Page 6 - Chapter 9 Registration
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Notes:- As per section 2(47), exempt supply includes non-taxable supply. Thus, supply of alcoholic
liquor for human consumption in Uttarakhand, being a non-taxable supply, is an exempt supply and is,
therefore, includible while computing the aggregate turnover.
Conclusion:-
Ü Rishabh Enterprises was not liable to be registered in February since its aggregate turnover did not
exceed ` 20 lakh in that month.
Ü However, since its aggregate turnover exceeds ` 20 lakh in March, it shall apply for registration in
Maharashtra within 30 days from the date on which it becomes liable to registration.
Ü Further, he is not liable to be registered in Uttarakhand since he is not making any taxable supply from
Uttarakhand.
CCP 09.02.05.00
Mohini Enterprises has appointed M/s Bestfords & Associates as its agent. All the supplies of goods
are made by M/s Bestfords & Associates as agent of Mohini Enterprises. Examine whether such
supplies shall be included in computation of aggregate turnover of the agent in order to determine
the liability to get registered under GST? When is the agent liable to register under GST? [Study
Mat-Example]
Answer:-
Legal Provision:- As per Explanation to section 22 of CGST Act, aggregate turnover includes all
supplies made by taxable person,
Ø whether on his own account or
Ø made on behalf of all his principals.
a) If agent is issuing invoice in his own name for further supply:-
Ø The agent's aggregate turnover shall include all supplies made on the behalf of the principal.
Ø Also, as per section 24 read with CBIC circular, such agent is required to take compulsory
registration.
b) If agent is issuing invoice in principal's name for further supply:-
The agent is eligible for threshold limit u/s 22 for registration, but its aggregate turnover includes
all supplies made on the behalf of the principal.
Discussion & Conclusion:-
Ü In given case, all supplies of goods are made by M/s Bestfords & Associates as agent of Mohini
Enterprises i.e. in the name of Principal.
Ü Thus, all such supplies shall be included in aggregate turnover of M/s Bestfords & Associates &
M/s Bestfords & Associates shall register on exceeding the threshold limit applicable under
section 22.
03. Section 23:- Person not liable for registration
CCP 09.03.06.00
Sameer is an agriculturist engaged in cultivation of wheat in his field in the State of Punjab. He was
exclusively engaged in supply of wheat cultivated in his field in the previous year. In the current
year, he decides to start trading in rice apart from supplying his wheat produce. His turnover in the
current year is ₹ 32 lakh from supply of wheat produced and ₹ 9 lakh from trading of rice. Explain
the registration requirement of Sameer. [Study Mat ]
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