Text
The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.[1] The Act as published in the Gazette of India is the legal source.
Section 22, verbatim (show)
* Section 22. Persons liable for registration.-
(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:
Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees:
1[Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified:]
2[Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified:
Explanation.-For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount.]
(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 with effect from the appointed day.
(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 the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.
(4) Notwithstanding anything contained in sub-sections (1) and (3), in a case of transfer pursuant to sanction of a scheme or an arrangement for amalgamation or, as the case may be, demerger of two or more companies pursuant to an order of a High Court, Tribunal or otherwise, the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.
Explanation.-For the purposes of this section,-
(i) the expression "aggregate turnover" shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;
(ii) the supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker;
(iii) the expression "special category States" shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution 3[except the State of Jammu and Kashmir] 4[and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.]
* Enforced w.e.f. 22nd June, 2017.
1. Inserted by s.11 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
2. Inserted by s. 94 of The Finance (No. 2) Act, 2019 (No. 23 of 2019) - Brought into force w.e.f. 01st January, 2020 vide Notification No. 1/2020- C.T. dated 1st January, 2020.
3. Inserted by s. 2 of The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017 (No. 26 of 2017) (Corrigendum for this provision issued vide Indian Institutes of Management Act, 2017 dated 31st December, 2017 (No. 33 of 2017)) - Brought into force w.e.f. 8th July, 2017
4. Inserted by s. 11 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018) - Brought into force w.e.f. 01st February, 2019.
Sub-section (1)
22(1)Ordinary turnover threshold
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 rupeesSection 22(1)
The supplier must make taxable supplies from the State or Union territory concerned. Section 24 overrides this turnover rule, while section 23 supplies registration exclusions. The first proviso replaces the ordinary threshold for special-category States.
Questions to answer on the file8 questions
22(1), first provisoSpecial-category threshold
he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupeesSection 22(1), first proviso
The supplier must make taxable supplies from a special-category State. The second proviso permits a notified enhancement, and Explanation (iii) defines the relevant States.
22(1), second provisoSpecial-category enhancement
the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupeesSection 22(1), second proviso
The State must request the enhancement, and the Council must recommend it. The notification sets the amount within the ceiling and any conditions or limitations.
22(1), third proviso and ExplanationGoods-only enhancement
the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupeesSection 22(1), third proviso and Explanation
The enhancement concerns suppliers exclusively supplying goods and remains subject to notified conditions and limitations. Exempt deposit, loan or advance services whose consideration is interest or discount do not prevent the stated goods-only treatment. The State-request and Council-recommendation requirements apply.
Questions to answer on the file6 questions
22(2)Existing-law registration or licence
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 with effect from the appointed day.Section 22(2)
The preceding day fixes whether the person holds the existing registration or licence. Registration under this Act then starts from the appointed day.
Questions to answer on the file4 questions
22(3)Going-concern transfer
the transferee or the successor, as the case may be, shall be liable to be registered with effect from the date of such transfer or succession.Section 22(3)
The transferred business must have been carried on by a taxable person registered under this Act and pass as a going concern. Sub-section (4) overrides this transfer-date rule for its specified company schemes.
Questions to answer on the file5 questions
22(4)Amalgamation and demerger
the transferee shall be liable to be registered, with effect from the date on which the Registrar of Companies issues a certificate of incorporation giving effect to such order of the High Court or Tribunal.Section 22(4)
For the specified sanctioned scheme or arrangement involving two or more companies, sub-section (4) overrides both the turnover rule and ordinary transfer-date rule. The starting date is when the Registrar of Companies issues the incorporation certificate giving effect to the High Court or Tribunal order.
Questions to answer on the file5 questions
22, Explanation (i) to (iii)Turnover and special-category meaning
the expression "aggregate turnover" shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principalsSection 22, Explanation (i) to (iii)
Completed job-work goods supplied by a registered job worker are treated as the principal's supply under section 143 and excluded from the job worker's turnover. Special-category States follow article 279A(4)(g), excluding Jammu and Kashmir, Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand. Own-account supplies and supplies on behalf of all principals enter the turnover inclusion.
Other questions to answer on the file
Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.
Scope the section as a whole
Questions to answer on the file1 question
What the Explanation to the section adds Explanation (i), (ii) and (iii)
Questions to answer on the file5 questions
Frequently asked questions
Is forty lakh rupees an automatic threshold for every goods supplier?
