Tax Laws and Practice · Procedural Compliance under GST

Registration under GST for CS Executive Students

Updated 11 October 2026 · Fact-checked

Registration under GST means a supplier is enrolled with the tax authorities and gets a GSTIN. Under section 22, a supplier must register in a State if aggregate turnover in a financial year exceeds ₹20 lakh (₹10 lakh for special category States). To answer, state the provision, apply the facts, and conclude.

Understand Registration under GST

GST registration is the entry point to the tax. A person who is registered can collect tax, claim input tax credit and file returns. A person who is liable but does not register breaks the law, so questions often test who must register and from when.

The basic rule is in section 22(1). A supplier is liable to register in the State or Union territory from where he makes a taxable supply if his aggregate turnover in a financial year exceeds ₹20 lakh. For a supplier making taxable supplies from a special category State, the limit is ₹10 lakh. The Act also lets the Government, on the Council's recommendation and at the request of the State concerned, raise the limit. For special category States the ₹10 lakh limit can go up to ₹20 lakh. The ₹20 lakh limit can go up to ₹40 lakh only for suppliers engaged exclusively in the supply of goods. These raised limits apply only as notified, with conditions.

Aggregate turnover is wide. The Explanation to section 22 says it includes all supplies made by the taxable person, on his own account or on behalf of all his principals. Goods supplied by a registered job worker after job work are treated as the principal's supply under section 143, and their value is not counted in the job worker's aggregate turnover. A person is treated as exclusively in goods even if he also makes exempt supplies of services by way of interest or discount on deposits, loans or advances.

Threshold is not the only trigger. Under section 22(3), when a business of a registered taxable person is transferred as a going concern, by succession or otherwise, the transferee or successor is liable to register from the date of transfer or succession. Under section 22(4), in an amalgamation or demerger of companies under a High Court or Tribunal order, the transferee is liable to register from the date the Registrar of Companies issues the certificate of incorporation giving effect to the order. Section 24 lists persons who must register whatever their turnover, and section 25(3) allows voluntary registration. Check these in your study material.

Registration can end. Section 29 deals with cancellation and suspension, and section 30 with revocation of cancellation. Learn who can start the process, the grounds, and the consequences.

Key rules to remember

General threshold, section 22(1): Register if aggregate turnover in a financial year > ₹20,00,000; Applies to suppliers in States other than special category States. The test is 'exceeds', so turnover of exactly ₹20 lakh does not trigger registration.
Special category State threshold: Register if aggregate turnover in a financial year > ₹10,00,000; First proviso to section 22(1). The Explanation defines special category States as those in article 279A(4)(g) of the Constitution, except the State of Jammu and Kashmir and the States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. The Government may enhance the ₹10 lakh limit up to ₹20 lakh only at the request of a special category State and on the Council's recommendation, on notified conditions and limitations.
Goods-only suppliers: Limit may be enhanced from ₹20 lakh to a notified amount not exceeding ₹40 lakh; Only if the State requests, the Council recommends and the supplier is exclusively in goods. It operates through notification, with conditions.
Aggregate turnover: All supplies by the person, on own account and on behalf of all principals; Explanation (i) to section 22. A registered job worker's post-job-work supply of goods is excluded (Explanation (ii)).
Transfer of business, section 22(3): Transferee liable to register from date of transfer or succession; Applies where a registered taxable person's business is transferred as a going concern.
Amalgamation or demerger, section 22(4): Transferee liable from the date the Registrar of Companies issues the certificate of incorporation; Applies to a scheme sanctioned by a High Court or Tribunal.
Cancellation by officer, section 29(2): Grounds: contravention of prescribed provisions; composition person not filing annual return beyond three months of due date; non-filing of returns for prescribed continuous period; voluntary registrant not commencing business within six months; fraud, wilful misstatement or suppression; The officer may cancel from any date, including a retrospective date, but only after giving an opportunity of being heard.
Effect of cancellation: Pay higher of ITC on stock and capital goods, or output tax on those goods; Section 29(5), paid by debit in the electronic credit or cash ledger, calculated as prescribed. For capital goods, the ITC is reduced by prescribed percentage points, or tax on transaction value under section 15, whichever is higher. Section 29(3): past liabilities continue.

How to solve Registration under GST questions

Use the same structure for any registration question: provision, facts, conclusion.

1Identify what is asked: liability to register, threshold, transfer of business, or cancellation or revocation.
2Name the section: section 22 for liability, 29 for cancellation, 30 for revocation. Mention section 24 or 25 only where you are sure of the rule.
3Decide the location and type of supplier: special category State or not, goods only or including services.
4Compute aggregate turnover on the facts, including supplies made for principals, and exclude what the Explanation excludes.
5Compare turnover with the limit. Remember the test is 'exceeds'.
6For transfers or mergers, find the correct date of liability under section 22(3) or 22(4).
7For cancellation, check who acts (officer or registered person), the ground, the hearing requirement and the dues and stock payment.
8Write a clear conclusion in one sentence, citing the section.

Quickest way: Four-question check for registration

When to use it: Use for short problems when time is limited.

