Registration Guide PDF

# 4 Registration ## 4.1 Introduction One of the major sources of revenue for the government is the Tax collected from taxpayer. In order to increase revenue collection to maximum level through taxes, government needs to keep a tap on the existing and potential taxpayers. For this purpose registration is one of the essential requirement for identification of taxpayer in the economy. Under the GST law Registration denotes obtaining a Unique Number from the concerned tax authorities for the purpose of collecting tax on behalf of the government and to avail Input Tax Credit for the taxes on its inward supplies. Chapter VI of the CGST Act contains Section 22 to Section 30 regarding Registration; provisions of registration under CGST Act have been made applicable to IGST Act vide Section 20 of the IGST Act 2017. ## 4.1.1 Registration - Why Is It Necessary? * It will help the taxpayer to be recognised as a supplier of goods and services legally. * The taxpayer after taking registration is by law authorised to collect tax from the person to whom he has sold the goods and pass on the credit of the taxes paid on the goods or services supplied to purchasers or recipients. * The taxpayer can claim input tax credit of the taxes paid and can utilise the same for payment of taxes due on supply of goods or services or both. * Registration will help in seamless flow of input tax credit from suppliers to recipients at the national level. ## 4.1.2 Nature Of Registration * In GST, the registration is State /Union Territory wise and is Permanent Account Number (PAN) based. Supplier has to register in each of such State of Union territory from where he effects supply. * In GST registration, the supplier is allotted a 15 digit Goods and Services Tax Identification Number (GSTIN) also known as Unique Identification Number (UIN). * Registration under GST is not tax specific which means that there is a single registration for all taxes i.e. CGST, SGST/UTGST, IGST and GST compensation cess. ## 4.2 Goods and Services Tax (GST) and Customs Law * A given PAN based legal entity would have ONE GSTIN (GOODS AND SERVICE TAX IDENIFICAION NUMBER) per State, that means a business entity having its branches in multiple States will have to take Separate State wise registration for the branches in different States. * But Within A State, an entity with different branches can have single registration wherein it can declare One Place As Principal Place Of Business (PPoB) and other branches as Additional Place OfBusiness. * Now any taxpayer having multiple place of business in a single state has an option to obtain separate registration for each premise even in a single state. ## 4.1.3 Goods And Services Tax Identification Number (GSTIN) The Goods and Services Tax Identification Number is a Unique Identification Number which each taxpayer will receive once they have registered themselves on the common portal. It is a 15 digit unique code which is based on state code and PAN no of the taxpayer. | Col 1 | Col 2 | Col 3 | Col 4 | Col 5 | Col 6 | Col 7 | Col 8 | Col 9 | Col 10 | Col 11 | Col 12 | Col 13 | Col 14 | Col 15 | | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: | :---: |:---: |:---: |:---: |:---: |:---: |:---: | | 0 State Code 7 for Delhi | A Series | D Series | H Series | P M | Cate- gory | Surn- ame | * | 10 * | 11 * | 4 Numbers | A Check | 3 Z * | 7 Entity Alphabet Check No. of "Z" by default the taxpayer in the state | sum Digit | | | | | | | | | | | | | | | | | ### PAN NUMBER OF THE TAXPAYER 10 DIGIT 1. The first two digits denote the unique state code according to the Census of 2011. Eg: State code of Delhi- 07, Karnataka- 29. 2. The Next 10 characters are the PAN of the Taxpayer. 3. The 13th digit denotes the registration no. of the entity with the government with his corresponding PAN 4. The 14th digit is Z by default to verify the earlier digits with the system. 5. The 15th Digit is a check digit to detect error, it can be a number or alphabet. ## 4.1.4 Persons Liable For Registration: Is Registration Mandatory? **Section 22(1) of the CGST Act 2017** Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees. Provided further that the Government may, at the request of a special category State and on the recommendations of the Council, enhance the aggregate turnover referred to in the first proviso from ten lakh rupees to such amount, not exceeding twenty lakh rupees and subject to such conditions and limitations, as may be so notified.Provided also that the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified. For the purposes of this sub-section, a person shall be considered to be engaged exclusively in the supply of goods even if