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CS Executive · Setting Up of Business, Industrial and Labour Laws · Identifying Laws applicable to various Industries and their Initial Compliances

Rohan Traders, a partnership firm in Jaipur, will buy goods from Gujarat and sell them in Rajasthan. Its aggregate turnover is above the prescribed GST threshold for goods. Which statement about its GST registration is correct?

Rohan Traders must register under GST because its aggregate turnover exceeds the prescribed threshold. Registration liability depends on turnover and the nature of supply, not on being a partnership. Firms are not exempt, and exporting is not a condition for registration.

  1. AIt must register under GST because its turnover exceeds the threshold, and it is a normal taxable personCorrect
  2. BIt need not register because partnership firms are exempt from GST
  3. CIt can register only after obtaining a Shops and Establishment licence from the Union government
  4. DIt must register only if it also exports goods

Explanation

GST registration depends on aggregate turnover and the nature of supply, not on the constitution of the entity. A firm whose turnover crosses the threshold must register. Partnership firms are not exempt, and export is not a condition for registration. Shops and Establishment licences are state-level and not a precondition under GST.

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