Section 24 of CGST Act, 2017 – Compulsory Registration

Updated on: February 2026 (as amended and applicable till date)
Prepared by: Yours Tax Consultant

1. Bare Act Text – Section 24

Section 24:
Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,—

(i) persons making any inter-State taxable supply;
(ii) casual taxable persons making taxable supply;
(iii) persons who are required to pay tax under reverse charge;
(iv) persons who are required to pay tax under sub-section (5) of section 9;
(v) non-resident taxable persons making taxable supply;
(vi) persons who are required to deduct tax under section 51;
(vii) persons who are required to collect tax under section 52;
(viii) persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
(ix) input service distributor, whether or not separately registered under this Act;
(x) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
(xi) every electronic commerce operator;
(xii) every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person;
(xiii) such other person or class of persons as may be notified by the Government on the recommendations of the Council.

2. Objective of Section 24

Section 24 overrides the threshold exemption under Section 22 and mandates GST registration irrespective of turnover for specified categories of persons.

Its purpose is to ensure tax compliance in sensitive and high-risk transactions.

3. Key Feature – “Notwithstanding Section 22”

The opening words of Section 24 are critical:

“Notwithstanding anything contained in sub-section (1) of section 22…”

This means:

Threshold limits of ₹20 lakh / ₹40 lakh do NOT apply
Even ₹1 of taxable supply can trigger registration

4. Inter-State Taxable Supply – Clause (i)

Persons making inter-State taxable supply are mandatorily required to register.

Important Relaxations (by Notification):

Inter-State supply of services up to threshold limit exempted
Handicraft goods suppliers subject to conditions

These exemptions are notification-based and must be strictly complied with.

5. Casual & Non-Resident Taxable Persons – Clauses (ii) & (v)

Casual Taxable Person:
A person occasionally undertaking taxable supply in a State where he has no fixed place of business.

Non-Resident Taxable Person:
A person supplying goods or services from outside India without fixed place of business in India.

Both are required to:

Take compulsory registration
Pay advance tax

6. Reverse Charge & Section 9(5) Supplies – Clauses (iii) & (iv)

Persons liable to pay tax under:

Reverse Charge Mechanism (RCM)
Specified supplies under Section 9(5)

are required to take registration, even if they make no outward taxable supplies.

7. TDS, TCS & ISD – Clauses (vi), (vii) & (ix)

Mandatory registration applies to:

TDS deductors under Section 51
TCS collectors under Section 52
Input Service Distributors (ISD)

Such registrations are compliance-driven, not turnover-based.

8. Agents & E-Commerce Suppliers – Clauses (viii), (x) & (xi)

Registration is compulsory for:

Agents making supply on behalf of others
Suppliers through e-commerce operators
E-commerce operators themselves

Certain service providers have been exempted subject to threshold and conditions.

9. OIDAR Services – Clause (xii)

Persons supplying Online Information and Database Access or Retrieval (OIDAR) services from outside India to unregistered persons in India must obtain compulsory GST registration.

This ensures taxation of digital economy.

10. Section 24 Read with Relevant CGST Rules

11. Common Practical Mistakes

Ignoring compulsory registration due to low turnover
Assuming Section 23 exemption applies
Missing notification-based relaxations
Late registration leading to retrospective tax liability

12. Related Provisions

13. Professional Tip

Before advising that registration is not required, always cross-check Section 24. Most GST disputes on registration arise because compulsory clauses are overlooked.

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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Section 24 – Compulsory Registration