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24

CGST Act · Section 24

Compulsory registration

☐ Has transaction type been identified? ☐ Has s. 24 category applicability been verified? ☐ For inter-State, has Notification 10/2017-IT relief been considered? ☐ For CTP / NRTP, has s. 27 framework been applied? ☐ For RCM, has compulsory…

Section 24 compulsory registration — checklist (19 items)

Section 24 compulsory registration — checklist (19 items)

☐ Has transaction type been identified?

☐ Has s. 24 category applicability been verified?

☐ For inter-State, has Notification 10/2017-IT relief been considered?

☐ For CTP / NRTP, has s. 27 framework been applied?

☐ For RCM, has compulsory registration been ensured?

☐ For ECO (s. 9(5)), has category (iv) been applied?

☐ For ECO (s. 52 TCS), has categories (ix) + (x) been applied?

☐ For TDS deductors, has category (vi) been applied?

☐ For ISD (post-FA 2024), has category (viii) mandatory framework been applied?

☐ For agents, has category (vii) been applied?

☐ For OIDAR from outside India, has category (xi) been applied?

☐ Has Notification under category (xii) been tracked?

☐ Has coordination with s. 22 / 23 been done?

☐ Has Mohit Minerals constitutional framework been applied?

☐ Has Mafatlal procedural-fairness framework been observed?

☐ Has Vatika prospective-operation been applied?

☐ Has Bharti Airtel substance-over-form discipline been applied?

☐ Has Dilip Kumar strict-construction been considered?

☐ Has the file been reviewed for audit-defensibility?

Worked examples — five live scenarios

Example 1 — Inter-State goods supplier

Facts: Trader in Maharashtra supplies goods inter-State (to Karnataka). Turnover Rs. 5 lakh.

Analysis: Section 24(i) compulsory. Notification 10/2017-IT relief is service-specific. Goods inter-State supplier always registered.

Result: Registration required regardless of turnover.

Example 2 — Inter-State service supplier under Rs. 20 lakh

Facts: Consultant in Delhi provides services to clients in Mumbai (inter-State). Aggregate turnover Rs. 18 lakh.

Analysis: Notification 10/2017-IT — service suppliers up to Rs. 20 lakh exempted from s. 24(i). Practitioner discipline — verify Notification operative. Aggregate turnover monitored.

Result: Exempted under Notification 10/2017-IT.

Example 3 — Casual taxable person at trade fair

Facts: Vendor from UP participates in trade fair in Delhi for 7 days. Plans to sell Rs. 2 lakh worth.

Analysis: Section 24(ii) — CTP. Compulsory registration prior to commencement. Section 27 — 90-day validity + advance tax deposit.

Result: CTP registration required.

Example 4 — ISD post-FA 2024

Facts: Multi-State entity. Central office (Delhi) receives audit services for distribution to operational GSTINs.

Analysis: Section 24(viii) + FA 2024 s. 20 mandatory ISD framework. Post-1-Apr-2025, ISD registration mandatory at Delhi.

Result: Mandatory ISD registration.

Example 5 — Foreign OIDAR supplier

Facts: Foreign software company supplies online services to Indian individual users.

Analysis: Section 24(xi) — OIDAR from outside India to unregistered Indian. Compulsory registration. Framework — Indian representative; OIDAR compliance.

Result: Compulsory registration via Indian representative.

Planning and litigation strategy

  • • For each transaction type, verify s. 24 applicability before commencement.
  • • For inter-State services up to Rs. 20 lakh, leverage Notification 10/2017-IT.
  • • For CTP / NRTP operations, plan registration timing.
  • • For RCM-liable persons, register even without outward turnover.
  • • For ECO operations, build twin-registration framework.
  • • For ISD framework, transition to mandatory ISD by 1-Apr-2025.
  • • Track Government Notifications under category (xii).
  • • For foreign OIDAR, build Indian representative framework.
  • • Train compliance teams on twelve categories.
  • • Coordinate with State / UTGST parallel framework.
  • • Build documentary trail of registration applicability.
  • • Apply Bharti Airtel substance-over-form discipline.
  • • Apply Vatika prospective-operation for amendments.
  • • Maintain readiness for s. 24 disputes.
  • • Build precedent file on s. 24 jurisprudence.