Where is the supplier located: special category State or not?
What is the aggregate turnover for the financial year, after the Explanation adjustments?
Does it exceed the limit, or does a transfer, merger or other special rule apply?
Write: section, limit, turnover, conclusion with the date of liability.

Common mistakes in Registration under GST

Registering at exactly ₹20 lakh turnover
Students read the limit as 'up to and including'.
Fix: Section 22 says 'exceeds'. Turnover must be more than the limit.
Counting only own supplies in aggregate turnover
Students forget the principal-agent rule.
Fix: Include supplies made on behalf of all principals, as the Explanation states.
Including a job worker's post-job-work supply in the job worker's turnover
The goods leave the job worker's premises, so it looks like his sale.
Fix: Under Explanation (ii), such supply is treated as the principal's, and its value is excluded from the job worker's aggregate turnover.
Giving the wrong date of liability on a merger
Students use the date of the court order or the transfer.
Fix: Under section 22(4) it is the date the Registrar of Companies issues the certificate of incorporation giving effect to the order.
Saying cancellation wipes out past tax dues
Students think cancellation ends the person's GST obligations.
Fix: Section 29(3): liability for any period before cancellation continues, whether determined before or after cancellation.
Assuming the officer may cancel without hearing
Students overlook the proviso to section 29(2).
Fix: The officer cannot cancel under section 29(2) without giving the person an opportunity of being heard.

Worked examples

Example 1

Rohan, a trader in Pune (not a special category State), supplies only taxable goods. His aggregate turnover in the financial year is ₹19,50,000. Later the next year his turnover becomes ₹21,00,000. Is he liable to register? Assume no raised limit has been notified and no other rule applies.

Show the solution

Provision: section 22(1) makes a supplier liable to register if aggregate turnover in a financial year exceeds ₹20 lakh, in a State other than a special category State.
Year 1: ₹19,50,000 does not exceed ₹20,00,000.
Year 2: ₹21,00,000 exceeds ₹20,00,000.
Conclusion by year.

Answer: In the first year Rohan is not liable to register. In the second year his turnover exceeds ₹20 lakh, so he is liable to register under section 22(1).

Example 2

A registered person, Mehta Traders, has its registration cancelled by the proper officer, on his own motion, under section 29 on a ground that the officer relied on without notice. Separately, it has unpaid GST for an earlier period. Explain the validity of the cancellation and the effect on the dues, and state what remedy it has.

Show the solution

Provision: section 29(2) lets the proper officer cancel registration on listed grounds, from such date as he thinks fit, but the proviso says it cannot be done without giving the person an opportunity of being heard.
Facts: the officer cancelled on his own motion, without notice or hearing.
Dues: section 29(3) says cancellation does not affect liability to pay tax and other dues for any period before cancellation, whether determined before or after it.
Remedy: section 30(1) allows a registered person whose registration was cancelled by the proper officer on his own motion to apply for revocation, in the manner, within the time and subject to the conditions prescribed. Since the cancellation here was on the officer's own motion, the remedy is available. Under section 30(2) the officer may revoke or reject, and rejection needs a hearing.
Conclusion.

Answer: The cancellation without a hearing contravenes the proviso to section 29(2) and is open to challenge. Even if cancellation stands, Mehta Traders must still pay the earlier dues under section 29(3). Because the officer cancelled on his own motion, it may apply for revocation under section 30, within the time prescribed.

Exam tips

Quote the section number and the word 'exceeds' in every threshold answer.
Learn the section 22(3) and 22(4) dates separately; examiners like to test them side by side.
For cancellation answers, give both sides: grounds under section 29(1) and 29(2), then the consequences in 29(3) and 29(5).
Mention the hearing requirement every time cancellation or rejection of revocation is discussed.
Where the question needs prescribed time limits or forms, say 'as prescribed' unless you are sure of the rule.

Practice questions from Procedural Compliance under GST

Registration under GST in other exams

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

Registration under GST: frequently asked questions

What is the GST registration threshold limit for goods and services?

Under section 22(1), a supplier is liable to register if aggregate turnover in a financial year exceeds ₹20 lakh, or ₹10 lakh for supplies from special category States. The ₹10 lakh limit may be raised up to ₹20 lakh for special category States, and the ₹20 lakh limit up to ₹40 lakh only for suppliers exclusively in goods, in each case as notified on the State's request and the Council's recommendation.

Who is liable to register under section 22?

Suppliers whose aggregate turnover exceeds the limit, persons who take over a registered business as a going concern, and transferee companies in an amalgamation or demerger. Section 24 adds categories that must register irrespective of turnover.

Who can cancel GST registration?

The proper officer can cancel on his own motion or on the application of the registered person or his legal heirs, in case of death. The grounds are in section 29(1) and (2).

Can cancelled registration be restored?

Yes. Under section 30, a person whose registration was cancelled by the officer on his own motion may apply for revocation, in the manner and time prescribed. The officer must give a hearing before rejecting.

Does cancellation end my GST liability?

No. Section 29(3) says liability for tax and dues before the cancellation date continues. You must also pay an amount on stock and capital goods under section 29(5).