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CMA Intermediate · Direct and Indirect Taxation · Registration

Under the rule allowing registration to persons with low monthly output tax liability on supplies to registered persons, what is the maximum total output tax liability per month (CGST, SGST/UTGST, IGST and cess together) for the option to be available?

The limit is Rs 2,50,000 per month. The rule permits the simplified electronic registration only where total output tax liability on supplies to registered persons, across central, State or UT, integrated tax and compensation cess, does not exceed two lakh fifty thousand rupees monthly.

  1. ARs 2,50,000Correct
  2. BRs 2,00,000
  3. CRs 25,000
  4. DRs 5,00,000

Explanation

The rule says a person whose total output tax liability on supplies to registered persons, on account of central tax, State or UT tax, integrated tax and compensation cess, does not exceed two lakh and fifty thousand rupees per month has the option. Rs 2,00,000 and Rs 5,00,000 are wrong figures, and Rs 25,000 is a tenfold misreading.

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