Page 7 - Chapter 9 Registration

Answer:- Legal Provision:-

Ü As per section 22 of CGST Act read with Notification No. 10/2019, any person who is engaged in
exclusive intra-state supply of goods and whose aggregate turnover in the financial year does not
exceed ₹ 40 lakh are exempt from registration, subject to some conditions to be fulfilled.
Ü As per section 23 of CGST Act, an agriculturist is not liable to registration even if his aggregate
turnover exceeds the threshold limit for registration u/s 22, to the extent of supply of produce out of

cultivation of land.
Discussion & Conclusion:-
Ü In given case, Sameer was not liable to registration in preceding year as he was exclusively

engaged in supply of produce out of cultivation of land.
Ü From current year, he is engaged in trading of rice also & hence, he is not covered u/s 23.
Ü The threshold limit for registration applicable to a person exclusively engaged in supply of goods in
the State of Punjab is ` 40 lakh.

Ü The aggregate turnover of Sameer in the current year is ₹ 41 lakh [₹ 32 lakhs + ₹ 9 lakhs] which
exceeds the threshold limit.
Ü Thus, he will be liable to registration in current year.

CCP 09.03.07.00
M/s Usha enterprises made the following supplies within the state of Maharashtra in the financial
year 20XX-YY. You are required to determine whether it is required to obtain registration under
GST law.
SI.No Particulars `
1 Intra-State supply of agricultural produce grown out of cultivation of land by 18,00,000

family
Intra-State supply of goods which are wholly exempt from GST u/s 11 of CGST
2 7,50,000
Act,2017

3 Intra-State supply of goods chargeable with GST @ 12% 13,50,000
Answer:-
Legal provision:-
Ü As per Sec 22 of CGST Act read with Notification No. 10/2019, any person who is engaged in exclusive
intra-state supply of goods and whose aggregate turnover in the financial year does not exceed `40

lakh is exempt from registration, subject to some conditions to be fulfilled.
Ü As per Sec 23(1) of CGST Act, 2017, following are not liable to obtain registration:
Ü a person exclusively supplying goods &/or services not liable to tax/ wholly exempt from tax

under GST Acts or
Ü an agriculturist, to the extent of supply of produce out of cultivation of land.
Discussion & Conclusion:-
Computation of Aggregate Turnover of M/s Usha enterprises for the year 20XX-YY

SI.No Particulars `
1 Intra-State supply of agricultural produce grown out of cultivation of land by family 18,00,000
[Supply of agricultural produce is exempt from GST & exempt supply is specifically
included in aggregate turnover u/s 2(6)]

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