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[Topic-(I)- Basic Concepts]

Question I (1): What are the advantage of taking registration in GST? [ICAI Material]
Answer: Registration will confer following advantages to the business:
 Legally recognized as supplier of goods or services.
 Proper accounting of taxes paid on the input goods or services which can be utilized for
payment of GST due on supply of goods or services or both by the business.
 Legally authorized to collect tax from his purchasers and pass on the credit of the taxes
paid on the goods or services supplied to purchasers or recipients.
 Become eligible to avail various other benefits and privileges rendered under the GST laws.

Question I (2): Can a person without GST registration collect GST and claim ITC? [ICAI
Material]
Answer: No, a person without GST registration can neither collect GST from his customers nor
can claim any input tax credit of GST paid by him.

[Topic-(II)- Aggregate Turnover]


Question II (1): P Ltd, a registered person provided following information for the month of
October, 20XX:
Particulars Amount (`)

Intra-State outward supply 8,00,000

Inter-State exempt outward supply 4,00,000


Turnover of exported goods 20,00,000
Payment of IGST 1,20,000
Payment of CGST and SGST 45,000 each
Payment of custom duty on export 40,000
Payment made for availing GTA services 3,00,000

GST is payable on Reverse Charge for GTA services.


Explain the meaning of aggregate turnover u/s 2(6) of the CGST Act and compute the
aggregate turnover of P Ltd. for the month of October, 20XX. All amounts are exclusive of
GST.
Answer: Relevant Provisions: - The term aggregate turnover means the aggregate value of:
(i) all taxable supplies
(ii) exempt supplies,
(iii) exports of goods or service s or both and

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(iv) inter-State supplies of persons having the same Permanent Account Number, to be
computed on all India basis but excluding
(a) central tax, State tax, Union territory tax, integrated tax and cess.
(b) the value of inward supplies on which tax is payable by a person on reverse charge
basis.
Analysis & Conclusion: -
Computation of aggregate turnover of P Ltd. for the month of October, 20XX
Particulars Amount (`)
In terms of the definition of the aggregate turnover given above, the
aggregate turnover of P Ltd. has been computed as follows:
Intra-State outward supply 8,00,000
Inter-State exempt outward supply 4,00,000
Turnover of exported goods 20,00,000
Payment of IGST Nil
Payment of CGST and SGST Nil
Payment of customs duty on export 40,000
Payment made under reverse charge for availing GTA services Nil
Aggregate turnover 32,40,000

Question II (2): Mr. X of DL has effected following supplies within the state of Delhi. Determine
whether he is required to obtain registration under GST or not:
(1) Intra state supply of goods wholly exempt from GST u/s 11 of CGST Act, 2017 5,00,000
(2) Intra state supply of goods chargeable with GST @ 5% 7,00,000
(3) Intra state transfer of goods to job worker 16,00,000
(4) Inter state supply of services 5,00,000
——————
Total value 33,00,000
——————
Answer: Computation of Aggregate value of taxable supplies:
(1) Intra state supply of goods wholly exempt from GST u/s 11 of CGST Act, 2017 5,00,000
(2) Intra state supply of goods chargeable with GST @ 5% 7,00,000
(3) Intra state transfer of goods to job worker NIL
(4) Inter state supply of services 5,00,000
——————
Total value of taxable supplies 17,00,000
——————

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Since value of taxable supplies is less than 20,00,000 so Mr. X is not required to obtain
registration under GST.
Working Notes:
(1) Intra state transfer of goods to job worker is not a supply.
(2) Intra state supply of goods which are wholly exempt from GST u/s 11 and those which
are chargeable to GST, both are included for determination of aggregate turnover.

Question II (3): From the following information you are required to determine whether ABC
ltd incorporated in Rajasthan is liable to be registered under GST law if the company has
effected following supplies within the state of Rajasthan:
Particulars `
(1) Intra state supply of goods chargeable to GST @ 12% 5,25,000
(2) Intra state supply of goods chargeable with NIL rate 8,00,000
(3) Intra state supply of goods which are wholly exempt from GST u/s 11 of 6,25,000
CGST Act, 2017
Total value of supplies 19,50,000
Answer: Computation of aggregate turnover
Particulars Amount `
(1) Intra state supply of goods chargeable to GST @ 12% 6,25,000
(2) Intra state supply of goods chargeable with NIL rate 8,00,000
(3) Intra state supply of goods which are wholly exempt from GST u/s 11 of 7,25,000
CGST Act, 2017
Total value of taxable supplies 19,50,000

Since aggregate turnover of ABC ltd is less than 40,00,000, so, registration is not required.

Question II (4): Presume in the above case, ABC Ltd was incorporated in MANIPUR. Will the
registration now be required?
Answer: Since MANIPUR is a special category state, so registration is required since value of
taxable supplies exceeds 10,00,000.

