GST Section 24: Mandatory GST Registration Explained with Provisions, Rules & Exceptions

GST Section 24: Mandatory GST Registration Requirements Explained

Introduction

The Goods and Services Tax (GST) in India has revolutionized the way businesses operate. Introduced on 1st July 2017, GST unified multiple indirect taxes like VAT, Service Tax, Excise Duty, and others into a single comprehensive tax system. Every business owner, service provider, or supplier of goods needs to understand the provisions of GST for compliance.   mandatory GST registration

One of the most crucial aspects of GST law is registration. Without GST registration, a business cannot collect tax from customers or claim input tax credit (ITC). While Section 22 of the CGST Act defines who is liable to register under GST based on turnover, Section 24 of the CGST Act, 2017 lays down the cases where registration is mandatory irrespective of turnover.

This article will give you a complete guide to GST Section 24, its implications, mandatory registration requirements, examples, penalties for non-compliance, and FAQs for better clarity.

 

Categories Requiring Mandatory GST Registration Under Section 24

Let’s discuss each category under Section 24 in detail with practical examples:

1. Inter-State Taxable Supply

Any business making inter-state supply of goods or services must register under GST, regardless of turnover.

Example: A clothing trader in Delhi supplying to customers in Maharashtra needs GST registration, even if his turnover is below ₹20 lakh.

2. Casual Taxable Person

A person occasionally supplying goods/services in a state where they do not have a fixed place of business.

Example: A trader from Gujarat sets up a temporary stall at a trade fair in Mumbai. He must register as a casual taxable person.

3. Persons Required to Pay Tax Under Reverse Charge Mechanism (RCM)

Under RCM, the recipient of goods/services is liable to pay GST instead of the supplier. Such recipients must register.

Example: A business availing legal services from an advocate must pay GST under RCM, hence needs registration.

4. Non-Resident Taxable Person

Non-resident suppliers providing goods/services in India must register.

Example: A foreign company supplying software to Indian clients must obtain GST registration.

5. Agents Supplying Goods/Services on Behalf of Other Taxable Persons

Any agent or intermediary supplying on behalf of others must register.

Example: A commission agent selling agricultural machinery for multiple manufacturers must obtain GST registration.

6. Input Service Distributor (ISD)

An office that receives invoices for input services and distributes ITC to branches must register as ISD.

Example: A corporate head office distributing ITC to its regional offices.

7. E-commerce Operators

Platforms facilitating supply of goods/services through e-commerce must register.

Example: Amazon, Flipkart, Zomato, and Swiggy require GST registration.

8. Suppliers Through E-commerce Operators

Suppliers selling through e-commerce platforms must register, irrespective of turnover.

Example: A handicraft seller listing products on Amazon must obtain GST registration.

9. Persons Supplying Online Information and Database Access or Retrieval Services (OIDAR)

Foreign suppliers providing online services like software downloads, music, or cloud services to Indian customers must register.

Example: Netflix or Google providing services in India.

10. Persons Required to Deduct Tax at Source (TDS)

Government departments or notified persons deducting TDS under GST must register.

11. Persons Required to Collect Tax at Source (TCS)

E-commerce operators collecting TCS must register

Section 24 vs Section 22 – Key Difference

Section 22: Businesses must register if turnover exceeds threshold limits.

Section 24: Certain businesses must register even if turnover is below threshold.

For example:

A small Delhi-based bakery selling only locally can avoid GST registration until it crosses ₹20 lakh turnover (Section 22).

But the same bakery selling cakes online through Amazon must register mandatorily under Section 24.

Importance of Mandatory Registration under Section 24

1.     Legal Compliance – Avoids penalties and legal action.

2.     Wider Market Access – Enables interstate and online selling.

3.     Input Tax Credit Benefits – Businesses can claim ITC on purchases.

4.     Credibility – Registered businesses gain customer trust.

Penalty for Not Registering under Section 24

If a person is liable to register under GST but fails to do so:

·        Penalty: 10% of tax due (minimum ₹10,000).

·        In case of fraud: 100% of tax due.

