Compulsory GST (Goods and Services Tax) Registration

In India, obtaining GST (Goods and Services Tax) registration is compulsory under certain circumstances.

GST registration is mandatory in the following situations:

1. Threshold Turnover: If your aggregate turnover of taxable supplies (i.e., sales) exceeds the threshold limit, which varies based on the type of business:
   1. For most states (except special category states), the threshold limit is Rs. 40 lakhs for goods suppliers (Rs. 20 lakhs for services suppliers).
   1. For businesses operating in special category states (Northeastern states and hilly states), the threshold limit is Rs. 20 lakhs for both goods and services suppliers.
2. Inter-State Supply: GST registration is mandatory regardless of turnover if you are involved in inter-state supply of goods or services.
3. Casual Taxable Person: If you are supplying goods or services occasionally or temporarily, without having a fixed place of business.
4. Non-Resident Taxable Person: Non-resident persons who supply goods or services in India but do not have a fixed place of business in India.
5. Reverse Charge Mechanism: If you are liable to pay tax under the reverse charge mechanism.
6. E-commerce Operator or Aggregator: If you are an e-commerce operator or aggregator, irrespective of turnover.
7. Input Service Distributor: If you are distributing input tax credit (ITC) among your branches.
8. Certain Specific Businesses: Such as agents supplying goods/services on behalf of others, Input Service Distributors, and others as notified.

It’s important to note that GST registration must typically be obtained within 30 days from the date when your business becomes liable to register. Failure to register under these circumstances can lead to penalties under GST law.

Here are a few key points and cases related to GST registration and its applicability:

1. Mandatory Registration on Crossing Threshold: The GST law mandates registration when a business crosses the threshold turnover limit. This has been consistently upheld in various rulings where businesses were found liable for registration once their turnover exceeded the prescribed limits.
2. Inter-State Supply: In the case of Sunny Transports v. State of Rajasthan, the Rajasthan High Court held that registration is mandatory for businesses engaged in inter-state supply, regardless of turnover, as per Section 24 of the CGST Act, 2017.
3. E-commerce Operators: In Flipkart India Private Limited v. Assistant Commissioner of State Tax, the Karnataka High Court upheld that e-commerce operators are required to register under GST, even if they act as intermediaries and the actual sellers may be small-scale businesses below the turnover threshold.
4. Casual Taxable Person and Non-Resident Taxable Person: The requirement for registration as a casual taxable person or non-resident taxable person has been clarified in various rulings, emphasizing that registration is mandatory for such persons before commencing business activities in India.
5. Input Service Distributor: The concept of Input Service Distributor (ISD) under GST has also been elaborated upon in rulings, affirming that ISDs must register under GST to distribute input tax credit (ITC) among their branches.

These cases illustrate the application and interpretation of GST registration requirements in specific contexts. It’s essential to note that case laws can evolve, and new rulings may provide further guidance on GST registration obligations. For precise legal advice or updates on specific cases, consulting with a qualified tax professional or legal expert familiar with GST laws and recent judicial decisions would be advisable.