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[Topic-(III)- Section 22]
Question III (1): Q Ltd. is engaged exclusively in supply of taxable goods from the following
states. The particulars of intra-state supplies for the month of May 20XX are as follows:
State Turnover `
Madhya Pradesh 5,00,000
Gujarat 14,00,000
Tripura 12,00,000

(i) Q Ltd. seeks to know whether it is liable for registration under GST. Give your
explanation.
(ii) Will your answer be different if Q Ltd. supplies only petrol & diesel from Tripura
instead of any other taxable goods? [Dec 2021, 4 Marks]
Answer: Relevant Provision: Every person engaged in making a taxable supply is required to
obtain registration if his aggregate turnover exceeds `20 lakh in a financial year. An enhanced
threshold limit for registration of ` 40 lakh is available to persons engaged exclusively in intra-
State supply of goods in specified States. However, the applicable threshold limit for registration
gets reduced to ` 10 lakh in case a person is engaged in making supply from a specified Special
Category State provided such supply is a taxable supply.
Analysis & Conclusion:
(i) Since Q Ltd. is making supply of taxable goods from Tripura – a specified Special Category
State, the applicable threshold limit will get reduced to `10 lakh.
Thus, it is liable to be registered under GST as its aggregate turnover [` 31 lakh] exceeds the
said threshold limit.
(ii) In case Q Ltd. is making supply of non-taxable goods [petrol and diesel] from Tripura,
the applicable threshold limit will not be reduced to `10 lakh; enhanced threshold limit of `40
lakh will be applicable.
Thus, it is not liable to be registered under GST as its aggregate turnover [` 31 lakh] does not
exceed the said threshold limit.

Question III (2): Answer the following-


(i) There is a dairy farm selling milk and milk products in Delhi. The turnover of his dairy
farm is as below:
Milk (Exempted): ` 19,90,000
Butter (Taxable): ` 50,000
What is the registration liability under GST for the above mentioned person assuming
he has same PAN?

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(ii) Amit, a taxable person, is operating in Tamil Nādu, Punjab and West Bengal, with the
same PAN. Can he operate with a single registration in West Bengal?
Answer:
(i) Relevant Provisions: -Every supplier becomes liable to registration if his aggregate
turnover in a financial year exceeds ` 20 lakh/` 40 lakh in a State/UT [` 10 lakh in
case of 4 Special Category States].
Further, aggregate turnover, means the aggregate value of all taxable supplies as well as
exempt supplies.
Analysis & Conclusion: -Thus, in the given case, aggregate turnover:
= ` 19,90,000 + ` 50,000
= ` 20,40,000
Since aggregate turnover of the dairy farm in Delhi does not exceeds ` 40 lakh hence it
is not liable to get registered.
(ii) No.
Relevant Provisions: - Every person who is liable to take a registration will have to
get registered separately for each of the States where he has a business operation
and is liable to pay GST.
Analysis & Conclusion: - Amit cannot operate with a single registration in West Bengal
if he is making taxable supplies from Tamil Nādu and Punjab also.
However, if he is not making taxable supplies from Tamil Nādu and Punjab, he can operate
with a single registration in West Bengal.

Question III (3): Examine the following cases and explain with reasons whether the supplier
of goods is liable to get registered in GST:
(i) Krishna of Himachal Pradesh is exclusively engaged in intra-State taxable supply of
readymade suits. His turnover in the current financial year from Himachal Pradesh
showroom is ` 25 lakh. He has two more showrooms one in Manipur & another in Sikkim
with a turnover of ` 15 lakh and ` 18 lakh respectively in the current financial year.
(ii) Ankit of Telangana is exclusively engaged in intra-State taxable supply of footwears.
His aggregate turnover in the current financial year is ` 25 lakh:
(iii) Aakash of Uttar Pradesh is exclusively engaged in intra -State supply of pan masala.
His aggregate turnover in the current financial year is ` 30 lakh. [July 2021 Marks 5]
Answer: Relevant Provisions: - Every person engaged in making a taxable supply is required to
obtain registration if his aggregate turnover exceeds ` 20 lakh in a financial year. An enhanced
threshold limit for registration of ` 40 lakh is available to persons engaged exclusively in intra-
State supply of goods in specified States.

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(i) Relevant Provisions: - The applicable threshold limit for registration gets reduced to ` 10
lakh in case a person is engaged in making taxable supply from a Special Category State.
Since Krishna is making taxable supply from Manipur – a Special Category State, the applicable
threshold limit will get reduced to ` 10 lakh. Thus, it is liable to be registered under GST as its
aggregate turnover exceeds the said threshold limit.
(ii) Analysis & Conclusion: - Since Ankit is exclusively engaged in intra-State supply of goods
in Telangana, which is not a specified State for enhanced threshold limit, the applicable
threshold limit for registration is ` 20 lakh.
Thus, Ankit is liable to be registered under GST as its aggregate turnover exceeds the said
threshold limit.
(iii) Relevant Provisions: - Though the enhanced threshold limit for registration of ` 40 lakh is
available to Uttar Pradesh, the same will not be applicable if the person is engaged in supply of
tobacco / Ice cream /Pan Masala, Fly ash bricks/ aggregates / blocks.
Analysis & Conclusion: - In view of the same, the applicable threshold limit for Aakash is `
20 lakh. Thus, it is liable to be registered under GST as its aggregate turnover exceeds the said
threshold limit.

