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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Arjun Traders, a proprietorship in Surat, supplies goods only within Gujarat and has an aggregate annual turnover well below the GST registration threshold applicable to it. It makes no inter-State supplies and does not sell through e-commerce operators. Which statement is correct?

Arjun Traders need not compulsorily register under GST because its turnover is below the threshold and no special category such as inter-State supply or e-commerce applies. It may still choose voluntary registration. Registration is not mandatory for every trader regardless of turnover.

  1. AIt is not liable to compulsorily register under GST solely on the basis of turnover, though it may opt for voluntary registrationCorrect
  2. BIt must register under GST because every trader must register irrespective of turnover
  3. CIt can register only after forming a company
  4. DIt must register in every State where its customers are located

Explanation

GST registration is compulsory only when turnover crosses the threshold or a specified category applies, such as inter-State supply of goods or supply through e-commerce operators. A supplier below the threshold with none of these triggers need not register but can register voluntarily. Option stating that all traders must register is wrong because the threshold exists.

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