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CA Intermediate · Taxation · Registration

Kaveri Handicrafts, a sole proprietor in Jaipur, supplies only handicraft goods within Rajasthan. Its aggregate turnover in the current financial year is Rs 38 lakh. Rajasthan is a normal category State and the supplier is not covered by any special registration provision. Is Kaveri Handicrafts liable to register under GST on the basis of turnover?

Kaveri Handicrafts is not liable to register on turnover grounds. A supplier dealing only in goods within a normal category State must register only when aggregate turnover exceeds Rs 40 lakh, and its turnover of Rs 38 lakh stays below that limit.

  1. AYes, because the threshold for goods suppliers is Rs 20 lakh
  2. BNo, because the threshold for suppliers of goods only in a normal category State is Rs 40 lakhCorrect
  3. CYes, because every supplier of goods must register once turnover crosses Rs 10 lakh
  4. DNo, because handicraft suppliers are exempt from registration at any turnover

Explanation

A person supplying only goods intra-State in a normal category State is liable to register only when aggregate turnover exceeds Rs 40 lakh. Rs 38 lakh is below this limit, so registration is not compulsory. The Rs 20 lakh limit applies to service suppliers, and the Rs 10 lakh limit applies to special category States, so options 1 and 3 are wrong.

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