No. The Government may notify an enhancement on the State's request and the Council's recommendations, subject to conditions and limitations. Forty lakh rupees is the statutory ceiling for that enhancement.
Section 22(1), third proviso
Do the specified exempt interest services defeat goods-only status?
No. The Explanation preserves goods-only status for exempt deposit, loan or advance services whose consideration is interest or discount.
Section 22(1), Explanation
What proves transfer as a going concern?
The law does not settle the meaning of "as a going concern" or what evidences it. Sub-section (3) uses that condition to attach registration to the transfer or succession date.
Section 22(3)
Which date governs a qualifying amalgamation or demerger?
The Registrar of Companies incorporation-certificate date governs under sub-section (4). That rule overrides both sub-sections (1) and (3).
Section 22(4)
Amendment history
The CBIC text carries 4 footnotes. The table gives each in the source's own terms. Effective dates are as the footnotes state them.[1]
| Note | Change | Instrument | Effective from | Retrospective? |
|---|---|---|---|---|
| 1 | inserted the second proviso to sub-section (1), letting the Government enhance the ten lakh rupees threshold for a special category State | s.11 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)[2] | 01.02.2019 | no |
| 2 | inserted the third proviso to sub-section (1) and its Explanation, letting the Government enhance the twenty lakh rupees threshold to not more than forty lakh rupees for a supplier of goods only | s.94 of The Finance (No. 2) Act, 2019 (No. 23 of 2019), vide Notification No. 1/2020-C.T. dated 1st January, 2020[3][4] | 01.01.2020 | no |
| 3 | inserted "except the State of Jammu and Kashmir" in Explanation (iii) | s.2 of The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017 (No. 26 of 2017)[5] | 08.07.2017 | no |
| 4 | inserted "and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand." in Explanation (iii) | s.11 of The Central Goods and Services Tax (Amendment) Act, 2018 (No. 31 of 2018)[2] | 01.02.2019 | no |
Relationship with other provisions
| Provision | Connection | Words that tie them |
|---|---|---|
| Section 2 | this provision defined by Section 2 clause (6) | 22(1) "his aggregate turnover in a financial year" |
| Section 2 | this provision defined by Section 2 clause (10) | 22(2) "the day immediately preceding the appointed day" |
| Section 2 | this provision defined by Section 2 clause (48) | 22(2) "holds a licence under an existing law" |
| Section 143 | Explanation (ii) requires Section 143 | "the supply of goods by the principal referred to in section 143" |
| Section 24 | this provision overridden by Section 24 | s.24 "Notwithstanding anything contained in sub-section (1) of section 22" |
| Section 23 | this provision exception in Section 23 | s.23(1) "The following persons shall not be liable to registration" |
Circulars and notifications
Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.
Circulars (7)
| Number | Date | Subject |
|---|---|---|
| Circular No. 172/04/2022-GST | 6 July 2022 | Clarification on various issue pertaining to GST |
| Circular No. 106/25/2019-GST | 29 June 2019 | Refund of taxes paid on inward supply of indigenous goods by retail outlets established at departure area of the international airport beyond immigration counters when supplied to outgoing international tourist against foreign exchange - reg. withdrawn by a later instrument |
| Circular No. 96/15/2019-GST | 28 March 2019 | Seeks to clarify issues in respect of transfer of input tax credit in case of death of sole proprietor. |
| Circular No. 88/07/2019-GST | 1 February 2019 | Seeks to make amendments in the earlier issued circulars in wake of amendments in the CGST Act, 2017 (which shall come into force w.e.f. 01.02.2019). |
| Circular No. 76/50/2018-GST | 31 December 2018 | Clarification on certain issues (sale by government departments to unregistered person; leviability of penalty under section 73(11) of the CGST Act; rate of tax in case of debit notes / credit notes issued under section 142(2) of the CGST Act; applicability of notification No. 50/2018-Central Tax; valuation methodology in case of TCS under Income Tax Act and definition of owner of goods) related to GST |
| Circular No. 57/31/2018-GST | 4 September 2018 | Scope of Principal-agent relationship in the context of Schedule I of the CGST Act. |
| Circular No. 27/01/2018-GST | 4 January 2018 | Clarifications regarding levy of GST on accommodation services, betting and gambling in casinos, horse racing, admission to cinema, homestays, printing, legal services etc. |
Notifications (18)
| Number | Date | Subject |
|---|---|---|