Other consequences: Cannot issue tax invoices, no ITC claim, risk of legal proceedings

Documents Required for GST Registration

To comply with Section 24, businesses must provide:

1.     PAN Card of applicant/business

2.     Aadhaar Card

3.     Proof of business address (rent agreement, electricity bill)

4.     Bank account details

5.     Photograph of proprietor/partners/directors

Digital Signature (for companies/LLPs)

How to Register for GST under Section 24

Registration is online via the GST portal

Steps:

1.     Visit GST portal → Click “New Registration”

2.     Fill Part A (PAN, mobile, email) → OTP verification

3.     Fill Part B (business details, documents upload)

4.     Application reference number generated

5.     Verification by GST officer

6.     Issue of GSTIN within 7 working days

Real-Life Examples of Section 24 Application

1.     Small Artisan Selling on Amazon

Even with ₹3 lakh turnover, GST registration is mandatory due to online selling.

2.     Foreign Software Company

A Singapore-based firm providing cloud storage to Indian users must register as a non-resident taxable person.

3.     Law Firm Services

A business availing legal consultancy must register under RCM liability.

Recent Updates Related to Section 24

Exemption for Intra-State Supplies: Small suppliers making intra-state supply through e-commerce (like handicrafts) may get exemption.

Threshold Clarification: Section 24 overrides threshold; hence, businesses under this section must register regardless of turnover

FAQs on GST Section 24

Q1. What is Section 24 of GST?

Ans: Section 24 of the CGST Act lists categories of persons/businesses who must register under GST, even if their turnover is below the threshold limit.

Q2. Is GST registration mandatory for all e-commerce sellers?

Ans: Yes, any person supplying through e-commerce platforms like Amazon or Flipkart must register under Section 24.

Q3. Do freelancers need to register under Section 24?

Ans: If a freelancer provides services interstate or through online platforms, GST registration is mandatory.

Q4. What if I don’t register under Section 24?

Ans: You may face penalties, legal notices, and will not be allowed to claim ITC or issue tax invoices.

Q5. Can I apply for voluntary registration under GST?

Ans: Yes, businesses can voluntarily register for GST to avail ITC and expand their market

Conclusion

GST Section 24 is one of the most important provisions in the GST framework, ensuring that certain businesses register mandatorily, irrespective of turnover. This includes interstate suppliers, e-commerce operators, agents, casual taxable persons, and foreign service providers.

For businesses, compliance with Section 24 not only avoids penalties but also brings long-term benefits such as input tax credit, legal recognition, and expansion opportunities.

Understanding GST provisions like Section 24 is crucial for entrepreneurs, startups, freelancers, and even large corporations. If you fall under any category mentioned in Section 24, it is best to register for GST at the earliest to remain compliant and operate smoothly in today’s tax environment.

who needs GST registration under Section 24

Old vs new tax regimeTax Planning: Key Deductions and Exemptions to Save More Before ITR Filing

Tax Planning: Key Deductions and Exemptions Everyone Should Know Before ITR Filing

Filing your Income Tax Return (ITR) is not just about complying with the law—it is also a golden opportunity to optimize your finances through effective tax planning. Most taxpayers in India end up paying higher taxes simply because they are unaware of the available deductions and exemptions under the Income Tax Act.

In this blog, we will explore in detail the key deductions, exemptions, and smart tax planning strategies that can help you save money legally and efficiently before you file your ITR.

Why Tax Planning Matters

Tax planning is the process of organizing your finances so that you minimize tax liability without breaking the law. The benefits include:

   Lower tax outgo – by claiming deductions and exemptions.

    Better financial management – aligning savings with future             goals.

     Compliance with tax laws – avoiding penalties or notices.

     Increased investment discipline – tax-saving instruments often         double up as long-term investments.

Key Deductions and Exemptions to Know Before ITR Filing

The Income Tax Act, 1961 provides various provisions under Sections 80C to 80U and exemptions on allowances to reduce taxable income. Let’s break them down.

1. Section 80C – The Most Popular Deduction (₹1.5 Lakh Limit)

Section 80C is the most commonly used tax-saving tool. You can claim up to ₹1.5 lakh in a financial year by investing in specified instruments:

      Life Insurance Premiums

     Employee Provident Fund (EPF) and Public Provident Fund               (PPF)

      Equity-Linked Savings Scheme (ELSS) mutual funds

      National Savings Certificate (NSC)

   Tax-saving Fixed Deposits (FDs) (5 years lock-in)

   Principal repayment of Home Loan

   Sukanya Samriddhi Yojana (SSY) contributions

   Tuition Fees for Children

👉 Tip: ELSS mutual funds offer the shortest lock-in (3 years) and potential high returns.

