Chapter VI - Registration
Section 22
Section 22: Persons liable for registration
Section 22 sets the main turnover-based registration test for a supplier in the State or Union territory from which taxable supplies are made. It also deals with succession and transfer of a registered business.
On this page
Need advice on Section 22?
This article is for general information. Refer to the Central Goods and Services Tax Act, 2017 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
(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: 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: 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 except the State of Jammu and Kashmir and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand.
Introduction
The Act states base thresholds and permits notified higher thresholds in specified cases, including exclusively goods suppliers. A current registration decision must check applicable notification, supply mix, State and sections 23–24; this guide does not treat the Act's maximum notified amount as a universal present threshold.
Key takeaways
Use aggregate turnover and supply State
The test is linked to aggregate turnover in a financial year and the State or Union territory from which taxable supplies are made.
Notified limits vary
The Act permits State-specific and exclusively-goods enhancements, so one national figure cannot be assumed for every business.
Succession can trigger registration
A transferee of a registered going concern is liable from transfer/succession; an amalgamation or demerger has the Act's certificate-date rule.
Turnover-based liability
Calculate aggregate turnover under the Act, including supplies made on behalf of principals as the section explains. Identify where taxable supplies originate and check the current applicable threshold notification for that State and business type.
Check exceptions and compulsory categories
Section 23 excludes or exempts some persons; section 24 identifies cases requiring registration despite section 22(1)'s turnover test, subject to section 23(2)'s overriding notification power. Review all three before concluding liability.
Business transfers
A transferee or successor of a registered going concern becomes liable from transfer or succession. For a scheme-based amalgamation or demerger, section 22(4) ties liability to the Registrar of Companies certificate that gives effect to the order.
Practical checklist
Do
- Calculate all-India aggregate turnover and document the supply State.
- Check current State and exclusively-goods threshold notifications.
- Review sections 23 and 24 and any relevant exemption notification.
- Record transfer and certificate dates in a business reorganisation.
Avoid
- Use the Act's maximum possible enhancement as the current limit in every State.
- Ignore supplies made on behalf of principals in the statutory turnover test.
Frequently asked questions
Is the registration threshold the same for every supplier?
No. Section 22 has base and potentially notified enhanced thresholds; State, supply type and current notifications matter.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026