he is engaged in exempt supply of services provided by way of extending deposits, loans or advances in sofaras the consideration is represented by way of interest or discount. **Section 22(2) of the CGSTAct2017** Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an existing law, shall be liable to be registered under this Act with effect from the appointed day. Appointed day means the date on which the provisions of this Act shall come into force. Therefore, it is 1st July 2017. **Section 22(3) of the CGSTAct2017** Where a business carried on by a taxable person registered under this Act is transferred, whether on account of succession or otherwise, to another person as a going concern, the transferee or the successor, as the case maybe, shall be liable to be registered with effect from the date of such transfer or succession. The date on which such successor becomes liable is the date of transfer of business / date of succession of business **Section 22(4) of the CGSTAct2017** Notwithstanding anything contained in sub-sections (1) and (3) in case of transfer due to sanction of a scheme or an arrangement for amalgamation or demerger of two or more companies because of an order of high court or tribal or for any other reason, the transferee is liable to get registered with effect from the Date on which the Registrar of Companies issue Certificate of Incorporation giving effect to such order of high court or tribunal. **“Explanation –For the purposes of this section,—** (i) The expression “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals; “Aggregate Turnover” is defined under Section 2(6) of the CGST Act 2017, which means the AGGREGATE VALUE of : (a) All taxable supplies [BUT EXCLUDING the value of inward supplies on which tax is payable by a person (i.e. the recipient) on reverse charge basis]; (b) Exempt Supplies; (c) Export of goods OR services OR both; AND (d) Inter-state supplies of persons having the same Permanent Account Number, to be computed on all India basis **BUT EXCLUDES** Central tax, State Tax, Union Territory Tax, Integrated Tax and cess. "Supplier" is defined under Section 2(105) of the CGST Act 2017, shall mean the person supplying the said goods or services or both and shall include an agent acting as such on behalf of such supplier in relation to the goods or services or both supplied. (ii) The supply of goods, after completion of job work, by a registered job worker shall be treated as the supply of goods by the principal referred to in section 143, and the value of such goods shall not be included in the aggregate turnover of the registered job worker; (iii) The expression “special category States” shall mean the States as specified in sub-clause (g) of clause (4) of article 279A of the Constitution.” “except the state of Jammu and Kashmir". #{Inserted vide THE CENTRAL GOODS AND SERVICES TAX (EXTENSION TO JAMMU AND KASHMIR) ACT, 2017}. For registration purpose the definition of Special Category state has been redefined. In the Explanation, in clause (iii), after the words "State of Jammu and Kashmir", the words "and States of Arunachal Pradesh, Assam, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand" shall be inserted.". “Special Category States” under Article 279A(4)(g) of constitution: * Arunachal Pradesh; * Assam; * Manipur; * Jammu and Kashmir; [See authors note] * Nagaland; * Meghalaya; * Mizoram; * Himachal Pradesh; * Sikkim; * Tripura; * Uttarakhand “Special Category States” for the purpose of Registration as per CGST Act * Mizoram; * Tripura; In other words, every supplier (subject to the persons covered under Section 24 of CGST Act, 2017) is exempt from registration if the Aggregate turnover in a financial year is less than or equal to `20,00,000 (or `10,00,000 as the case maybe). As per Section 2(2)(b) of THE CENTRAL GOODS AND SERVICES TAX (EXTENSION TO JAMMU AND KASHMIR) ACT, 2017 “in section 22, in the Explanation, in clause (ii), after the word Constitution, the words “except the State of Jammu and Kashmir” shall be inserted". According to CGST(Extension to Jammu and Kashmir) Act, 2017, the explanation to Section 22 of CGST Act, 2017 stands amended. After amendment the state of Jammu and Kashmir ceases to be a special category state. Hence registration in Jammu and Kashmir will be compulsory for every supplier whose aggregate turnover is more than `20,00,000 in a financial year. **Authors Note:** Although Section 2(2)(b) of CGST (Extension to Jammu and Kashmir) Act, 2017 provides for amendment to Clause (ii) of explanation to Section 22, but the said amendment appropriately fits itself in Clause (iii) of explanation to Section 22. Further under Point 5 of the Statement of Objects and