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CA Intermediate · Taxation · Registration

Ravi Traders, a proprietorship in Pune, supplies only taxable goods intra-State. Its aggregate turnover in the preceding financial year was Rs 38 lakh. It is not a special category State. Ravi has no inter-State supplies and no other registration-triggering activity. Is Ravi liable to be registered under CGST Act on turnover basis?

Ravi is not liable to register, because a supplier exclusively of goods in a normal category State, making intra-State supplies, must register only when aggregate turnover exceeds Rs 40 lakh. His turnover of Rs 38 lakh is below that limit, and no other compulsory trigger applies.

  1. AYes, because the threshold for suppliers of goods is Rs 20 lakh
  2. BYes, because every person making taxable supplies must register
  3. CNo, because the threshold for suppliers of goods only is Rs 40 lakhCorrect
  4. DNo, because the threshold for suppliers of goods is Rs 75 lakh

Explanation

For a person engaged exclusively in intra-State supply of goods in a normal category State, the registration threshold is Rs 40 lakh of aggregate turnover. Rs 38 lakh is below it, so registration is not compulsory on turnover. The Rs 20 lakh limit applies to service providers (and not to this goods supplier), so the first option is wrong.

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