Question III (4): Examine whether the supplier is liable to get registered in the following
independent cases: —
(i) Raghav of Assam is exclusively engaged in intra-State taxable supply of readymade
garments. His turnover in the current financial year (FY) from Assam showroom is
` 33 lakh. He has another showroom in Tripura with a turnover of ` 11 lakh in the
current FY.
(ii) Pulkit of Panjim, Goa is exclusively engaged in intra-State taxable supply of shoes.
His aggregate turnover in the current financial year is ` 22 lakh.
(iii) Harshit of Himachal Pradesh is exclusively engaged in intra-State supply of pan
masala. His aggregate turnover in the current financial year is ` 24 lakh.
(iv) Ankit of Assam is exclusively engaged in intra-State supply of taxable services. His
aggregate turnover in the current financial year is ` 25 lakh.
(v) Sanchit of Assam is engaged in intra-State supply of both taxable goods and
services. His aggregate turnover in the current financial year is ` 30 lakh.
Answer: Relevant Provisions: As per section 22, read with N/N 10/2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold
limit for a person making exclusive intra - State taxable supplies of goods is as under: —
(a) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,

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Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India except persons engaged in making supplies of tobacco / Ice
cream /Pan Masala, Fly ash bricks/ aggregates / blocks.
As per section 22 read with N/N 10/2019, a supplier is liable to be registered in the State/Union
territory from where he makes a taxable supply of goods and/or services, if his aggregate turnover
in a financial year exceeds the threshold limit. The threshold limit for a person making exclusive
taxable supply of services or supply of both goods and services is as under:-
(a) ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the rest of India.
Analysis & Conclusions: In the light of the afore-mentioned provisions, the answer to the
independent cases is as under:
(i) Raghav is eligible for higher threshold limit of turnover for registration, i.e. ` 40 lakh as
he is exclusively engaged in intra-State supply of goods. However, since Raghav is engaged
in supplying readymade garments from a Special Category State i.e. Tripura, the threshold
limit gets reduced to ` 10 lakh. Thus, Raghav is liable to get registered under GST as his
turnover exceeds `10 lakh. Further, Raghav is liable to get registered under GST in both
Assam and Tripura as he is making taxable supplies from both the States.
(ii) The applicable threshold limit for registration for Pulkit in the given case is ` 40 lakh as
he is exclusively engaged in intra-State taxable supply of goods in Goa. Thus, he is not
liable to get registered under GST as his turnover is less than the threshold limit.
(iii) Harshit being exclusively engaged in supply of pan masala is not eligible for higher
threshold limit of `40 lakh. The applicable threshold limit for registration in this case is
`20 lakh. Thus, Harshit is liable to get registered under GST.
(iv) Though Ankit is dealing in Assam, he is not entitled for higher threshold limit for
registration as the same is applicable only in case of exclusive supply of goods while he
is exclusively engaged in providing services. Thus, the applicable threshold limit for
registration in this case is ` 20 lakh and hence, Ankit is liable to get registered under
GST.
(v) Since Sanchit is engaged in supply of both taxable goods and services, the applicable
threshold limit for registration in his case is ` 20 lakh. Thus, Sanchit is liable to get
registered under GST as his turnover is more than the threshold limit.

Question III (5): Examine whether the liability to register compulsorily under section 24 of
the CGST Act, 2017 arises in each of the independent cases mentioned below:
(1) Heera, a supplier in Haryana, is exclusively engaged in supply of potatoes produced
out of cultivation of his own land, within Haryana and also outside Haryana.

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(2) Aanya of Telangana is exclusively engaged in intra-State supply of toys. Its
aggregate turnover in the current financial year is ` 22 lakh.
Answer: (1) Relevant Provisions: Section 24 provides that persons making any inter-State
taxable supply of goods are required to obtain registration compulsorily under GST laws
irrespective of the quantum of aggregate turnover.
However, as per section 23, an agriculturist, to the extent of supply of produce out of
cultivation of land, is not liable to registration.
Analysis & Conclusion: Heera is exclusively engaged in cultivation and supply of potatoes. Thus,
he is not liable to registration irrespective of the fact that he is engaged in making inter-State
supply of goods. Further, Heera will not be liable to registration, in the given case, even if his
turnover exceeds the threshold limit.
(2) Relevant Provisions: As per section 22, read with N/N 10/2019, a supplier is liable to be
registered in the State/Union territory from where he makes a taxable supply of goods
and/or services, if his aggregate turnover in a financial year exceeds the threshold limit.
The threshold limit for a person making exclusive intra-State taxable supplies of goods is as
under:-
(a) ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the States, namely, States of Arunachal Pradesh, Meghalaya, Puducherry,
Sikkim, Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India except persons engaged in making supplies of tobacco / Ice
cream /Pan Masala, Fly ash bricks/ aggregates / blocks.