Reasons issued in the CGST (Extension to Jammu and Kashmir) Bill, presented in Lok Sabha provides “to amend clause (iii) ofExplanation to Section 22 ofCGSTAct,so as to exclude the State of Jammu and Kashmirfrom the purview of "Special Category States”. The erstwhile state of Jammu and Kashmir has been reorganized into the union territory of Jammu and Kashmir (with legislature) and Union Territory of Ladhak vide The Jammu and Kashmir Reorganisation Act, 2019. ## 4.1.5 Person Not Liable For Registration [Section 23] According to Section 23 of CGST Act 2017: 1. Section 23(1): The following persons shall not be liable to registration, namely: * (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exemptfrom tax under this Act or under the Integrated Goods and Services Tax Act; * (b) an agriculturist, to the extent of supply ofproduce out of cultivation of land. Section 23(1) states that the following persons are NOT liable to registration: * (a) any person engaged exclusively in the business of supplying goods or services or both that are: * (i) Not Liable to tax; OR * (ii) Wholly exempt from tax under this act or IGST Act * (b) an agriculturist, to the extent of supply of produce out of cultivation of land As per Section 2(7) of the CGST Act 2017 “agriculturist” means an individual or a Hindu Undivided Family who undertakes cultivation of land— * (a) by own labour, or * (b) by the labour of family, or * (c) by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family." 2. Section 23(2): The Government may, on the recommendations of the Council, by notification, specify the category ofpersons who may be exemptedfrom obtaining registration under this Act. According to Notification No. 5/ 2017 (Central Tax) any person who is engaged in makingtaxablesupplies ofgoods orservices or both, on which tax is to be paid by the recipient under Reverse Charge basis with respect to provisions of Section 9(3) of the CGST Act is NOT required to obtain registration. This notification shall come into force on the 1st day of April, 2019. ## 4.6 Goods and Services Tax (GST) and Customs Law Notification No. 10/2019-Central Tax dated: 7th March 2019. According to this notification, under section 23(2), the Central Government, on the recommendations of the Council, hereby specifies that the persons engaged in exclusive supply ofgoods And whose aggregate turnover in the financial year does not exceed forty lakh rupees, are Exempt From Obtaining Registration under CGST Act, EXCEPT, - * (a) Persons required to take compulsory registration under section 24 of the said Act; * (b) Persons engaged in making supplies of the goods, Ice cream and other edible ice, whether or not containing cocoa; Pan masala; or other goods of Chapter 24 i.e. Tobacco and manufactured Tobacco substitutes; Fly ash bricks or fly ash aggregate with 90 per cent. or more fly ash content; Fly ash blocks; Bricks of fossil meals or similar siliceous earths; Building bricks; Earthen or roofing tiles; * (c) Persons engaged in making Intra-State Supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and * (d) Persons exercising option under the provisions of section 25(3), or such registered persons who intend to continue with their registration under the CGST Act. | State other than Special Category States | Special Category states according to Constitution | Other States | | :---------------------------------------------------- | :-------------------------------------------------------- | :---------- | | Other States | Puducherry, Telangana | - | | Threshold Limit | Special Category State (Section 22) | - | | | Manipur, Mizoram, Nagaland, Tripura | | | | J&K, Assam, Himachal Pradesh | Arunachal Pradesh, Meghalaya, Sikkim, Uttarakhand| | Exclusive in Supply of goods | 40 lakh | 20 lakh | | | 10 lakh | 20 lakh | | Supply of goods and services | 20 lakh | 20 lakh | | | 20 lakh | 20 lakh | **Example 1:** Ashok supplies garments and has two offices one in Delhi and other in Patna (Bihar). Determine whether Ashok is liable for registration: | PARTICULARS | AMOUNT (`) | | :-------------------------- | :---------- | | Garments sold from Delhi Office | 12,00,000 | | Garments sold from Patna Office| 10,00,000 | Will your answer be different if: * (a) He sells garments from Delhi Office and stitching services from Patna office. * (b) Value of Garments sold from Patna office is 30,00,000. **Solution:** According to Section 22(1) of CGST Act 2017, a supplier is required to take registration under CGST Act, if his aggregate turnover of goods or services or both exceed `20,00,000 in a financial year. Notification No. 10/2019 specifies that the persons engaged in exclusive supply ofgoods And whose aggregate turnover