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CA Intermediate · Taxation · Registration

Ananya Traders, Jaipur, supplies only taxable goods within Rajasthan. Its aggregate turnover in the preceding financial year was Rs 38 lakh. The state is a general category state (not a special category state). Under the CGST Act, 2017, what is the position about its compulsory registration based on turnover?

Ananya Traders need not register on turnover grounds. A person supplying only goods within a general category state becomes liable once aggregate turnover exceeds Rs 40 lakh, and its turnover of Rs 38 lakh stays below that threshold.

  1. AIt must register because the limit for goods suppliers is Rs 20 lakh
  2. BIt is not liable to register on turnover, as the threshold for a goods-only supplier in a general category state is Rs 40 lakhCorrect
  3. CIt must register because the limit for goods suppliers is Rs 10 lakh
  4. DIt is not liable because the limit for all suppliers is Rs 75 lakh

Explanation

A supplier exclusively of goods in a general category state is liable to register only if aggregate turnover exceeds Rs 40 lakh. Rs 38 lakh is below this limit, so no turnover-based registration is required. The Rs 20 lakh limit applies to services suppliers (Rs 20 lakh) and is wrongly applied in the first option.

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