2. Section 80D – Health Insurance Premiums

Health is wealth, but did you know it can also save you taxes?

Deduction of up to ₹25,000 for health insurance premiums paid for self, spouse, and children.

Additional ₹25,000 (or ₹50,000 if parents are senior citizens) for parents’ health insurance.

 Preventive health check-up expenses up to ₹5,000 are also allowed within this limit.

👉 Example: If you’re under 60 and pay for your senior citizen parents’ insurance, you can claim ₹75,000 in total.

3. Section 24(b) – Home Loan Interest Deduction

If you have a home loan, the interest paid on the loan qualifies for a deduction of up to:

₹2,00,000 per year for self-occupied property.

Full interest for a property that is rented out (no upper cap,              subject to conditions).

Combined with 80C (principal repayment), home loan borrowers get significant tax benefits

4. House Rent Allowance (HRA) – Section 10(13A)

For salaried employees receiving HRA, exemption can be claimed based on the least of the following:

     Actual HRA received.

     40% (non-metro) / 50% (metro) of basic salary + DA.

     Rent paid minus 10% of salary.

👉 Note: If you don’t receive HRA but pay rent, you can claim deduction under Section 80GG (up to ₹60,000 per year).

5. Leave Travel Allowance (LTA)

You can claim exemption for travel expenses incurred during domestic trips with family (spouse, children, parents, and siblings).

     Allowed twice in a block of 4 years.

     Covers travel by air, rail, or bus (actual fare).

     Does not cover hotel or food expenses.

6. Section 80E – Education Loan Interest

If you have taken a loan for higher education (self, spouse, children), the entire interest paid can be claimed as a deduction.

       No upper limit.

· Deduction available for 8 years from the year repayment begins.

7. Section 80G – Donations to Charitable Institutions

Donations made to registered funds and institutions are eligible for deductions:

       100% or 50% deduction depending on the institution.

Popular examples: PM National Relief Fund, NGOs, and government-approved trusts

8. Section 80CCD(1B) – Additional Deduction for NPS

Investments in the National Pension Scheme (NPS) qualify for:

        Up to ₹50,000 extra deduction under 80CCD(1B) (over and above 80C limit).

        Taxpayers looking to boost retirement savings and lower taxes often choose this.

9. Standard Deduction for Salaried Employees

Every salaried individual can claim a flat deduction of ₹50,000 from their income, without needing to submit bills.

10. Exemptions on Long-Term Capital Gains (LTCG)

You can save capital gains tax by:

       Investing gains from selling property into another residential house (Section 54).

       Investing in specified bonds under Section 54EC (up to ₹50 lakh).

        Using gains for purchase/construction of new house property.

Old vs New Tax Regime: Which One to Choose?

The government introduced the new tax regime with lower slab rates but without most deductions.

       Old Regime: Higher tax rates but allows claiming all deductions (80C, HRA, home loan, etc.).

        New Regime: Lower tax rates, fewer deductions, simplified filing.

👉 Best suited for:

       Old regime – If you have high investments in 80C, insurance, home loan, HRA.

     New regime – If you don’t invest much in tax-saving instruments.

FAQs on Tax Planning and ITR Filing

Q1. Can I claim both HRA and home loan benefits?
Yes, if you live in a rented house and also repay a home loan on another property, you can claim both.

Q2. Is it mandatory to submit proof of investment to claim deductions?
Yes, employers may ask for proof. But even if not submitted, you can claim while filing ITR.

Q3. Can I switch between old and new tax regimes every year?
Yes, salaried individuals can choose each year while filing ITR.

Q4. What happens if I miss declaring investments before March 31?
You cannot claim deductions for that financial year. Plan investments within the financial year itself.

Q5. Which tax-saving investment is best for beginners?
ELSS (Equity Linked Savings Scheme) is popular for its short lock-in and growth potential.

Conclusion

Effective tax planning is not just about saving money—it’s about making smarter financial decisions. By understanding and using the right deductions and exemptions like 80C, 80D, HRA, NPS, and home loan benefits, you can significantly reduce your taxable income.

