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CA Intermediate · Taxation · Registration

Ananya Traders, a proprietorship in Pune, supplies only taxable goods intra-State from Maharashtra. Its aggregate turnover in the previous year was Rs 38 lakh. It is not in a special category State and has no other registration trigger. Applying the threshold for suppliers of goods only, what is the position on compulsory registration?

Registration is not compulsory. A supplier exclusively of goods making intra-State supplies in a normal category State must register only when aggregate turnover exceeds Rs 40 lakh. Rs 38 lakh is below that limit, and the Rs 20 lakh threshold applies to service providers, not to goods suppliers.

  1. ARegistration is compulsory because turnover exceeds Rs 20 lakh
  2. BRegistration is not compulsory because turnover does not exceed Rs 40 lakhCorrect
  3. CRegistration is compulsory because turnover exceeds Rs 10 lakh
  4. DRegistration is compulsory only if the proprietor opts for the composition scheme

Explanation

For a supplier exclusively of goods making intra-State supplies in a normal category State, the threshold is Rs 40 lakh aggregate turnover. Rs 38 lakh is below it, so registration is not compulsory. The Rs 20 lakh limit applies to service providers, so option A applies the wrong threshold.

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