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CA Intermediate · Taxation · Registration

Mehta Traders, a regular trader of goods in Maharashtra, was granted registration on 20 June. It applied on 5 June, having become liable on 28 May. Which date is the effective date of its registration, given that the application was made within 30 days of becoming liable?

The effective date is 28 May. Under the CGST Act, when a person applies within 30 days of becoming liable to register, the registration is effective from the date of liability, not from the application date or the date the proper officer grants the registration.

  1. A5 June, the date of application
  2. B28 May, the date it became liableCorrect
  3. C20 June, the date of grant
  4. D1 April of the financial year

Explanation

Where the application is made within 30 days of becoming liable, registration takes effect from the date on which the person became liable, i.e., 28 May. The grant date or application date is not the effective date. Date of application applies only to voluntary registrations or applications after 30 days.

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