Before filing your ITR, take time to review your income, investments, and eligible deductions. Also, compare the old vs new tax regime to see which works best for your situation. With careful planning, you can not only save taxes but also create long-term wealth.

Government Cuts GST on Medicines & Medical Devices | Prices Cheaper from Sept 22, 2025

Government Cuts GST on Medicines and Medical Devices, Prices to Get Cheaper from September 22, 2025

government reduces GST September 22, 2025

The Government of India has announced a major relief for millions of patients and healthcare consumers by reducing the Goods and Services Tax (GST) on essential medicines and medical devices' GST cut on medicines

This crucial decision will come into effect from September 22, 2025, and is expected to bring down the prices of several life-saving drugs and commonly used medical equipment.

This move has been welcomed by patients, doctors, and the healthcare industry alike, as it not only reduces the financial burden on citizens but also strengthens the government’s commitment towards making healthcare more affordable and accessible for all.

In this article, we will cover everything you need to know about this GST cut on medicines and medical devices, including the categories affected, expected price changes, industry reactions, benefits for patients, challenges, and its long-term impact on India’s healthcare sector.

 

Why Did the Government Reduce GST on Medicines and Medical Devices?

Healthcare costs have been a matter of concern in India for decades. Although the country has made rapid advancements in medical technology and hospital infrastructure, affordability continues to remain a major challenge for the common man.

The government’s decision to cut GST rates on medicines and medical devices is rooted in three main reasons:

Affordable Healthcare – Making life-saving medicines and critical devices cheaper for patients.

Boosting Accessibility – Encouraging more people to seek medical treatment without worrying about heavy bills.

Supporting Local Manufacturing – Strengthening the domestic pharmaceutical and medical equipment industry by reducing tax burdens.

By implementing this change from September 22, 2025, the government aims to reduce out-of-pocket expenditure on healthcare, which currently accounts for nearly 50% of total health spending in India.

 

Key Changes in GST Rates

Here are the highlights of the GST rate cuts on medicines and medical devices:

• Essential Medicines: GST reduced from 12% to 5%.

• Life-saving Drugs (such as cancer, diabetes, cardiac medicines): GST brought down from 5% to zero (exempted).

• Medical Devices (like stents, implants, syringes, and diagnostic equipment): GST reduced from 12% to 5%.

• Over the Counter (OTC) Medicines: GST lowered from 18% to 12%.

• Ayurvedic & Homeopathic Medicines: GST reduced from 12% to 5% to encourage traditional healthcare adoption.

This revision means a direct reduction in retail prices of medicines and devices from September 22, 2025. For patients requiring long-term medication or surgical procedures, this can translate into significant annual savings.

 

Example of Price Reduction

To understand how this tax cut will impact patients, let’s take a few examples:

           Insulin for Diabetic Patients

• Old Price: ₹500 (with 12% GST = ₹560)
• New Price: ₹500 (with 5% GST = ₹525)
• Savings: ₹35 per unit

• Cardiac Stent
• Old Price: ₹40,000 (with 12% GST = ₹44,800)
• New Price: ₹40,000 (with 5% GST = ₹42,000)
• Savings: ₹2,800 per stent

• Cancer Drug (Exempted Now)
• Old Price: ₹15,000 (with 5% GST = ₹15,750)
• New Price: ₹15,000 (GST exempted)
• Savings: ₹750 per dose

For a family that spends ₹10,000–15,000 monthly on medicines, this cut could mean annual savings of ₹15,000–20,000.

 

How Patients Will Benefit

The biggest beneficiaries of this decision are ordinary citizens, particularly:

• Chronic Disease Patients: People suffering from diabetes, hypertension, heart disease, and cancer require lifelong medicines. Lower prices will ease their financial burden.

• Middle-class Families: Healthcare costs often eat into their monthly budgets. Reduced GST helps them save more.

• Senior Citizens: Retired individuals depending on pensions and savings will find medicines more affordable.

• Rural Households: With cheaper devices and medicines, healthcare penetration in rural areas will improve.

This step also aligns with the Ayushman Bharat scheme, where the government is already working towards universal healthcare access.

 

Impact on the Healthcare Industry

The pharmaceutical and medical device industries will also see notable changes:

Increased Demand: Cheaper prices will encourage more patients to purchase prescribed medicines and undergo treatments.

