Must a section 8 company register for GST?
A section 8 company must register for GST when its aggregate turnover crosses the threshold in section 22, or when section 24 makes registration compulsory. Incorporation under section 8 does not by itself require a GSTIN, and it does not by itself keep the company out.
When does the threshold apply?
Aggregate turnover is counted for the whole PAN, across India. For a supply of goods the threshold is ₹40 lakh in most states and ₹20 lakh in special category states. For services it is ₹20 lakh, or ₹10 lakh in special category states. A company that supplies services, or both goods and services, stays on the service threshold. The certificate, once registration is granted, is GST REG-06. The application steps are on the GST registration page.
Section 24 can require registration even below that turnover. The ordinary threshold does not remove a compulsory case, such as a person who must pay tax under reverse charge.
Does a charitable supply stay outside?
Services by an entity registered under section 12AA or section 12AB, by way of charitable activities as the GST notification defines them, are exempt. The definition is narrower than the objects clause of a section 8 company. A fee for a workshop, a sale of goods, or another supply that is not inside that definition can be a taxable supply. A person engaged only in exempt supplies is not liable to register. Once the company also makes a taxable supply, exempt receipts are included in aggregate turnover, and the threshold can be crossed. Section 24 can still require registration.
What does the licence not decide?
The section 8 licence stops a dividend. It does not stop the company paying remuneration, and it does not grant a GST exemption. Section 80G is a deduction for the person who donates. It is not an exemption from GST. Income-tax registration under section 12AB is a separate question, answered on the section 8 return page. There is no separate form that converts every supply of a section 8 company into an exempt supply.
Frequently asked questions
Four questions cover the licence, a fee, the threshold, and section 80G.
Does the section 8 licence replace a GSTIN?
No. The licence is under the Companies Act. A GSTIN is issued under the GST law when registration is required or is taken voluntarily.
Is every fee the company charges exempt?
No. The exemption covers the charitable activities the GST notification defines, for an entity registered under section 12AA or 12AB. A fee for a supply outside that definition can be taxable.
Do both goods and services use the goods threshold?
No. A supply of services, and a supply of both goods and services, uses the service threshold. Only a supply of goods uses the higher goods threshold.
Does section 80G cancel GST?
No. Section 80G is a deduction for the donor under the Income-tax Act. It does not decide whether a supply is taxable under GST.
Sources
GST registration follows section 22 and section 24 of the CGST Act. A section 8 company is a company, and a company is a person under that Act.