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CA Intermediate · Taxation · Registration

Veda Traders of Jaipur supplies only taxable goods within Rajasthan. Its aggregate turnover in the preceding financial year was Rs 38 lakh, and it has no inter-State supplies. Rajasthan is a general category State, not a special category State. Under the CGST Act, 2017, which statement about its registration liability for goods is correct?

Veda Traders is not liable to register on turnover grounds, because a supplier exclusively of goods making intra-State supplies in a general category State must register only if aggregate turnover exceeds Rs 40 lakh, and its turnover is Rs 38 lakh.

  1. AIt must register because turnover exceeds Rs 20 lakh
  2. BIt is not liable to register on turnover, because the threshold for intra-State supply of goods is Rs 40 lakhCorrect
  3. CIt must register because every supplier of goods must register
  4. DIt must register because the threshold for goods is Rs 10 lakh

Explanation

For a supplier exclusively of goods in a general category State, the registration threshold is aggregate turnover exceeding Rs 40 lakh in a financial year. Rs 38 lakh is below it and there is no inter-State supply or other compulsory trigger. The Rs 20 lakh limit applies to service suppliers, so option A applies the wrong limit.

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