Page 23 - Chapter 9 Registration

M/s S. Corporation should file all returns due for the period from June, 20XX till 1st January, 20XY.
Ü It can apply for revocation of cancellation of registration till 1st April, 20XY.

13. Combined Questions
CCP 09.13.30.00

Comment on the given independent situations relating to GST procedures. Your answer should
include relevant provisions of law, as may be applicable:-
Jugnoo Enterprises, a trader engaged in the buying and selling of medicines within the State of
Delhi, is not registered under GST. It exceeded the turnover of ₹ 20 lakh on 15th July, 20XX and also

exceeded the turnover of ₹ 40 lakh on 14th February, 20YY.
It applied for registration under GST on 28th February and registration certificate was
granted on 2nd March, 20YY. Determine the date on which liability to register arises and the
effective date of registration in this case. [CA Final May 22 Exam]
Answer:-

Ü Since Jugnoo Enterprises is engaged exclusively in intra-State taxable supply of goods in Delhi, it
becomes liable to register when its aggregate turnover exceeds ₹ 40 lakh, i.e., on 14th February,
20YY.
Ü Further, since it has applied for registration within 30 days from the date of becoming liable to register,

the effective date of registration is the date on which it becomes liable to register, i.e., 14th
February, 20YY.

CCP 09.13.31.00

Gautam Pvt. Ltd., Coimbatore, Tamil Nadu, exclusively manufactures and sells product 'Alpha'
which is exempt from GST vide notifications issued under relevant GST legislations. The company
sells product 'Alpha' only within Tamil Nadu and it not registered under GST. Further, all the
inward supplies of the company are taxable under forward charge. The turnover of the company in

the previous year was ₹ 55 lakh. The company expects the sales to grow by 15% in the current year.
Owing to the growing demand for the product, the company decided to increase its production
capacity and purchased additional machinery for manufacturing 'Alpha' on 1st July. The purchase
price of such capital goods was ₹ 30 lakh exclusive of GST @ 18%.

However, effective from 1st November, exemption available on 'Alpha' was withdrawn by the
Central Government and GST @ 12% was imposed thereon. The turnover of the company for the half
year ended on 30th September was ₹ 60 lakh.
a) The Board of Directors of Gautam Pvt. Ltd. wants to know whether they have to register under

GST (after withdrawal of exemption notification)?
b) In case in the above question, Gautam Pvt. Ltd. is already registered with respect to certain
taxable supplies being made by it along with manufacture of exempt product 'Alpha', other facts
remaining the same, can it take input tax credit on additional machinery purchased exclusively
for manufacturing 'Alpha'? If yes, then when and how much credit can be availed?

Advice Gautam Pvt. Ltd. on the above issues with reference to the provisions of GST law. [CA Final
RTP Nov 23] [CA Final Exam Nov 18, CA Final RTP Nov 19, Study Mat – Similar]
Answer:-

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