Taxation · Registration

Compulsory Registration in Certain Cases under GST Section 24

Updated 4 October 2026 · Fact-checked

Under Section 24 of the CGST Act, certain persons must register whatever their turnover. They include casual and non-resident taxable persons, reverse charge recipients, TDS deductors and e-commerce operators. Inter-State suppliers are no longer on the list, since Section 24(i) was omitted from 1 October 2023. They follow the Section 22 threshold unless another Section 24 trigger applies.

Understand Compulsory Registration in Certain Cases

Section 22 gives a threshold limit. A supplier whose aggregate turnover stays below it need not register. Section 24 is the opposite rule. It lists persons who must register even with zero or tiny turnover, because the law cannot track them or collect tax from them without registration.

The reasons are simple. A visitor setting up a temporary stall, a foreign supplier, or a person who pays tax on behalf of someone else all create tax flows that need a registration number. Without one, the credit chain breaks and the department cannot monitor them.

The main categories in Section 24 are: casual taxable persons, persons liable to pay tax under reverse charge, non-resident taxable persons, persons required to deduct tax at source (Section 51), persons who supply goods or services on behalf of other taxable persons as an agent, input service distributors, e-commerce operators who must collect tax at source (Section 52), persons supplying goods or services through an e-commerce operator who collects tax, suppliers of online information and database access or retrieval services (OIDAR) from a place outside India to a person in India other than a registered person, and any other class the Government notifies.

Suppliers of OIDAR services from outside India to a person in India, other than a registered person, are in the Section 24 list. They register under the simplified registration procedure of Section 14 of the IGST Act, 2017.

The exam twist is a change in law. Earlier, Section 24(i) made every inter-State taxable supplier register whatever the turnover. Section 24(i) was omitted by the Finance Act, 2023, with effect from 1 October 2023. Inter-State supply alone is no longer a reason to register. An inter-State supplier of goods or services is now governed by Section 22 and the thresholds notified under it: ₹40 lakh for goods (₹20 lakh in special category States, subject to the notified list of States), and ₹20 lakh for services (₹10 lakh in special category States, subject to the notified list of States).

The exact limit for a State comes from Section 22 read with the Government's notifications. So check the State named in the question and do not assume one limit for every special category State.

The threshold relief holds only if the person is not caught by another Section 24 trigger, such as reverse charge liability or supply through an e-commerce operator that collects tax. Always read the facts for those other triggers. Do not apply the old rule that an inter-State supplier must register at any turnover.

The core idea to carry: threshold is the default, Section 24 overrides it for the listed persons, and inter-State supply by itself no longer puts a person on that list. Your answer should name the category, apply the rule, and then test for the threshold.

Key rules to remember

Default rule (Section 22): Register if aggregate turnover > threshold limit; Services-only suppliers: ₹20 lakh (₹10 lakh in special category States, subject to the notified list of States). Goods suppliers: ₹40 lakh in most States (₹20 lakh in special category States, subject to the notified list). Lower thresholds apply in some States. This default does not help persons caught by Section 24.
Override rule (Section 24): Listed person → registration compulsory, irrespective of turnover; Applies even if turnover is nil or below the threshold. Always check the category first. Inter-State supplier is no longer a listed category.
Inter-State supply of goods: Inter-State taxable supply of goods + aggregate turnover ≤ goods threshold + no other Section 24 trigger → registration not required; Section 24(i) was omitted from 1 October 2023, so Section 22 and the notified goods threshold apply: ₹40 lakh, or ₹20 lakh in special category States (subject to the notified list). Above the threshold, or if another Section 24 trigger applies, registration is compulsory.
Inter-State supply of services: Inter-State taxable services + aggregate turnover ≤ services threshold + no other Section 24 trigger → registration not required; Section 22 and the notified threshold govern this case: ₹20 lakh, or ₹10 lakh for special category States (subject to the notified list of States). Above that limit, or if another Section 24 trigger applies, registration is compulsory.
Casual and non-resident taxable persons: Apply at least 5 days before starting business; registration valid for the period in the application or 90 days, whichever is earlier; extendable by a further period not exceeding 90 days; An advance deposit of estimated tax liability is required. The extension is allowed by the proper officer on application made before the registration expires.
Reverse charge recipients: Person liable to pay tax under Section 9(3) or 9(4) → must register; Check whether a notification exempts the specific case before concluding.
Time limit for others: Apply within 30 days of becoming liable; The 30-day limit applies to ordinary persons liable under Section 22 or 24, not to casual or non-resident taxable persons.