Analysis & Conclusion: Since Aanya is making taxable supplies from Telangana, she will not be
eligible for higher threshold limit available in case of exclusive supply of goods. The applicable
threshold limit for registration for Aanya in the given case is ` 20 lakh. Thus, she is liable to
get registered under GST.
Question III (6): Rajesh Dynamics, having its head office in Chennai, Tamil Nadu carries on
the following activities with respective turnovers in a financial year:
Particulars `
Supply of petrol at Chennai, Tamil Nadu 18,00,000
Value of inward supplies on which tax is payable on reverse charge 9,00,000
basis
Supply of transformer oil at Chennai, Tamil Nadu 2,00,000
Value of branch transfer from Chennai, Tamil Nadu to Bengaluru, 1,50,000
Karnataka without payment of consideration
Value of taxable supplies at Manipur branch 11,50,000

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It argues that it does not have taxable turnover crossing threshold limit of `40,00,000 either
at Chennai, Tamil Nadu or Bengaluru, Karnataka and including turnover at Manipur branch.
Further, It believes that the determination of aggregate turnover is not required for the
purpose of obtaining registration, but is required for determining composition levy.
Determine the aggregate turnover of Rajesh Dynamics. You are also required to review the
technical veracity of the arguments of Rajesh Dynamics. [ICAI Material]
Answer: Computation of aggregate turnover of Rajesh Dynamics:
Particulars `
Supply of petrol at Chennai, Tamil Nadu [Being a non-taxable supply, it is an 18,00,000
exempt supply and thus, includible in aggregate turnover vide section 2(6) of
CGST Act, 2017]
Value of inward supplies on which tax is payable on reverse charge basis Nil
Supply of transformer oil at Chennai, Tamil Nadu 2,00,000
Value of branch transfer from Chennai, Tamil Nadu to Bengaluru, Karnataka 1,50,000
without payment of consideration [Being a taxable supply, it is includible in
aggregate turnover]
Value of taxable supplies of Manipur Branch 11,50,000
Aggregate turnover 33,00,000
Rajesh Dynamics is not liable to be registered in Chennai, Tamil Nadu, if his aggregate turnover
in a financial year does not exceeds ` 40 lakh. However, since Rajesh Dynamics also makes
supplies from Manipur, a specified Special Category State, the threshold exemption gets reduced
to ` 10 lakh in terms of section 22(1) of CGST Act, 2017 [Notification No.10/2019].
Rajesh Dynamics’ argument that it is not liable to registration since the threshold exemption of
` 40 lakh is not being crossed either at Chennai, Tamil Nadu, Bengaluru, Karnataka or Manipur
is not correct as firstly, the aggregate turnover to be considered in its case is ` 10 lakh and not
` 40 lakh and secondly, the same is computed on all India basis and not State - wise.
Further, Rajesh Dynamics is also wrong in believing that aggregate turnover is computed only
for the purpose of determining the eligibility limit for composition levy since the aggregate
turnover is required for determining the eligibility for both registration and composition levy.
Further, Rajesh Dynamics is compulsorily required to register under section 24 of the CGST Act,
2017 irrespective of the turnover limit as it is liable to pay tax on inward supplies under reverse
charge and it also makes inter-State taxable supply.

Question III (7): Rishabh Enterprises – a sole proprietorship firm – started an air-
conditioned restaurant in Virar, Maharashtra in the month of February wherein the
customers are served cooked food as well as cold drinks/non-alcoholic beverages. In March,

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the firm opened a liquor shop in Raipur, Uttarakhand for trading of alcoholic liquor for
human consumption.
Determine whether Rishabh Enterprises is liable to be registered under GST law with the
help of the following information:
Particulars February March
(`)* (`)*
Serving of Cooked food and cold drinks / non-alcoholic 5,50,000 6,50,000
beverages served in restaurant in Maharashtra
Sale of Alcoholic liquor for human consumption in Raipur, 5,60,000
Uttarakhand
Supply of Packed food items from restaurant in 1,50,000 2,00,000
Maharashtra

* Excluding GST
You are required to provide reasons for treatment of various items given above. [ICAI
Material]
Answer: Relevant Provisions: (a) (i) As per section 22 read with N/N 10/2019 CT dated
07.03.2019, a supplier is liable to be registered in the State/Union territory from where he makes
a taxable supply of goods or services or both, if his aggregate turnover in a financial year
exceeds threshold limit. The threshold limit for a person making exclusive intra state taxable
supplies of goods is as under: -
(i) ` 10 lakh for the State of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,
Telangana and Uttarakhand.
(iii) ` 40 lakh for rest of India.
The Threshold limit for a person making exclusive taxable supply of services or supply of both
goods and services in as under: -
(i) ` 10 lakh for the State of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for rest of India.
As per section 2(6) of the CGST Act, 2017, aggregate turnover includes the aggregate value of:
(i) All taxable supplies,
(ii) All exempt supplies,
(iii) Exports of goods and/or services and
(iv) All inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover excludes central tax,
State tax, Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on

