sri Lankan company, with no office or residence in India, plans to run a 20-day exhibition stall in Mumbai and sell taxable goods there. It has not yet applied for registration. Advise on its registration requirements.

Show the solution

The company has no fixed place of business or residence in India and supplies occasionally. It is a non-resident taxable person.
Section 24 makes registration compulsory for such a person, irrespective of turnover.
It must apply at least 5 days before it starts business in India. The application is made through an authorised signatory who is resident in India and holds a PAN. The company itself may use its PAN or another prescribed document, such as a tax identification number issued in Sri Lanka.
It must deposit the estimated tax liability for the period of registration in the electronic cash ledger when it applies.
Registration is valid for the period in the application or 90 days from the effective date, whichever is earlier. The 20-day stall fits within this. If the period needs to be extended, the proper officer can extend it by up to 90 days on application before expiry.
The company cannot opt for the composition levy.

Answer: The company is a non-resident taxable person and must register compulsorily, applying at least 5 days before the stall opens through an Indian-resident authorised signatory with a PAN, and depositing the estimated tax in advance. Registration is valid for the shorter of the period applied for and 90 days, and composition is not available.

Exam tips

In case-scenario MCQs, the turnover figure is often a distractor. Look for the category first.
When asked to distinguish casual from non-resident taxable persons, give the fixed-place test, the State versus India level, and the shared rules: 5 days, 90 days, deposit and no composition.
For long answers, list the Section 24 categories briefly and develop only the ones the case involves.
Always mention notified relief where it applies, such as small inter-State service suppliers, but only the relief you are sure of.
For e-commerce cases, treat the operator and the supplier separately. The operator is covered if it is required to collect tax at source under section 52. For the supplier, check that the operator is required to collect tax at source, then check section 9(5) and notified relief before saying it must register.
Write answers in provision, facts, conclusion form so that the examiner can allot marks for each step.

Practice questions from Registration

Compulsory Registration and Special Cases: frequently asked questions

Who must register under GST irrespective of turnover?

Persons in the categories listed in Section 24 of the CGST Act. These include inter-State suppliers, casual taxable persons, non-resident taxable persons, reverse charge payers, TDS deductors, agents, input service distributors, e-commerce operators required to collect tax at source under section 52, suppliers through such operators (other than for supplies under section 9(5)) where relief is not notified, and OIDAR suppliers from outside India. Notified relief can apply in some cases.

What is the difference between a casual taxable person and a non-resident taxable person?

A casual taxable person occasionally supplies in a State or Union territory where he has no fixed place of business. A non-resident taxable person occasionally supplies in India but has no fixed place of business or residence in India. Both must register before starting business, deposit estimated tax, and cannot opt for composition.

For how long is the registration of a casual or non-resident taxable person valid?

It is valid for the period stated in the application or 90 days from the effective date, whichever is earlier. The proper officer can extend it by up to 90 days on application before it expires.

Does an e-commerce operator have to register under GST?

Section 24 covers an e-commerce operator that is required to collect tax at source under section 52, irrespective of turnover. The same section 52 condition also applies to the supplier category: a person supplying through an operator is covered only if the operator is required to collect tax, for supplies other than those under section 9(5). Notified relief is available for certain suppliers, so check for it.