How to solve Compulsory Registration in Certain Cases questions

Use this order for any question asking whether a person must register under GST.

1Read the facts and note who the person is: resident or non-resident, a regular or casual supplier, the type of supply, and the turnover.
2Check whether the person fits a Section 24 category: casual taxable person, non-resident taxable person, RCM payer, TDS deductor, ISD, agent supplying on behalf of other taxable persons, e-commerce operator, supplier through an e-commerce operator, or an OIDAR supplier from outside India supplying to a person in India other than a registered person. Inter-State supply alone is not a category, as Section 24(i) was omitted from 1 October 2023. An OIDAR supplier from abroad is on the Section 24 list and registers under the simplified procedure of Section 14 of the IGST Act, 2017.
3If the person fits a category, state that registration is compulsory irrespective of turnover.
4If no category fits, apply the Section 22 threshold. This includes a person making inter-State supplies. Ask: goods or services? For goods compare turnover with ₹40 lakh (₹20 lakh in special category States, subject to the notified list). For services compare it with ₹20 lakh (₹10 lakh in special category States, subject to the notified list of States).
5Confirm the State type (special category or not) and whether the State is in the notified list before comparing the threshold.
6State the timeline: 5 days before commencing business for casual and non-resident persons, 30 days for others.
7Conclude clearly: registration required or not, with the reason in one line.

Quickest way: Category-first elimination

When to use it: Use it for MCQs and for short written parts where marks go to the rule and the conclusion.

Spot the trigger words in the question: casual, non-resident, reverse charge, TDS, e-commerce, agent, ISD.
If a trigger word is present, the answer is almost always 'registration compulsory'. Drop options that mention only the threshold.
If the question only says inter-State supply, treat it as an ordinary Section 22 case. Drop any option that says registration is compulsory merely because the supply is inter-State. Then compare turnover with the goods or services threshold and check the State type.
In written answers, use three lines: Provision (Section 24 or Section 22), Facts (the person's details), Conclusion (register or not).

Common mistakes in Compulsory Registration in Certain Cases

Saying every inter-State supplier must register whatever the turnover.
The old Section 24(i) rule is remembered, but it was omitted from 1 October 2023.
Fix: Treat inter-State supply as a Section 22 case. Apply the threshold, then check for other Section 24 triggers.
Using the services limit for a goods supplier, or the goods limit for a services supplier.
Students remember ₹20 lakh and ₹40 lakh but not which supply each belongs to.
Fix: Goods: ₹40 lakh (₹20 lakh in special category States, subject to the notified list). Services: ₹20 lakh (₹10 lakh in special category States, subject to the notified list). Identify the supply first.
Applying the threshold to casual taxable persons or non-resident taxable persons.
Students treat the threshold as the universal first test.
Fix: Run the Section 24 list before the threshold. These persons must register whatever their turnover.
Giving the 30-day deadline for casual taxable persons.
The 30-day rule is the best-known timeline.
Fix: Casual and non-resident persons apply at least 5 days before commencing business.
Ignoring the special category State limit (₹10 lakh for services, ₹20 lakh for goods instead of the general limits).
Only the general figure is memorised.
Fix: Read which State the supplier is in, check whether it is in the notified list, and use the right limit.
Granting threshold relief to an inter-State supplier even when another Section 24 trigger applies, such as reverse charge liability or supply through an e-commerce operator.
The threshold is applied mechanically without testing the other triggers.
Fix: Check that the person is not otherwise liable under Section 24 before applying the threshold.
Writing a section number or notification number without being sure of it.
Students try to impress with details.
Fix: Quote Section 24 and the rule in words. Add a notification number only if you are certain.