in thefinancial year does not exceed `40,00,000, are Exempt From Obtaining Registration under CGST Act. In order to determine whether Ashok is liable for registration turnover of both the offices of Delhi and Patna would be taken into account. * (i) The total value of goods is `22,00,000. Although Section 22(1) states aggregate turnover more than `20,00,000 but Section 22(1) read with Section 23(2) and N/N 10/2019, Ashok supplies only goods hence his aggregate turnover limit is `40,00,000. Ashok is not liable for registration. * (ii) If he sells garments from Delhi office and stitching services from Patna office N/N 10/ 2019 does not apply, for this case aggregate turnover will be calculated as per section 22(1), hence Ashok will be liable for registration as his aggregate turnover is 22,00,000 more than 20,00,000. * (iii) Aggregate value will be `42,00,000 which is greater than `40,00,000 hence Ashok is liable for registration. **Example 2:** Ravi Oils in Punjab, is engaged in supplying machine oil as well as petrol. Supply of petrol is not leviable in GST but supply of machine oil is taxable. In order to determine whether Ravi oils is liable for registration, turnover of both taxable and non-taxable supplies would be taken into account and if the same exceeds the threshold limit for registration i.e 40,00,000; Ravi oils is liable for registration. **Example 3:** Mr. Kumar is a supplier of Goods and Services. He has made the following value of supplies for 2022-23: | PARTICULARS | AMOUNT (`) | | :-------------------------- | :---------- | | Goods such as milk, eggs, natural honey who are Nil rated | 2,00,000 | | Supply of services from the premises of registered Job worker | 4,00,000 | | Non Taxable supply of Alcoholic Liquor | 14,00,000 | | Supply of Cream intra-state, taxable @ 5% | 1,00,000 | | Intra-state supply of agriculture produce grown by labour of family member | 3,00,000 | **Solution:** According to Section 22(1) of CGST Act 2017, a supplier is required to take registration under CGST Act, if his aggregate turnover of goods or services or both exceed `20,00,000 in a financial year. He is supplying taxable goods and service as well as exempted supply of goods therefore threshold limit of`20,00,000 is applicable. ## 4.8 Goods and Services Tax (GST) and Customs Law | PARTICULARS | AMOUNT () | | :------------------------------------------------- | :---------- | | Goods such as milk, eggs, natural honey who are Nil rated | 2,00,000 | | Supply of services from the premises of registered Job worker | 4,00,000 | | Non Taxable supply of Alcoholic Liquor | 14,00,000 | | Supply of Cream intra-state, taxable @ 5% | 1,00,000 | | Intra-state supply of agriculture produce grown by labour of family member (Exempt Supply) | 3,00,000 | | **TOTAL** | **24,00,000** | **Aggregate Turnover includes:** * (a) Exempted Supplies i.e. the supply of goods or services or both which attracts Nil rate of tax or are wholly exempt from tax under section 11 of CGST Act or section 6 of IGST Act, and * (b) Non-Taxable Supply [ As per Section 2(78) of CGST Act Non-Taxable supply is defined as supply of goods or services or both which is not leviable to tax under this act or under the IGST act.] Section 9(1) of the CGST/SGST act, Section 7(1) of the UTGST act and Section 5(1) of the IGST act all exclude alcoholic liquor for human consumption from the Levy and charge of GST. On a combined reading of the charging sections with definition of non-taxable supply and exempted supply, it is clear that alcoholic liquor for human consumption forms part of the exempted supply and hence a part of aggregate turnover for the purpose of registration. Even though the taxable supply is `1,00,000 and rest is non-taxable or exempted supply, Mr. Kumar is still liable to get registration because * (a) Aggregate Turnover includes Exempt, Taxable, Non-taxable Supply and * (b) An agriculturist is not liable to take registration to the extent of supply of produce out of cultivation of land (Section 23(1) of CGST Act). For aggregate turnover, intra-state supply of agriculture produce will be excluded. **Example 4:** Rakesh is a supplier in Kerala. He provides the following information: | PARTICULARS | AMOUNT () | | :--------------------------------------------- | :---------- | | Value of taxable goods supplied in Kerala | 8,00,000 | | Value of goods exempted from tax | 5,00,000 | | Value of service of renting an immovable property | 9,00,000 | Is Rakesh required to register? **Solution:** According to Section 22(1) of CGST Act 2017, a supplier is required to take registration under CGST Act, if his aggregate turnover of goods or services or both exceed `20,00,000 in a financial