Page 15 - Chapter 9 Registration

With the help of the above-mentioned information, answer the following questions giving reasons:-

1) Determine whether Mahadev Enterprises is liable to be registered under GST law and what is
the threshold limit of taking registration in this case assuming that it is not required to pay any
tax on inward supplies under reverse charge.
2) Explain with reasons whether your answer in (1) will change in the following independent

cases:-
a) If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh;
b) If Mahadev Enterprises is dealing in taxable supply of goods and services only from Himachal
Pradesh;

c) If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh and
has also effected inter - State supplies of taxable goods (other than notified handicraft goods &
notified hand-made goods) amounting to ₹ 4,00,000.
[CA Final RTP Nov 19] [Study Mat]
Answer:-

Legal Provision:-
Ü As per section 22 of CGST Act read with Notification No. 10/2019, a supplier is liable to be registered in the
State/ Union territory from where he makes a taxable supply of goods and/or services, if his aggregate

turnover in a financial year exceeds the threshold limit.
Ü The threshold limit for a person making exclusive supply of services or supply of both goods and
services is as under:-
Ø ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
Ø ₹ 20 lakh for the rest of India.

Ü The threshold limit for a person making exclusive intra-state supplies of goods:-
Ø ₹ 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
Ø ₹ 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and
Uttarakhand.

Ø ₹ 40 lakh for rest of India.
Ü As per section 2(6) of CGST Act, 2017, “aggregate turnover” means the aggregate value of all taxable
supplies, exempt supplies (wholly exempt, nil rated & Non-taxable), exports & inter-State supplies of
persons having same Permanent Account Number, to be computed on all India basis.
Discussion:-

Ü In given case, the state-wise aggregate turnover of Mahadev Enterprises is computed as under:-

Particulars Himachal Uttarakhand Tripura
Pradesh (₹) (₹) (₹)

Intra-State supply of taxable goods 22,50,000 - 7,00,000
Intra- State supply of exempted goods - - 6,00,000
Intra- State supply of non-taxable goods 21,00,000 40,000

[exempt supply includes non-taxable supply.
Thus, intra-State supply of non-taxable goods in
Uttarakhand, being a non-taxable supply, is an
exempt supply and is, therefore, included in
aggregate turnover]

Aggregate Turnover 22,50,000 21,00,000 13,40,000

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