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CA Intermediate · Taxation · Registration

Kaveri Handicrafts, a sole proprietor in Jaipur, supplies only goods (intra-State) and has no registration in any other State. For a normal-category State, the aggregate turnover threshold for compulsory registration for such a supplier of goods is:

The threshold is Rs 40 lakh. A supplier making only intra-State supplies of goods in a normal-category State must register once aggregate turnover exceeds Rs 40 lakh; the Rs 20 lakh limit applies to service providers, so it does not apply to Kaveri Handicrafts.

  1. ARs 10 lakh
  2. BRs 20 lakh
  3. CRs 40 lakhCorrect
  4. DRs 1.5 crore

Explanation

A person making exclusive intra-State supplies of goods in a normal-category State need register only if aggregate turnover exceeds Rs 40 lakh. Rs 20 lakh is the threshold for service providers (and for suppliers in certain special category States), so it is wrong here. Rs 1.5 crore relates to composition eligibility, not registration.

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