year. | PARTICULARS | AMOUNT () | | :--------------------------------------------- | :---------- | | Value of taxable goods supplied in Kerala | 8,00,000 | | Value of goods exempted from tax | 5,00,000 | | Value of service of renting an immovable property | 9,00,000 | | **TOTAL** | **22,00,000** | Even though the taxable goods and services is `17,00,000 (8,00,000 + 9,00,000) yet Rakesh is required to get himself registered under CGST as the Aggregate Turnover includes taxable and exempted goods and services and his aggregate turnover is `22,00,000 which is more than `20,00,000. ## 4.10 Goods and Services Tax (GST) and Customs Law **Example 5:** X Ltd. which is based in Gujarat, made the following value of supplies for 2022-2023: | PARTICULARS | AMOUNT () | | :------------------------------------------------- | :---------- | | 1. Supply of Goods | 5,00,000 | | 2. Supply of exempted goods | 12,00,000 | | 3. Supply of goods under Reverse Charge | 20,00,000 | | 4. Supply of Non-taxable goods | 50,000 | | 5. Inter-state supply | 1,10,000 | | **TOTAL** | **18,60,000** | Answer the following questions: * (i) Calculate the aggregate turnover of X Ltd. * (ii) Is X Ltd. liable for registration under GST and why? * (iii) Is X ltd. liable for registration if operating in Tripura and why? * (iv) Is X ltd. liable to registration if operating in Sikkim and why? **Solution:** According to Section 22(1) of CGST Act 2017, a supplier is required to take registration under CGST Act, if his aggregate turnover of goods or services or both exceed `20,00,000 in a financial year. Aggregate turnover includes aggregate value of all taxable supplies (except supply under reverse charge), exempted supplies, inter-state supplies and export of goods or services. | PARTICULARS | AMOUNT () | | :------------------------------------------------- | :---------- | | Supply of Goods | 5,00,000 | | Supply of exempted goods | 12,00,000 | | Supply of goods under Reverse Charge | 20,00,000 | | Supply of Non-taxable goods | 50,000 | | Inter-state supply | 1,10,000 | | **TOTAL** | **18,60,000** | * (i) The aggregate turnover of X Ltd. calculated above is `18,60,000. * (ii) No, X. Ltd. is not liable to registration under GST as his aggregate turnover is less than `20,00,000 and he is based in Gujarat which is not a Special Category State. But since he is supplying Inter-state goods and services both, Notification No. 10/2017 under Section 24(1) does not hold (refer heading 4.1.6 for details) and he becomes liable for Compulsory Registration under section 24(1). Hence X is liable for registration. *(Supply of goods under Reverse Charge is assumed to be inward supply of goods) * (iii) Yes, he will be liable to registration if he is based in Tripura, as Tripura comes under Special Category State for the purpose of registration, and threshold limit of registration in Special Category State is `10,00,000 and his turnover is `18,60,000 which is more than `10,00,000. Section 23(2) is not applicable on X due to Inter-state supply and hence limit of `20,00,000 on special category state does not hold. * (iv) As per article 279A(4)(g) of constitution Sikkim comes under "Special Category States" but for the purpose of registration as amended by CGST Amendment Act, 2018, for the purpose of registration Sikkim has been excluded from being a Special Category State and hence, he shall not be liable to registration as his aggregate turnover is less than `20,00,000. ## 4.11 Goods and Services Tax (GST) and Customs Law **Example 6:** XYZ Ltd. Pune makes the following supplies during year 2019: | S.No | Particulars | Amount (`) | | :---- | :--------------------------------------------- | :---------- | | 1. | Supply of Taxable Goods | 5,00,000 | | 2. | Supply of Exempt Goods | 2,00,000 | | 3. | Inter-State Supply of Goods | 3,00,000 | | 4. | Export of Goods | 5,00,000 | | 5. | Outward supply under Reverse Charge | 4,00,000 | | 6. | Inward Supply under Reverse Charge | 5,00,000 | | | **Aggregate Turnover** | **19,00,000** | * (i) Calculate the aggregate turnover for the year 2019. * (ii) Is the company liable to register under section 22 of GST Act 2017? Answer with reason. * (iii) Will it make a difference to the registration requirement if company is in State of Jammu & Kashmir? * (iv) Is the company otherwise liable to register and why? [B.Com (H),2019] **Solution:** * (i) Aggregate Turnover is `19,00,000. * (ii) No, XYZ Ltd. is not liable to registration under GST as his aggregate turnover is less than `20,00,000 and it is based in Pune which is not a Special Category State. But since it is supplying Inter-state goods and services both, Notification No. 10/2017 under Section 24(1) does not hold (refer heading 