Boost to Indian Manufacturers: With lower taxes, domestic manufacturers can compete more effectively against imported products.

Export Competitiveness: Indian medicines are already popular worldwide for being cost-effective. Lower GST can reduce production costs and improve exports.

Pharma Retail Growth: Retailers and pharmacies expect higher footfall due to reduced MRPs.

However, some companies fear short-term revenue losses due to the lower tax rate. Yet, most analysts believe that higher volumes and increased affordability will balance the loss.

 

Doctors and Hospital Reactions

Medical professionals have widely welcomed the government’s decision. Many doctors have long demanded lower taxes on essential medicines, as high prices often force patients to discontinue treatment.

Hospitals also believe that reduced GST on stents, implants, and surgical devices will lower overall treatment costs, making advanced surgeries more accessible to the masses.

 

Challenges Ahead

While the GST cut is a positive step, there are certain challenges that need to be addressed:

• Implementation Issues: Pharmacies and hospitals need to update billing systems immediately from September 22, 2025.

• Monitoring Prices: Authorities must ensure that manufacturers and retailers pass on the tax benefit to consumers instead of keeping margins high.

• Revenue Loss for Government: The government may face reduced tax collections in the short term, which could affect fiscal planning.

• Supply Chain Adjustments: Distributors and stockists must realign existing inventory to reflect new GST rates.

 

Comparison with Other Countries

Globally, many countries exempt life-saving medicines from taxes. For instance:

• UK: Medicines are zero-rated for VAT.

• USA: No federal tax on prescription drugs.

• Canada: Prescription medicines are exempt from GST/HST.

India’s move to reduce or exempt taxes on essential medicines brings it closer to global practices, where healthcare is considered a public good, not a taxable luxury.

 

Long-Term Impact

If successfully implemented, this GST cut can have several long-term effects on India’s healthcare system:

Improved Public Health: More people will be able to afford medicines, leading to better treatment outcomes.

Reduced Medical Debt: Families will spend less on healthcare, lowering cases of financial distress caused by hospital bills.

Growth of Domestic Industry: Indian pharmaceutical and device companies will gain momentum in both local and international markets.

Step Towards Universal Healthcare: This move complements existing government schemes and strengthens India’s path toward inclusive healthcare.

 

Government’s Statement GST on life-saving drugs

While announcing the decision, the Finance Ministry stated:

“Healthcare is a basic right, and no citizen should be denied treatment due to high costs. By reducing GST on medicines and medical devices, we aim to make healthcare more affordable and accessible for every Indian.”

This highlights the government’s vision of balancing fiscal needs with social welfare.

 

FAQs on GST Cut on Medicines and Medical Devices

Q1. From when will the new GST rates apply?
The new GST rates on medicines and medical devices will be effective from September 22, 2025.

Q2. Which medicines are exempted from GST now?
Life-saving drugs such as cancer medicines, insulin, dialysis drugs, and HIV/AIDS drugs are now exempted from GST.

Q3. What is the new GST rate on medical devices like stents and implants?
The GST has been reduced from 12% to 5% on critical medical devices.

Q4. Will over-the-counter (OTC) medicines also get cheaper?
Yes, OTC medicines such as painkillers, cough syrups, and fever medicines will see a tax reduction from 18% to 12%.

Q5. How much can an average patient save annually?
Depending on medication needs, families could save anywhere between ₹10,000 to ₹20,000 annually.

Q6. Will hospitals reduce surgery costs after GST cuts?
Yes, since implants and surgical devices will be cheaper, hospitals are expected to pass on benefits by reducing overall surgery costs.

Q7. Will this affect government revenue?
There may be some short-term revenue loss, but higher demand and improved healthcare access are expected to balance it in the long run.

 

Conclusion cheaper medicines in India

The decision to cut GST on medicines and medical devices from September 22, 2025, is a historic step towards making healthcare affordable for all. Patients suffering from chronic diseases, families struggling with high medical bills, and even hospitals will benefit immensely from this move.

While challenges like effective implementation and monitoring remain, the long-term benefits outweigh the short-term hurdles. By reducing the cost of treatment and aligning with global practices, India is taking a strong step towards universal, affordable, and accessible healthcare.

For millions of citizens, this decision is not just about tax cuts — it is about hope, relief, and better health. Affordable healthcare India