Skip to content

CMA Intermediate · Direct and Indirect Taxation · Registration

Kisan Agro, run by an agriculturist in Punjab, sells wheat grown on land that it cultivates. Which statement about registration of this supply is correct under the CGST Act?

The agriculturist is not liable to registration for supplying produce out of cultivation of land. Section 23(1)(b) grants this relief directly, without conditions about who buys the produce or whether the produce is separately notified.

  1. AThe agriculturist is not liable to registration to the extent of supply of produce out of cultivation of landCorrect
  2. BThe agriculturist must register as soon as any supply is made
  3. CThe agriculturist is exempt only if the produce is sold to unregistered persons
  4. DThe agriculturist is exempt only if the Government has notified the produce

Explanation

Section 23(1)(b) states that an agriculturist is not liable to registration to the extent of supply of produce out of cultivation of land. The Act places no condition about the buyer's status or a notification of the produce. So the option stating no liability for the produce supplied is correct.

Did you get it right without looking?

One question tells you little. A timed set on Registration shows your real accuracy, how long you take and where you lose marks.

Practise RegistrationFree diagnostic mock

More Registration questions