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CA Intermediate · Taxation · Registration

Sundaram Traders, a proprietorship in Madurai, supplies only taxable goods within Tamil Nadu. Its aggregate turnover in the preceding financial year was Rs 38 lakh, and it has no inter-State supplies and no other registration. Is Sundaram Traders liable to register under GST?

Sundaram Traders need not register. A supplier of only goods within a normal category State becomes liable only when aggregate turnover exceeds Rs 40 lakh, and its Rs 38 lakh turnover is below that limit, with no inter-State supply or other compulsory trigger present.

  1. ANo, because the threshold limit for a goods supplier in a normal category State is Rs 40 lakhCorrect
  2. BYes, because the threshold limit for goods is Rs 20 lakh
  3. CYes, because every proprietor must register regardless of turnover
  4. DNo, because the threshold limit for goods is Rs 1.5 crore

Explanation

For a supplier exclusively of goods in a normal category State, the threshold for registration is aggregate turnover exceeding Rs 40 lakh. Rs 38 lakh is below this, and there is no inter-State supply or other compulsory trigger. The Rs 20 lakh limit applies to services suppliers, so option 2 mixes up the limit.

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