Litigation defence

  • • For s. 24 challenges, plead category-specific framework.
  • • For inter-State service disputes, plead Notification 10/2017-IT framework.
  • • For ECO framework, distinguish s. 9(5) vs s. 52.
  • • For ISD challenges (post-FA 2024), plead mandatory framework.
  • • Plead Mohit Minerals constitutional framework.
  • • Use Mafatlal procedural-fairness framework.
  • • Apply Vatika prospective-operation.
  • • Use Bharti Airtel substance-over-form discipline.
  • • Use Whirlpool framework for writ jurisdiction.
  • • Apply Calcutta Discount Co. for jurisdictional discipline.
  • • Plead Modern Dental proportionality.
  • • Apply Dilip Kumar discipline for strict-category interpretation.
  • • Build precedent file on s. 24 jurisprudence.
  • • Coordinate with State / UTGST parallel framework.
  • • Maintain readiness for compulsory-registration litigation.
  • • Use Maneka Gandhi procedural-fairness for natural-justice anchor.

Cross-references

  • • Section 2(20) (Casual Taxable Person)
  • • Section 2(61) (ISD)
  • • Section 2(77) (Non-Resident Taxable Person)
  • • Section 9(3), (4), (5) (RCM + ECO framework)
  • • Section 20 (FA 2024 mandatory ISD)
  • • Section 22, 23 (threshold + exclusion framework)
  • • Section 25 (Procedure)
  • • Section 27 (CTP/NRTP framework)
  • • Section 51 (TDS)
  • • Section 52 (TCS by ECO)
  • • Notification 10/2017-IT (inter-State service relief)
  • • Notification 65/2017-CT (ECO service relief)
  • • Notification 13/2017-CT(R) (RCM categories)
  • • Notification 17/2017-CT(R) (ECO s. 9(5) categories)
  • • Section 9 (Levy framework)
  • • Section 16 (ITC eligibility)
  • • Section 22 (Persons liable for registration)
  • • Section 23 (Persons not liable)
  • • Section 24 (Compulsory registration)
  • • Section 25 (Procedure)
  • • Section 26 (Deemed registration)
  • • Section 27 (CTP / NRTP)
  • • Section 28 (Amendment)
  • • Section 29 (Cancellation / suspension)
  • • Section 30 (Revocation)
  • • Section 39 (Returns)
  • • Section 49 (Payment)
  • • Section 122 (Penalty)
  • • Section 161 (Rectification)
  • • Section 168 (Instructions)
  • • Article 246A, Constitution of India (concurrent legislative power)
  • • Article 14, Constitution of India (reasonableness)
  • • Article 19(1)(g), Constitution of India (right to carry on business)
  • • Article 21, Constitution of India (procedural due process)
  • • Article 226, Constitution of India (writ jurisdiction)
  • • Rules 8-26 (Registration framework)
  • • FORM GST REG-01 to REG-31 (Registration forms)
  • • Notification 10/2019-CT (Rs. 40 lakh threshold for goods-only suppliers)
  • • Notification 4/2017-CT (Common Portal)
  • • Mohit Minerals (2022) 10 SCC 700 (constitutional architecture)
  • • Vatika Township (2014) 367 ITR 466 (prospective operation)
  • • Mafatlal Industries (1997) 5 SCC 536 (procedural framework)
  • • Bharti Airtel v UoI (2021) 11 SCC 374 (substance over form)
  • • Whirlpool Corporation (1998) 8 SCC 1 (writ jurisdiction)
  • • Calcutta Discount Co. AIR 1961 SC 372 (jurisdictional limits)
  • • Modern Dental College (2016) 7 SCC 353 (proportionality)
  • • Maneka Gandhi (1978) 1 SCC 248 (procedural fairness)
  • • Dilip Kumar (2018) 9 SCC 1 (strict construction)
  • • Suguna Cutpiece (Madras HC 2022) 59 GSTL 73 (retrospective cancellation framework)