Skip to content

CA Intermediate · Taxation · Registration

Shree Handlooms, a proprietorship in Jaipur, supplies only taxable goods within Rajasthan. It has no other registration and is not in a special category State. Its aggregate turnover in the preceding financial year was Rs 36 lakh. Which statement about its liability to register under CGST Act, 2017 is correct?

Shree Handlooms is not liable to register. A supplier making only intra-State supplies of taxable goods in a normal category State must register only when aggregate turnover exceeds Rs 40 lakh, and its turnover of Rs 36 lakh is below that limit.

  1. AIt must register, because the goods threshold is Rs 20 lakh
  2. BIt is not liable to register, because the threshold for a supplier of goods only in a normal category State is Rs 40 lakhCorrect
  3. CIt must register, because the threshold is Rs 10 lakh for all suppliers
  4. DIt is not liable to register only if it opts for the composition scheme

Explanation

A supplier engaged exclusively in intra-State supply of goods in a normal category State is liable to register only if aggregate turnover exceeds Rs 40 lakh. Rs 36 lakh is below this limit, so registration is not compulsory. Rs 20 lakh applies to service providers, so the first option is wrong.

Did you get it right without looking?

One question tells you little. A timed set on Registration shows your real accuracy, how long you take and where you lose marks.

Practise RegistrationFree diagnostic mock

More Registration questions