Page 9 - Chapter 10 Registration

CCP 10.02.09.00 Rajesh Dynamics is not liable to be registered in Chennai, Tamil Nadu, if his
Rajesh Dynamics, having its head office in Chennai, carries on the following aggregate turnover in a financial year does not exceeds ` 40 lakh. However, since
activities with respective turnovers in a financial year: Rajesh Dynamics also makes taxable supplies from Manipur, a specified Special
Particulars ` Category State, the threshold exemption gets reduced to ` 10 lakh in terms of section
Supply of petrol at Chennai, Tamil Nadu 18,00,000 22(1) [Notification No.10/2019-CT dated. 07.03.2019].
Value of inward supplies on which tax is payable on reverse charge basis 9,00,000
Rajesh Dynamics’ argument that it is not liable to registration since the
Supply of transformer oil at Chennai 2,00,000
threshold exemption of ` 40 lakh is not being crossed either at Chennai, Tamil Nadu,
Value of branch transfer from Chennai to Bengaluru without payment
1,50,000 Bengaluru, Karnataka or Manipur is not correct as firstly, the aggregate turnover to be
of consideration
considered in its case is ` 10 lakh and not ` 40 lakh and secondly, the same is
Value of taxable supplies at Manipur branch 11,50,000
computed on all India basis and not Statewise.
It argues that it does not have taxable turnover crossing threshold limit of Further, Rajesh Dynamics is also wrong in believing that aggregate turnover

` 40,00,000 either at Chennai, Tamil Nadu or Bengaluru, Karnataka and including is computed only for the purpose of determining the eligibility limit for composition
Ch10
turnover at Manipur branch. It believes that the determination of aggregate levy since the aggregate turnover is required for determining the eligibility for both
turnover is not required for the purpose of obtaining registration but is required registration and composition levy.

for determining composition levy. Further, Rajesh Dynamics is compulsorily required to register under section Registration
Decide based on the above facts: 24 irrespective of the turnover limit as it is liable to pay tax on inward supplies under
(i) The aggregate turnover of Rajesh Dynamics. reverse charge and it also makes inter-State taxable supply.
(ii) All conditions that fulfil the requirements for registration under CGST Act,
CCP 10.02.09.01
2017 in the given circumstances.[CA Final May 18 Old Syllabus][ICAI Material]
Answer:- Computation of aggregate turnover of Rajesh Dynamics: In the month of April 2020, Z started supply of goods in his proprietary firm and
Particulars ` also set up a one-man company named Z Ltd. He needs your assistance to work
Supply of petrol at Chennai, Tamil Nadu 18,00,000 out his aggregate turnover for the purpose of GST registration. The turnover
[Being a non-taxable supply, it is an exempt supply and thus, includible in details up to the month of July, 2020 are as under:
aggregate turnover vide section 2(6)] Sr. No. Particulars Amount in `
Value of inward supplies on which tax is payable on reverse charge basis Nil Supplies of taxable goods of his firm
i 31.50
Supply of transformer oil at Chennai 2,00,000
ii Supplies of taxable goods to a 100% EOU of his 1.50
Value of branch transfer from Chennai, Tamil Nadu to Bengaluru, Karnataka
1,50,000
firm
without payment of consideration [Being a taxable supply, it is includible in
iii Exports of taxable goods of his firm 2.60
aggregate turnover]
Value of taxable supplies of Manipur Branch 11,50,000 iv Exempt supplies of his firm 2.40
Aggregate turnover 33,00,000 v Supplies of non-taxable goods of his firm 3.00

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