Worked examples

Example 1

Meera, a consultant in Gujarat (not a special category State), provides only taxable services. Her aggregate turnover in the year is ₹15 lakh. Some of her clients are in Maharashtra, so she makes inter-State supplies of services. Is she liable to register?

Show the solution

Category check: she is not a casual or non-resident taxable person, and the facts show no other Section 24 trigger such as reverse charge liability or supply through an e-commerce operator. Inter-State supply alone is no longer a Section 24 category.
Section 22 applies. Type of supply: only services, so the services threshold applies.
Compare turnover with the threshold: Gujarat is not a special category State, so the limit is ₹20 lakh. Her turnover of ₹15 lakh is below it.
Conclusion: she need not register until her aggregate turnover exceeds the limit.

Answer: Meera is not liable to register, because her turnover of ₹15 lakh is within the ₹20 lakh services threshold and no other Section 24 trigger applies.

Example 2

Ravi, a trader of taxable goods in Uttar Pradesh (not a special category State), has aggregate turnover of ₹12 lakh. He sells goods worth ₹3 lakh to a buyer in Rajasthan. He is not a casual or non-resident taxable person, and no other Section 24 trigger applies to him. Is he required to register?

Show the solution

Category check: he makes an inter-State taxable supply of goods. Section 24(i) was omitted from 1 October 2023, so this alone does not make registration compulsory.
No other Section 24 category fits the facts: he is not casual or non-resident, and has no reverse charge, e-commerce or agent trigger.
Section 22 applies. Type of supply: goods, so the threshold is ₹40 lakh for a State that is not a special category State.
Compare turnover: ₹12 lakh is below ₹40 lakh.
Conclusion: he need not register.

Answer: Ravi need not register, because his turnover of ₹12 lakh is below the ₹40 lakh goods threshold and no other Section 24 trigger applies.

Exam tips

Start every answer with the Section 24 category, not the threshold. The examiner looks for the override logic.
For inter-State questions, do not say registration is compulsory just because the supply is inter-State. Section 24(i) is omitted from 1 October 2023. Apply the Section 22 threshold and test the other Section 24 triggers.
Learn the 5-day and 30-day timelines as a pair, and the 90-day validity for casual and non-resident persons.
In MCQs, check the State type and the nature of the supply (goods or services) before choosing, as options often differ only in the limit.
Do not quote notification numbers unless you are certain. State the rule in words and conclude.

Practice questions from Registration

Compulsory Registration in Certain Cases in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

CS ProfessionalRegistration Act, 1908: Compulsory and Optional Registration

Compulsory Registration in Certain Cases: frequently asked questions

Which persons must register under GST irrespective of turnover?

Section 24 lists them: casual and non-resident taxable persons, reverse charge payers, TDS deductors, ISDs, agents supplying on behalf of other taxable persons, e-commerce operators, suppliers through such operators, and OIDAR suppliers from outside India supplying to a person in India other than a registered person. The Government can add other classes by notification. Inter-State suppliers are no longer on the list, as Section 24(i) was omitted from 1 October 2023. OIDAR suppliers from abroad register under the simplified procedure of Section 14 of the IGST Act, 2017.

Is a small service provider making an inter-State supply exempt from registration?

Yes, if the aggregate turnover does not exceed the threshold for services and the person is not liable to register under any other Section 24 trigger. That limit is ₹20 lakh, or ₹10 lakh in special category States (subject to the notified list of States). Above it, registration is compulsory.

Must a person making an inter-State supply of goods register whatever the turnover?

No. Section 24(i), which required this, was omitted by the Finance Act, 2023 with effect from 1 October 2023. An inter-State supplier of goods is governed by Section 22 and the notified threshold of ₹40 lakh (₹20 lakh in special category States, subject to the notified list). Registration is still compulsory if another Section 24 trigger applies.

How long is the registration of a casual taxable person valid?

It is valid for the period stated in the application or 90 days, whichever is earlier. It can be extended by the proper officer for a further period not exceeding 90 days, on application made before it expires. An advance deposit of estimated tax is also required.