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CA Intermediate · Taxation · Charge of GST

Ramesh, an unregistered individual in Nagpur, sells goods only within Maharashtra. His aggregate turnover in the year is Rs 18 lakh, all from taxable goods supplies. Under the CGST Act, which of the following is correct about the charge of GST on his supplies?

Ramesh need not register or charge GST. A supplier of goods only, making intra-State supplies, is not liable to register until aggregate turnover crosses Rs 40 lakh in Maharashtra. His turnover is only Rs 18 lakh, so the Rs 20 lakh service threshold is irrelevant to him.

  1. AHe must charge GST because every supplier is liable from the first rupee
  2. BHe need not be registered or charge GST, as his turnover is within the Rs 40 lakh threshold for goods suppliers within a StateCorrect
  3. CHe must charge GST because his turnover exceeds Rs 20 lakh
  4. DHe is liable to GST only under reverse charge

Explanation

A supplier of goods only (intra-State) is exempt from registration up to an aggregate turnover of Rs 40 lakh in the normal category States, and Maharashtra is one. His turnover is Rs 18 lakh, so he is not liable to register or collect tax. The Rs 20 lakh limit applies to service suppliers.

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