Section 22 – Persons liable for registration.
Section 22 of CGST Act, 2017 – Persons Liable for Registration
Updated on: February 2026 (as amended and applicable till date)
Prepared by: Yours Tax Consultant
1. Bare Act Text – Section 22
Section 22(1):
Every supplier shall be liable to be registered under this Act
in the State or Union territory, other than special category States,
from where he makes a taxable supply of goods or services or both,
if his aggregate turnover in a financial year exceeds
twenty lakh rupees.
In the case of special category States, the threshold shall be ten lakh rupees.
Section 22(2):
Every person who, on the day immediately preceding the appointed day,
is registered or holds a licence under an existing law,
shall be liable to be registered under this Act.
Section 22(3):
Where a business carried on by a taxable person registered under this Act
is transferred, whether on account of succession or otherwise,
to another person as a going concern,
the transferee or successor shall be liable to be registered
with effect from the date of such transfer or succession.
Section 22(4):
Where two or more taxable persons are engaged in business
at the same place,
or in different places,
under the same PAN,
they may be granted a separate registration
for each such place of business,
subject to prescribed conditions.
2. Objective of Section 22
Section 22 identifies who is mandatorily required to take GST registration based on turnover, legacy registrations, and business transfer.
It establishes the basic threshold principle under GST law.
3. Threshold Limit for Registration (Current Position)
As applicable till date:
- ₹20 lakh – Normal category States
- ₹10 lakh – Special category States
For suppliers of goods only, higher threshold of ₹40 lakh is available subject to conditions and State notification.
Threshold limits do not apply where compulsory registration under Section 24 is attracted.
4. Meaning of Aggregate Turnover
Aggregate turnover includes:
- Taxable supplies
- Exempt supplies
- Exports of goods or services
- Inter-State supplies
It excludes:
- GST charged (CGST, SGST, IGST, Cess)
PAN-based turnover is considered on all-India basis.
5. Liability of Existing Registrants – Section 22(2)
Persons registered under:
- VAT
- Service Tax
- Excise
immediately before GST implementation were mandatorily required to migrate to GST, irrespective of turnover.
6. Registration on Transfer of Business – Section 22(3)
When a business is transferred:
- By sale
- By inheritance
- By merger or demerger
The transferee is liable to take registration from the date of transfer, not from the date of application.
7. Multiple Registrations under Same PAN – Section 22(4)
A person having:
- Multiple places of business in one State, or
- Places of business in different States
may obtain separate GST registrations, subject to compliance with prescribed conditions.
8. Section 22 Read with Relevant CGST Rules
- Rule 8 – Application for registration
- Rule 9 – Verification and approval
- Rule 10 – Issue of registration certificate
9. Common Practical Issues
- Wrong calculation of aggregate turnover
- Delay in taking registration after crossing threshold
- Ignoring inter-State supply while computing turnover
- Incorrect assumption of ₹40 lakh threshold
10. Related Provisions
- Section 23 – Persons not liable for registration
- Section 24 – Compulsory registration
- Section 25 – Procedure for registration
11. Professional Tip
Always monitor PAN-based aggregate turnover on a monthly basis. Delay in registration under Section 22 can lead to tax demand, interest and penalty.
Disclaimer: This article is prepared based on the CGST Act, CGST Rules, notifications and prevailing legal position as applicable till date. Future amendments or judicial pronouncements may require revision.
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