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which tax is payable under reverse charge is not taken into account for calculation of
‘aggregate turnover'.
Analysis & Conclusion: In the given question, since Rishabh Enterprises is engaged in making
taxable supplies of goods and services from Maharashtra and non- taxable supplies from
Uttarakhand, the threshold limit for obtaining registration is `20 lakh.
In the light of the afore-mentioned provisions, the aggregate turnover of Rishabh Enterprises is
computed as under:
Computation of aggregate turnover of Rishabh Enterprises
Particulars Turnover of Cumulative turnover
February (`) of February &
March(`)
Serving of cooked food and cold 5,50,000 12,00,000 [`5,50,000 +
drinks/non- alcoholic beverages in `6,50,000]
restaurant in Maharashtra
Add: Sale of alcoholic liquor for human 5,00,000
consumption in Uttarakhand [Note-1]
Add: Supply of packed food items from 1,50,000 3,50,000 [`1,50,000 +
restaurant in Maharashtra `2,00,000]
Aggregate Turnover 7,00,000 20,50,000

Note: 1- As per section 2(47) of the CGST Act, 2017, exempt supply includes non- taxable
supply. Thus, supply of alcoholic liquor for human consumption in Uttarakhand, being a non-
taxable supply, is an exempt supply and is, therefore, includible while computing the aggregate
turnover.
Rishabh Enterprises was not liable to be registered in the month of February since its aggregate
turnover did not exceed `20 lakh in that month. However, since its aggregate turnover exceeds
`20 lakh in the month of March, it should apply for registration within 30 days from the
date on which it becomes liable to registration. Further, he is not liable to be registered in
Uttarakhand since he is not making any taxable supply from Uttarakhand. It should obtain
registration in Maharashtra.

Question III (7): With the help of the following information in the case of M/s. Jayant
Enterprises, Jaipur (Rajasthan) for the financial year 20XX-XY, determine the aggregate
turnover for the purpose of registration under the CGST Act, 2017.

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S. No. Particulars Amount (`)

(i) Sale of diesel on which Sale Tax (VAT) is levied by Rajasthan 1,00,000
Government.
(ii) Supply of goods, after completion of job work, from the place 3,00,000
of Jayant Enterprises directly by principal by declaring the
place of M/s Jayant Enterprises as its additional place of
business.
(iii) Export supply to England (U.K.). 5,00,000

(iv) Supply to its own additional place of business in Rajasthan 5,00,000

(v) Outward supply of service on which GST is to be paid by 1,00,000


recipient under reverse charge.
All the above amounts are excluding GST. You are required to provide reasons for treatment
of various items given above. [ICAI Material]
Answer: Computation of aggregate turnover of M/s. Jayant Enterprises for the FY 20XX-XY:
-
Particulars `
Supply of diesel on which Sales Tax (VAT) is levied by Rajasthan 1,00,000
Government [Note-1]
Supply of goods, after the completion of job work, from the place of Nil
Jayant Enterprises, directly by the principal [Note-2]
Export supply to England [Note-3] 5,00,000

Supply to its own additional place of business in Rajasthan [Note-4] Nil


Outward supply of service on which GST is to be paid by recipient under 1,00,000
reverse charge [Note-5]
Aggregate turnover 7,00,000

Notes: -
1. As per section 2(47) of the COST Act, 2017, exempt supply includes non-taxable
supply. Thus, supply of diesel, being a non-taxable supply, is an exempt supply and
exempt supply is specifically includible in aggregate turnover in terms of section 2(6)
of the CGST Act, 2017.
2. Supply of goods after completion of job work by a principal by declaring the place of
business of job worker its additional place of business, shall be treated as the supply
of goods by the principal in the terms of explanation (ii) to section 22.
3. Export supplies are specifically includible in the aggregate turnover in terms of section
2(6) of the CGST Act, 2017.

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4. Supply made without consideration to units within the same State is a not a supply and
hence not includible in aggregate turnover.
5. Outward supplies taxable under reverse charge would be part of the "aggregate turnover"
of the supplier of such supplies. Such turnover is not included as turnover in the hands
of recipient.
As per section 22(1) read with N/N 10/2019, a supplier is liable to be registered in the state /
union territory from where he makes a taxable supply of goods and/or services, if his aggregate
turnover in a FY exceeds the threshold limit. The threshold limit for a person making exclusive
intra-state taxable supplies of goods is as under: -
(i) `10 lakh for the States of Mizoram, Tripura, Manipur, and Nagaland.
(ii) ` 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana
and Uttarakhand.
(iii) ` 40 lakh for rest of India.
The Threshold limit for a person making exclusive taxable supply of services or supply of both
goods and services in as under: -
(i) ` 10 lakh for the State of Mizoram, Tripura, Manipur and Nagaland.
(ii) ` 20 lakh for rest of India.
The applicable turnover limit for registration, in the given case, will be `20 lakh as Rajasthan is
not a Special Category State and M/s Jayant Enterprises is engaged in supply of goods and
services. Although, the aggregate turnover of M/s Jayant Enterprises does not exceed `20 lakh,
it is compulsorily required to register in terms of section 24(i) of the CGST Act, 2017 irrespective
of the turnover limit as it is engaged in making inter-State supply of goods in the form of
exports to England.

