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CA Intermediate · Taxation · Registration

Sunrise Traders, a proprietorship in Pune, supplies only taxable goods within Maharashtra. Its aggregate turnover in the previous financial year was Rs 38 lakh. For such a supplier of goods only, within a normal category state, what is the position on compulsory registration on the basis of turnover?

Registration is not compulsory. A supplier of goods only, making intra-State supplies in a normal category state, must register only when aggregate turnover exceeds Rs 40 lakh. Rs 38 lakh is below that limit. The Rs 20 lakh limit applies to service providers, not to this goods supplier.

  1. ARegistration is compulsory because the threshold is Rs 20 lakh
  2. BRegistration is not compulsory because the threshold for suppliers of goods only is Rs 40 lakhCorrect
  3. CRegistration is compulsory because the threshold is Rs 10 lakh
  4. DRegistration is not compulsory only if the turnover is below Rs 10 lakh

Explanation

A supplier engaged exclusively in intra-State supply of goods in a normal category state is required to register only if aggregate turnover exceeds Rs 40 lakh. Rs 38 lakh is below this limit, so registration is not compulsory. The Rs 20 lakh limit applies to service providers, so option A is wrong.

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