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CA Intermediate · Taxation · Registration

Sunil Consultants, a Delhi-based proprietor, wants to opt for voluntary registration though its aggregate turnover is well below the threshold and it supplies only taxable services. Which statement is correct?

Sunil Consultants may register voluntarily, and once registered it is treated like any other registered person, so it must charge tax, file returns and follow every provision of the CGST Act. No approval of the GST Council is needed and there is no relaxation from returns.

  1. AIt cannot register since only persons above the threshold are eligible
  2. BIt may register voluntarily, and once registered it must comply with all provisions of the Act as a registered personCorrect
  3. CIt may register voluntarily but is exempt from filing returns until it crosses the threshold
  4. DIt may register voluntarily only after taking approval of the GST Council

Explanation

Section 25(3) allows a person not liable to register to obtain registration voluntarily. Once registered, he is bound by all provisions applicable to a registered person, including returns and tax payment. Return exemption and Council approval do not exist.

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