Question III (8): Pure Oils, Delhi has supplied machine oil and high-speed diesel in the
month of April, 20XX as per the details given in the table below. Pure Oils is not yet
registered.
Sl. No. Particulars ` Amount *
(i) Supply of machine oil in Delhi 15,00,000
(ii) Supply of high-speed diesel in Delhi 10,00,000
(iii) Supply of machine oil made in Punjab by Pure Oils from its 10,00,000
branch located in Punjab
*Excluding GST.
Determine whether Pure Oils is liable for registration. [ICAI Material]
Answer: Relevant Provisions: - As per section 22 read with N/N 10/2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or

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services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold
limit for a person making exclusive intra-State taxable supplies of goods is as under:-
(a) ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the States, namely, States of Arunachal Pradesh, Meghalaya,
Puducherry, Sikkim, Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India except persons engaged in making supplies of
tobacco / Ice cream /Pan Masala, Fly ash bricks/ aggregates / blocks.
The threshold limit for a person making exclusive taxable supply of services or supply of both
goods and services is as under: -
(a) ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the rest of India.
As per section 2(6), aggregate turnover includes the aggregate value of:
(i) all taxable supplies,
(ii) all exempt supplies,
(iii) exports of goods and/or services and
(iv) all inter-State supplies of persons having the same PAN.
The above is computed on all India basis. Further, the aggregate turnover excludes central tax,
State tax, Union territory tax, integrated tax and cess. Moreover, the value of inward supplies on
which tax is payable under reverse charge is not taken into account for calculation of ‘aggregate
turnover’.
Section 9(2) provides that CGST is not leviable on five petroleum products i. e. petroleum crude,
motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel. As per section
2(47), exempt supply includes non- taxable supply. Thus, supply of high speed diesel in Delhi,
being a non-
taxable supply, is an exempt supply and is, therefore, includible while computing the aggregate
turnover.
Analysis & Conclusion: - In the backdrop of the above-mentioned discussion, the aggregate
turnover of Pure Oils for the month of April 20XX is computed as under:
S. No. Particulars Amount (`)
(i) Supply of machine oils in Delhi 15,00,000
(ii) Add: Supply of high-speed diesel in Delhi 10,00,000
(iii) Add: Supply of machine oil made by Pure Oils from its branch located 10,00,000
in Punjab
Aggregate Turnover 35,00,000

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Pure Oils is making exclusive supply of goods and hence the threshold limit for registration would
be ` 40,00,000. Since the aggregate turnover does not exceed ` 40,00,000, Pure Oils is not liable
to be registered.
Question III (9): What will be your answer, if in above question, in Sl. No. (ii), Pure Oils
supplies the high-speed diesel in Delhi in the capacity of an agent of Mixed Oils Ltd.?
[ICAI Material]
Answer: In case Pure Oils makes the supply in capacity of an agent of Mixed Oils Ltd.:
Relevant Provisions: -Section 24 provides that an agent who is engaged in making taxable
supplying of goods on behalf of other taxable persons, shall be liable to obtain registration
irrespective of the threshold turnover limit.
Analysis & Conclusion: - In the present case, if Pure Oils supply high speed diesel on behalf
of Mixed Oil Ltd. in Delhi as its agent, it shall still not be liable to obtain registration in Delhi
since section 24 comes into play only when agent is making taxable supply of goods on behalf
of principal whereas in the given case, Pure Oils is supplying non-taxable goods on behalf of
Mixed Oils Ltd.

Question III (10):


(a) Examine whether the supplier is liable to get registered in the following independent
cases:—
(i) Aadi of Assam is exclusively engaged in intra -State supply of taxable services. His
aggregate turnover in the current financial year is ` 25 lakh.
(ii) Atri of Assam is engaged in intra-State supply of both taxable goods and services.
His aggregate turnover in the current financial year is ` 30 lakh.
(b) SBS Ltd., has availed input tax credit for ` 54,000/- IGST during February, 2020 on a
particular purchase. Accounting records for the above purchase, indicate that IGST paid to
the supplier is ` 45,000/- as per the bill received. GSTR-1 uploaded by the supplier for the
above supply indicates ` 45,000/- as tax paid. Examine as per GST provisions, what value
shall be updated in the ledgers maintained on behalf of SBS Ltd., on the common portal.
[ICAI Material]
Answer: (a) Relevant Provisions: - As per section 22, read with Notification No. 10/2019, a
supplier is liable to be registered in the State/Union territory from where he makes a taxable
supply of goods and/or services, if his aggregate turnover in a financial year exceeds the threshold
limit. The threshold limit for a person making exclusive taxable supply of services or supply of
both goods and services is as under: -
- ` 10 lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland.
- ` 20 lakh for the rest of India.
Analysis & Conclusion: -

15
(i) Though Aadi is dealing in Assam, he is not entitled for higher threshold limit for registration
as the same is applicable only in case of exclusively supply of goods and he is exclusively engaged
in providing services. Thus, the applicable threshold limit for registration in this case is ` 20
lakh and hence, Aadi is liable to get registered under GST.
(ii) Since Atri is engaged in supply of both taxable goods and services, the applicable threshold
limit for registration in his case is ` 20 lakh. Thus, Atri is liable to get registered under GST as
his turnover is more than the threshold limit.
(b) Relevant Provisions: - As per Section 49(2), “The input tax credit as self-assessed in
the return of a registered person shall be credited to his electronic credit ledger, in
accordance with section 41, to be maintained in such manner as may be prescribed.”
Analysis & Conclusion: - SBS Ltd., have accounted and paid ` 45,000/- as IGST to the supplier
concerned. However, availment of input tax credit has been made for ` 54,000/-.
Accordingly, electronic credit ledger of SBS Ltd., shall be updated with a value of
` 54,000/- as per self-assessed return to be filed for February 2020, though the input tax credit
shown by the supplier is only ` 45,000/-.

