GST Registration Basics

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Questions and Answers

Which statement about aggregate turnover for ABC Ltd is correct?

ABC Ltd has an aggregate turnover of $19,50,000.

ABC Ltd is required to register for turnover exceeding $20,00,000.

ABC Ltd's aggregate turnover limit is $40,00,000 due to the nature of its goods. (correct)

ABC Ltd is exempt from registration because its turnover is below $20,00,000.

What condition makes ABC Ltd liable for compulsory registration under section 24(3)?

The nature of goods supplied exceeds the threshold limit.

ABC Ltd's aggregate turnover is below $40,00,000.

ABC Ltd receives inward supply under Reverse Charge. (correct)

ABC Ltd engages in inter-state supply of goods.

How is X's registration requirement affected by his engagement in supplying onions?

X is only required to register if he sells outside Maharashtra.

X is required to register because his supply exceeds $20,00,000.

X must register due to the inter-state nature of his supply.

X is exempt from registration as he is classified as an agriculturist. (correct)

What registration requirement applies to Ratan Traders participating in the exhibition in Surat?

Ratan Traders must register because they are engaging in an inter-state supply. Signup and view all the answers

What is the threshold limit for mandatory registration under GST for Y of Mizoram?

Y is exempt from registration as his aggregate turnover is $15,00,000. Signup and view all the answers

What is the maximum aggregate turnover limit for mandatory registration under the CGST Act for suppliers in special category States?

Ten lakh rupees Signup and view all the answers

Which digit of the GSTIN is used to verify the earlier digits with the system?

14th digit Signup and view all the answers

An entity with multiple branches in a single state has the option to obtain how many registrations?

Separate registration for each branch Signup and view all the answers

What is the significance of the first two digits in the PAN number?

Represents the unique state code Signup and view all the answers

What is the total length of the Goods and Services Tax Identification Number (GSTIN)?

15 digits Signup and view all the answers

Which element of the GSTIN is derived from the PAN of the taxpayer?

Last four digits Signup and view all the answers

What is the purpose of the 15th digit in the GSTIN?

Acts as a check digit for error detection Signup and view all the answers

Under the CGST Act, which type of suppliers are liable for registration?

Suppliers with aggregate turnover exceeding specified limits Signup and view all the answers

What is the threshold limit for exclusive supply of goods in other states?

40 lakh Signup and view all the answers

Which of the following states is classified as a Special Category State?

Assam Signup and view all the answers

What happens to Ashok’s registration requirement if he sells garments worth 30,00,000 from Patna?

He is liable for registration. Signup and view all the answers

In which scenario would Ashok not be liable for registration?

Garments worth 12,00,000 sold from Delhi office only. Signup and view all the answers

What is the common threshold limit for supply of goods and services in Special Category States?

20 lakh Signup and view all the answers

If Ashok sold garments worth 12,00,000 from Delhi and stitching services worth 10,00,000 from Patna, what would his registration requirement be?

Liable for registration. Signup and view all the answers

Which of the following is NOT a Special Category State according to the provided content?

Punjab Signup and view all the answers

Which is a correct classification of threshold limits presented?

Different thresholds for Special Category States and other states. Signup and view all the answers

What is the maximum amount the Government can enhance the aggregate turnover to for a special category State?

Twenty lakh rupees Signup and view all the answers

Who must be registered under the CGST Act with effect from the appointed day?

Persons registered or licensed under existing law on the day preceding the appointed day Signup and view all the answers

When does the successor become liable for registration if a business is transferred?

On the date of transfer or succession Signup and view all the answers

In cases of amalgamation or demerger, when is the transferee required to register?

When the Registrar of Companies issues a Certificate of Incorporation Signup and view all the answers

Under what condition can the aggregate turnover be increased from twenty lakh rupees to a higher limit?

If the supplier is engaged exclusively in the supply of goods Signup and view all the answers

What does the appointed day signify in relation to the CGST Act?

The date on which the provisions of the Act come into force Signup and view all the answers

Which statement about exempt supplies is true regarding exclusive engagement in the supply of goods?