4.1.6 for details) and he becomes liable for Compulsory Registration under section 24(1). Hence X is liable for registration. * (iii) No, it will not make any difference as Jammu and Kashmir is not a Special Category state for Section 22. * (iv) The company is liable for registration under section 24(1) Compulsory registration, because it makes Inter-State supply also. ## 4.12 Goods and Services Tax (GST) and Customs Law **Example 7:** Decide giving reason whether registration under GST is required or not in the following cases: * (a) Mr. P, a qualified Chartered Accountant based in Manipur is employed as Audit head of ABC Firm, drawing salary of `50,000 per month. He owns a house which is let out for residential purposes at a monthly rent of `1,50,000. He also gives part time tax consultancy and earns `5,00,000 per annum. * (b) Mr. X is a retired person earning pension of `4,20,000 per annum. He owns two buses engaged in providing transportation services to local schools for transportation of faculty, staff and students for which he charges `2,00,000 annually per bus. He has fixed deposits in banks earning annual interest of`10,60,000. **Solution:** * (a) Aggregate Turnover of Mr. P | Particulars | - | | :------------------------------------------------- | :------------- | | Renting of Residential House (Exempt Service) (1,50,000×12) | 18,00,000 | | Salary of CA for work done is not treated as “Supply" | - | | Tax Consultancy Service (Taxable Supply of Service) | 5,00,000 | | **Aggregate Turnover** | **23,00,000** | [B.Com (H),2019] Since he is based in Manipur which is a Special Category State under Section 22(1), he is liable for registration if his aggregate turnover exceeds `10,00,000. Since his aggregate turnover is `23,00,000 which is more than `10,00,000 Mr. P is liable to register under the GST Act. * (b) Aggregate Turnover of Mr. X | Particulars | - | | :------------------------------------------------- | :------------- | | Interest on deposit (Exempt Supply) | 10,60,000 | | Pension for work done is not treated as "Supply" | - | | Bus Transport Service (Taxable Supply)(2×2,00,000) | 4,00,000 | | **Aggregate Turnover** | **14,60,000** | Since his aggregate turnover is less than `20,00,000 so under Section 22(1), he is not liable for registration. ## 4.13 Goods and Services Tax (GST) and Customs Law **Example 8:** ABC Ltd. made the following supplies during 2017-18. The given values are exclusive of GST, wherever applicable. | S.No | Particulars | Amount (`) | | :---- | :--------------------------------------------- | :---------- | | 1. | Outward supply of goods | 6,00,000 | | 2. | Supply of goods from registered job worker premises | 4,00,000 | | 3. | Supply of Exempted goods | 8,00,000 | | 4. | Supply of non-taxable goods | 1,50,000 | **Inward supply of goods** | 1. | Supply of goods under Reverse Charge | 2,00,000 | Calculate the amount of aggregate turnover and comment whether the company is required to obtain registration on the basis of aggregate turnover. [B.Com(P),2019] **Solution:** | S.No | Particulars | Amount (`) | | :---- | :--------------------------------------------- | :---------- | | 1. | Outward supply of goods | 6,00,000 | | 2. | Supply of goods from registered job worker premises | 4,00,000 | | 3. | Supply of Exempted goods | 8,00,000 | | 4. | Supply of non-taxable goods | 1,50,000 | | | **Aggregate Turnover** | **19,50,000** | The total value of goods is `19,50,000. Although Section 22(1) states aggregate turnover more than `20,00,000 is required to take registration but Section 22(1) read with Section 23(2) and N/N 10/2019, ABC Ltd. supplies only goods hence his aggregate turnover limit is `40,00,000. But since ABC Ltd. is getting inward supply under Reverse Charge he becomes Liable for Compulsory registration under section 24(3). Therefore, ABC Ltd. is liable for registration. ## 4.14 Goods and Services Tax (GST) and Customs Law **Example 9:** Discuss the following cases: * (a) Registration requirement under GST Laws for X, a supplier in Maharashtra, engaged in supply of onion in Maharashtra (as well as outside Maharashtra). His turnover has exceeded the threshold limit in Nov 2023. * (b) Registration requirement for Ratan Traders of Delhi engaged in Intra-state supply of ladies garments, who are planning to participate in an exhibition scheduled for next month in Surat, Gujrat. * (c) Registration requirement of Y of Mizoram engaged in supply of goods in Mizoram with an aggregate turnover of 15 lakh. [B.Com(H),2020] **Solution:** 1. Xis an agriculturist as he is engaged in supply of onion in Maharashtra, so he is Exempted from registration under section

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