Question III (11): Determine the effective date of registration under CGST Act in respect
of the following cases with proper explanation:
(i) The aggregate turnover of Varun Industries of Mumbai has exceeded ` 40 lakh on 1st
August. Varun Industries manufactures LED TVs in Mumbai and sells them in Pune. It
submits the application for registration on 20th August. Registration certificate granted
on 25th August.
(ii) Sweta InfoTech Services is the provider of internet services in Pune. Its aggregate
turnover exceeds ` 20 lakh on 25 th September. It submits the application for
registration on 27th October. Registration certificate is granted on 5th November. [ICAI
Material]
Answer: Relevant Provisions: As per section 22 read with N/N 10/2019, a supplier is liable to
be registered in the State/Union territory from where he makes a taxable supply of goods and/or
services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold
limit for a person making exclusive intra-State taxable supplies of goods is as under:-
(a) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the States of States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim,
Telangana and Uttarakhand.
(c) ` 40 lakh for rest of India. However, the higher threshold limit of ` 40 lakh is not available
to persons engaged in making supplies of tobacco / Ice cream /Pan Masala, Fly ash bricks/
aggregates / blocks.

16
The threshold limit for a person making exclusive taxable supply of services or supply of both
goods and services is as under:
(a) ` 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.
(b) ` 20 lakh for the rest of India. As per rule 10, where a person submits the application for
registration within 30 days of becoming liable for registration, the effective date of
registration is the date on which the person becomes liable to registration; otherwise it is
the date of grant of registration.
Analysis & Conclusion: In the light of the above provisions, in the given cases, the applicable
turnover limit for registration will be ` 40 lakh and ` 20 lakh respectively in case (i) and (ii).
(i) Since Varun Industries applied for registration within 30 days of becoming liable to
registration, the effective date of registration is 1st August.
(ii) Since Sweta InfoTech Services applied for registration after the expiry of 30 days from the
date of becoming liable to registration, the effective date of registration is 5th November.

[Topic-(IV)- Section 24]


Question IV (1): State the persons who are not liable for registration as per provisions of
Central Goods and Service Tax Act, 2017.
Answer: As per provisions of CGST Act, 2017, the persons who are not liable for registration are
as under—
(a) Person engaged exclusively in supplying goods/services/both that are wholly exempt from
tax.
(b) Person engaged exclusively in supplying goods/services/both that are not liable to tax.
(c) Agriculturist to the extent of supply of produce out of cultivation of land.
(d) Persons only engaged in making supplies of taxable goods or services or both liable to
reverse charge.
(e) Persons making inter-State supplies of taxable services up to an aggregate turnover of
` 20 lakh (` 10 lakh in case of 4 special category States).
(f) Casual Taxable Persons making taxable supplies of specified handicraft goods up to an
aggregate turnover of ` 20 lakh (` 10 lakh in case of 4 special category States) subject
to specified conditions.
(g) Persons making inter-State supplies of specified handicraft goods up to an aggregate
turnover of ` 20 lakh (` 10 lakh in case of 4 special category States) subject to specified
conditions.
(h) Job workers making inter-State supply of services to a registered person up to an
aggregate turnover of ` 20 lakh (` 10 lakh in case of 4 special category States) subject
to specified conditions.

17
(i) Persons making supplies of services through an electronic commerce operator (other
than supplies specified under section 9(5) of the CGST Act) up to an aggregate turnover
of ` 20 lakh (` 10 lakh in case of 4 special category States).

Question IV (2): State with brief reason, whether following suppliers of taxable goods are
required to register under the GST Law:
(i) Mr. Raghav is engaged in wholesale cum retail trading of medicines in the State of
Assam. His aggregate turnover during the financial year is ` 9,00,000 which consists of
` 8,00,000 as Intra-State supply and ` 1,00,000 as Inter-State supply.
(ii) Mr. S.N Gupta of Rajasthan is engaged in trading of taxable goods on his own account
and also acting as an agent of Mr. Rishi of Delhi. His turnover in the financial year
2017-18 is of ` 12 lakhs on his own account and ` 9 lakhs on behalf of principal. Both
turnovers are Intra -State supply.
Answer: (i) Relevant Provisions: - Person making any inter-State taxable supply of goods is
required to obtain registration compulsorily under GST laws irrespective of the quantum of
aggregate turnover.
Analysis & Conclusion: - In the given case Mr. Raghav is required to obtain registration
compulsorily under GST laws even though his aggregate turnover does not exceed the threshold
limit of ` 40 lakh in the financial year.
(ii) Relevant Provisions: - Persons who make taxable supply of goods on behalf of other
taxable persons whether as an agent or otherwise are required to obtain registration
compulsorily under GST laws irrespective of the quantum of aggregate turnover.
Aggregate turnover includes all supplies made by the taxable person, whether on his own
account or made on behalf of all his principals.
Analysis & Conclusion: - Since Mr. S.N Gupta is also acting as an agent of Mr. Rishi of Delhi,
he is required to obtain registration compulsorily under GST laws.