Engaging in exempt supply of services allows for consideration through interest or discount Signup and view all the answers

What is the minimum turnover for a special category State to trigger an enhancement request?

Ten lakh rupees Signup and view all the answers

What is the aggregate turnover for XYZ Ltd. in the year 2019?

19,00,000 Signup and view all the answers

Is XYZ Ltd. required to register under section 22 of the GST Act 2017?

No, because its turnover is less than `20,00,000. Signup and view all the answers

What components are included in the definition of 'aggregate turnover' under the CGST Act 2017?

Export of goods or services and all exempt supplies Signup and view all the answers

If XYZ Ltd. were based in Jammu & Kashmir, would it change the registration requirement under GST?

No, it remains the same as Jammu & Kashmir is not a Special Category State. Signup and view all the answers

Why is XYZ Ltd. clinically required to register under section 24(1) of the GST Act?

Because it is engaged in inter-state supplies. Signup and view all the answers

Which types of tax are excluded from the calculation of 'aggregate turnover'?

Cess, Central tax, State tax, and Union Territory tax Signup and view all the answers

In the example of Mr. P, what factors will determine if he requires GST registration?

His total income from salary, rental, and consultancy. Signup and view all the answers

Which of the following is true regarding the supply of goods by a registered job worker?

It is considered as supply by the principal for accounting purposes Signup and view all the answers

Which component does NOT count towards Mr. P's aggregate turnover for GST?

His salary of `50,000 per month. Signup and view all the answers

Which states are classified as 'special category states' for the purpose of registration under the CGST Act?

Jammu & Kashmir and the states listed in Article 279A(4)(g) Signup and view all the answers

Why would Mr. X need to consider GST registration despite his pension income?

Due to the income from transporting services. Signup and view all the answers

What is the annual aggregate turnover threshold below which a supplier is exempt from registration?

<code>20,00,000 or </code>10,00,000 based on the type of supply Signup and view all the answers

What will NOT affect the taxable turnover of a company under GST?

Government grants received. Signup and view all the answers

Which of the following is NOT a criteria for defining 'aggregate turnover'?

Value of goods supplied under job work Signup and view all the answers

How is 'aggregate turnover' calculated for different suppliers with the same Permanent Account Number?

On an all-India basis Signup and view all the answers

Which of the following best describes a 'supplier' under the CGST Act?

An agent acting for the supplier with authorization Signup and view all the answers

Study Notes

Registration

Registration is essential for taxpayers to be recognized as legitimate suppliers of goods and services.
Registration allows taxpayers to collect taxes from customers and claim input tax credit.
It facilitates the seamless flow of input tax credit between suppliers and recipients at a national level.
Registration under GST is tied to the state and permanent account number (PAN).
A unique 15-digit Goods and Services Tax Identification Number (GSTIN) is assigned to each registered taxpayer.
This number is not tax-specific.
One registration covers all GST types; central, state, union territory, and integrated taxes.

Nature of Registration

GST registration is state-specific based on a supplier's location.
A taxpayer must register in each state where they provide supplies.
A 15-digit GST Identification Number (GSTIN) is assigned to each registered entity.
The GSTIN is not tax-specific, covering all tax types.

Persons Liable for Registration

Taxpayers whose aggregate turnover exceeds ₹20 lakhs in a financial year are required to register for GST, in states other than special category ones.
Special category states have a lower threshold of ₹10 lakhs.
Exemptions apply to persons who supply tax-exempt or non-taxable goods/services, or those with annual turnover below specified limits.
Agri-businesses are exempt only to the extent of produce from land cultivation,
The government may, on the recommendation of the Council, exempt specific categories, based on aggregate turnover.

Persons Not Liable for Registration

Individuals or entities exclusively supplying exempt or non-taxable goods and services under the GST Act are not required to register.
This includes those who are solely engaged in agriculture.

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Description

This quiz covers the essential aspects of GST registration, including the importance of a GSTIN, the state-specific nature of registration, and the overall framework for taxpayers. Test your knowledge on the responsibilities and processes involved in GST registration to enhance your understanding of taxation.