| Notification No. 15/2025-Central Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 11/2017 - Central Tax (Rate) dated 28th June, 2017 to implement the recommendations of the 56th GST Council. |
| Notification No. 17/2025-Central Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 17/2017-Central Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council |
| Notification No. 15/2025-Integrated Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 8/2017- Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council. |
| Notification No. 17/2025-Integrated Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 14/2017-Integrated Tax (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council. |
| Notification No. 15/2025-Union Territory Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 11/2017- Union Territory Tax (Rate)dated 28th June, 2017 to implement the recommendations of the 56th GST Council. |
| Notification No. 17/2025-Union Territory Tax (Rate) | 17 September 2025 | Seeks to amend Notification No 17/2017 - Union Territory (Rate), dated 28th June, 2017 to implement the recommendations of the 56th GST Council. |
| Notification No. 34/2023-Central Tax | 31 July 2023 | Seeks to waive the requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions. |
| Notification No. 06/2019-Central Tax | 29 January 2019 | Seeks to amend notification No. 65/2017-Central Tax dated 15.11.2017 in view of bringing into effect the amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts. |
| Notification No. 56/2018-Central Tax | 23 October 2018 | Seeks to supersede Notification No. 32/2017-Central Tax, dated 15.09.2017. |
| Notification No. 01/2018-Central Tax (Rate) | 25 January 2018 | Seeks to amend notification No. 11/2017- Central Tax (Rate) so as to notify CGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018. |
| Notification No. 01/2018-Integrated Tax (Rate) | 25 January 2018 | Seeks to amend notification No. 8/2017- Integrated Tax (Rate) so as to notify IGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018. |
| Notification No. 01/2018-Union Territory Tax (Rate) | 25 January 2018 | Seeks to amend notification No. 11/2017- Union Territory Tax (Rate) so as to notify UTGST rates of various services as recommended by Goods and Services Tax Council in its 25th meeting held on 18.01.2018. |
| Notification No. 23/2017-Central Tax (Rate) | 22 August 2017 | Seeks to amend notification No. 17/2017-CT(R) to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc. |
| Notification No. 23/2017-Integrated Tax (Rate) | 22 August 2017 | Seeks to amend notification No. 14/2017-IT(R) to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc. |
| Notification No. 23/2017-Union Territory Tax (Rate) | 22 August 2017 | Seeks to amend notification No. 17/2017-UTT(R) to make ECO responsible for payment of GST on services provided by way of house-keeping such as plumbing, carpentering etc. |
| Notification No. 17/2017-Central Tax (Rate) | 28 June 2017 | To notify the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator amended by a later instrument |
| Notification No. 14/2017-Integrated Tax (Rate) | 28 June 2017 | To notify the categories of services the tax on inter-State supplies of which shall be paid by the electronic commerce operator amended by a later instrument |
| Notification No. 17/2017-Union Territory Tax (Rate) | 28 June 2017 | To notify the categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator amended by a later instrument |
Unsettled questions
The words of section 22 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.
- What makes a transfer of a business one made "as a going concern", and what evidences it? Sub-section (3) turns on the phrase and neither this section nor section 2 defines it.
See also
- Section 23 of the CGST Act, 2017: persons not liable for registration
- Section 24 of the CGST Act, 2017: compulsory registration in certain cases
- Section 143 of the CGST Act, 2017: job work procedure
- Rule 24 of the CGST Rules, 2017: migration of persons registered under the existing law
- Section 139 of the CGST Act, 2017: migration of existing taxpayers
References
- Central Board of Indirect Taxes and Customs. "Section 22. Persons liable for registration". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 4. Retrieved 17 September 2026.
- The Central Goods and Services Tax (Amendment) Act, 2018. Cited in CBIC footnotes 1 and 4.
- The Finance (No. 2) Act, 2019. Cited in CBIC footnote 2.
- Notification No. 01/2020-Central Tax, dated 1 January 2020: Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the CGST Act, 2017. Cited in CBIC footnote 2.
- The Central Goods and Services Tax (Extension to Jammu And Kashmir) Act, 2017. Cited in CBIC footnote 3.
External links
- CGST Act, 2017, Section 22 on the CBIC tax information portal