Page 5 - Chapter 9 Registration

Particulars February March
(`)* (`)*

Serving of cooked food and cold drinks/non- alcoholic beverages in restaurant in 5,50,000 6,50,000
Maharashtra
Sale of alcoholic liquor for human consumption in Uttarakhand - 5,00,000
Supply of packed food items from restaurant in MH 1,50,000 2,00,000

*excluding GST
You are required to provide reasons for treatment of various items given above. [Study Mat] [CA
Final MTP April 2023]
Answer:-

Legal Provision:-
Ü As per section 22 of CGST Act, 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 taxable supply of services or supply of both
goods and services is as under:-
(i) ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.

(ii) `20 lakh for the rest of India.
Ü As per section 2(6) of CGST Act, 2017, “aggregate turnover” means the aggregate value of all:-
Ø taxable supplies,
Ø exempt supplies (wholly exempt, nil rated & Non-taxable)
Ø exports &

Ø inter-State supplies
of persons having the same Permanent Account Number, to be computed on all India basis
but excludes:-

Ø central tax, State tax, Union territory tax, integrated tax and cess &
Ø the value of inward supplies on which tax is payable by a person on reverse charge basis.
Discussion:-
Ü In given case, since Rishabh Enterprises is engaged in making taxable supplies of goods and services

from Maharashtra and non-taxable supplies from Uttarakhand, the threshold limit for obtaining
registration is ` 20 lakh.
Ü Computation of aggregate turnover of Rishabh Enterprises is as under:-

Particulars Turnover of Cumulative Turnover of
February (`) February & March (`)
Serving of cooked food and cold drinks/non-alcoholic 12,00,000
beverages in restaurant in Maharashtra 5,50,000 [`5,50,000 + `6,50,000]
Add: Sale of alcoholic liquor for humanconsumption in 5,00,000
-
Uttarakhand [Note-1]

Add: Supply of packed food items from restaurant in 1,50,000 3,50,000
Maharashtra [`1,50,000 +`2,00,000]
Aggregate Turnover 7,00,000 20,50,000

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