Page 8 - Chapter 9 Registration

2 Intra-State supply of goods which are wholly exempt from GST u/s 11 of CGST Act 7,50,000
[exempt supply is specifically included in aggregate turnover u/s 2(6)]

3 Intra-State supply of goods chargeable with GST @ 12% [taxable supply is specifically 13,50,000
included in aggregate turnover u/s 2(6)]
Total Value of supplies 39,00,000

Notes:-
Ü M/s Usha Enterprises is not covered u/s 23 as it is not exclusively engaged in making exempt supply
or supply of agricultural produce.

Ü Since M/s Usha Enterprises is exclusively engaged in intra-state supply of goods, the threshold
limit applicable for registration will be ₹ 40 lakh.
Ü The aggregate turnover of M/s Usha Enterprises is `39 lakhs which is not exceeding ` 40 lakhs & thus, it
is not liable to register under GST in F.Y. 20XX-YY.

04. Section 24:- Compulsory registration in certain cases

CCP 09.04.08.00
M/s Shreya & Co., a firm of Chartered Accountant, has a registered office at Mumbai. During the
financial year, the firm undertook a consultancy project for a client M/s SK Enterprises located at

Bangalore for period of 6 months. The aggregate turnover during the financial year was ₹ 18,00,000.
Determine whether M/s Shreya & Co is required to obtain registration under GST?
Answer:-
Legal Provision:-

Ü As per section 24 of CGST Act, a person making any inter-state taxable supply is required to obtain
compulsory registration irrespective of the threshold limit.
Ü However, as per CBIC notification, the threshold limit of ` 20 lakh (` 10 lakh for Special Category States
of Mizoram, Tripura, Manipur & Nagaland) in a financial year is available in case of inter-State supply

of taxable services.
Discussion & Conclusion:-
Ü In given case, M/s Shreya & Co. is engaged in making inter-state taxable supply of services & hence the
threshold limit applicable for registration is `20 lakhs.

Ü The aggregate turnover of M/s Shreya & Co. is Rs. 18 lakhs which is not exceeding ` 20 lakhs & thus, it
is not liable to obtain registration.

CCP 09.04.09.00
Whether every supplier supplying goods &/or services through E-commerce Operator (ECO) is

compulsorily required to obtain registration under GST? Give reason for the answer.
Answer:-
Ü No, as per section 24 of CGST Act, a person who supply goods &/or services, other than services
specified under section 9(5), through such ECO who is required to collect tax at source u/s 52 is
compulsorily required to obtain registration under GST.

Ü Section 24 is attracted only if supply is made through ECO required to collect tax at source u/s 52.
Ü However, if a person is supplying goods through an ECO who is required to collect tax at source u/s 52 of
CGST Act & his aggregate turnover in preceding as well as current financial year does not exceed the

threshold applicable for registration u/s 22(1), then he is exempted from obtaining registration,

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