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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Meera runs a small trading firm in Pune that sells only taxable goods within Maharashtra. Her aggregate turnover in the year is Rs 35 lakh. Assuming she is a regular supplier of goods in a normal-category State with no special category status, is she liable to register under GST on the basis of turnover alone?

No. A supplier only of goods in a normal-category State such as Maharashtra must register only if aggregate turnover exceeds Rs 40 lakh. Meera's turnover of Rs 35 lakh is below this limit, so she is not liable to register on turnover alone.

  1. AYes, because the threshold for registration is Rs 10 lakh for all suppliers
  2. BNo, because the threshold for a goods supplier making intra-State supplies is Rs 40 lakhCorrect
  3. CYes, because every trader must register irrespective of turnover
  4. DNo, because the threshold for a goods supplier is Rs 75 lakh

Explanation

A supplier exclusively of goods in a normal-category State is liable to register only when aggregate turnover exceeds Rs 40 lakh. Rs 35 lakh is below this limit, so registration is not compulsory on turnover. The Rs 10 lakh limit applies to special category States, not Maharashtra.

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