What is Section 22 under Cgst Act ?

Section 22 – Persons Liable for Registration (CGST Act, 2017)
🔹 1. Meaning of Section 22
Section 22 of the Central Goods and Services Tax Act, 2017 deals with mandatory registration under GST based on turnover.
It specifies who is required to register under GST when their business crosses a certain turnover limit.
🔹 2. Basic Provision
Every supplier shall be liable to be registered under GST if:
👉 He makes taxable supply of goods or services, and
👉 His aggregate turnover exceeds the prescribed threshold limit
🔹 3. Threshold Limit for Registration
📊 Normal Category States:
Goods → ₹40 lakh
Services → ₹20 lakh
📊 Special Category States:
Goods → ₹20 lakh
Services → ₹10 lakh
👉 Special category states include: Arunachal Pradesh, Manipur, Mizoram, Nagaland, etc.
🔹 4. Meaning of Aggregate Turnover
Aggregate turnover includes:
✔ Taxable supplies
✔ Exempt supplies
✔ Export of goods/services
✔ Inter-state supplies
❌ Excludes:
GST (CGST, SGST, IGST)
Inward supplies under reverse charge
👉 It is calculated on PAN basis (all India level)
🔹 5. Important Conditions
✔ PAN-based Registration
Registration is required state-wise
But turnover is calculated PAN-wise
✔ Includes All Businesses
Proprietor
Partnership
Company
LLP
🔹 6. Voluntary Registration (Section 22(3))
Even if turnover is below limit:
👉 A person can take voluntary registration
Once registered:
All GST provisions will apply
Must file returns regularly
🔹 7. Exception to Section 22
Section 22 does NOT apply to persons covered under:
👉 Section 24 (Compulsory Registration), such as:
Inter-state suppliers
E-commerce sellers
Casual taxable persons
🔹 8. Amendment & Updates
Government can:
Increase or decrease threshold limits
Notify special conditions for certain states or businesses
🔹 9. Practical Example
🧾 Example 1:
A trader in Delhi:
Turnover = ₹45 lakh
👉 Must register (exceeds ₹40 lakh limit)
🧾 Example 2:
A service provider:
Turnover = ₹18 lakh
👉 Not required to register (below ₹20 lakh)
🧾 Example 3:
Business operating in multiple states:
Total turnover = ₹50 lakh
👉 Must register in each state separately
🔹 10. Key Points Summary
✔ Registration based on turnover limit
✔ Limit differs for goods & services
✔ Calculated on aggregate turnover (PAN basis)
✔ State-wise registration required
✔ Voluntary registration allowed
✔ Section 24 overrides in some cases
📊 Quick Chart (for revision)
Particular
Limit (Normal States)
Limit (Special States)
Goods
₹40 lakh
₹20 lakh
Services
₹20 lakh
₹10 lakh
🧠 Conclusion
Section 22 is the basic rule for GST registration. It ensures that only businesses above a certain size are required to register, reducing compliance burden for small taxpayers.

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