Question IV (3): Examine, with reason, whether registration is required, under CGST Act, in
the following independent cases:
(i) Aadhav Computers of Gujarat is providing computer maintenance service. Aggregate
turnover of Aadhav Computers is ` 15 lakh which comprises both inter-State and intra-
State supply.
(ii) Soft Wings of West Bengal, exclusively trading in garments, supplies its taxable goods
in various States of India from its outlet in West Bengal. Aggregate turnover of Soft Wings
is ` 35 lakh. [ICAI Material]
Answer: (i) Relevant Provisions: - As per section 24, Registration is compulsory for suppliers
engaged in inter-State supply. However, as per Notification No. 10/2017, threshold exemption

18
of ` 20 lakh [` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and
Nagaland] is available in case of inter-State supply of taxable services.
Analysis & Conclusion: - Therefore, Aadhav Computers (aggregate turnover ` 15 lakh) is not
required to obtain registration even though it is engaged in inter-State supply of taxable services.
(ii) Relevant Provisions: -The threshold limit for registration in the State of West Bengal for the
persons engaged exclusively in supply of goods, is ` 40 lakh. However, registration is compulsory
if the supplier is engaged inter-State supply of goods irrespective of the quantum of
aggregate turnover. The threshold exemption is not available in case of inter-State supply of
taxable goods.
Analysis & Conclusion: - Thus, Soft Wings is required to obtain registration.

Question IV (4): Mr. Q, a casual taxable person of Gujarat state is a trader of taxable notified
handicraft goods. It makes supplies to the states of Maharashtra, Rajasthan and Andhra
Pradesh. Turnover for October, 20XX is ` 18 Lakh.
(i) Explain the provisions of registration for casual taxable person under GST. Examine
whether Mr. Q is liable for registration or not?
(ii) What will be the answer if Mr. Q makes trading in taxable notified products
instead of taxable notified handicraft goods which involves 75% making on
machine and 25% by hand? [Dec 2021 5 Marks]
Answer: (i) Relevant Provisions: As per section 24, A casual taxable person is required to
obtain compulsory registration under GST irrespective of the quantum of its aggregate
turnover.
However, a threshold limit of ` 20 lakh (` 10 lakh in case of specified Special Category States)
is available for registration to a casual taxable per son who:
(a) is making inter-State taxable supplies of notified handicraft goods and notified
hand-made goods,
(b) is availing the benefit of exemption from registration available to inter-State
supply of above-mentioned goods upto the aggregate turnover of ` 20 lakh (` 10
lakh in case of specified Special Category States), and
(c) has obtained a PAN and
(d) has generated an e-way bill.
Analysis & Conclusion: In the given case, since Mr. Q is engaged in supplying notified handicraft
goods and its aggregate turnover does not exceed ` 20 lakh, he will not be liable to registration
provided he fulfills other conditions specified herein.
(ii) In case Mr. Q is engaged in trading of notified products which are predominantly made by
machine, he will not be eligible for the exemption from registration under aforesaid provisions
and needs to take compulsory (mandatory) registration

19
It has been assumed that Mr. Q has started supply of goods in October 20XX itself.

Question IV (5): Examine whether the liability to register compulsorily under section 24
arises in each of the independent cases mentioned below:
(1) Meenu, a supplier in Maharashtra, is exclusively engaged in supply of potatoes produced
out of cultivation of her own land, within Maharashtra and also outside Maharashtra.
(2) Jinu Oils, Gujarat, is engaged in supplying machine oil as well as petrol. Further, it
provides services of refining of oil to customers. Total turnover of supply of machine oil is
` 10 lakh, supply of petrol is ` 5 lakh and supply of services is ` 6 lakh.
(3) Tilu is working as an agent, he is supplying taxable goods as an agent of Tiku (who is
registered taxable person) and its aggregate turnover does not exceed ` 20 lakh during the
financial year. [ICAI Material]
Answer: (1) Relevant Provisions: Section 24 provides that persons making any inter-State
taxable supply of goods are required to obtain registration compulsorily under GST laws
irrespective of the quantum of aggregate turnover. However, as per section 23, an agriculturist,
to the extent of supply of produce out of cultivation of land, is not liable to registration.
Analysis & Conclusion: Meenu is exclusively engaged in cultivation and supply of potatoes.
Thus, she is not liable to registration irrespective of the fact that she is engaged in making
inter-State supply of goods. Further, Meenu will not be liable to registration, in the given case,
even if her turnover exceeds the threshold limit.
(2) Relevant Provisions: Section 24 specifies the categories of persons who are required to be
mandatorily registered under GST irrespective of the quantum of their aggregate turnover.
Analysis & Conclusion: In the given case, Jinu Oils does not fall in any of the specified
categories. Therefore, it is not required to obtain registration compulsorily under GST.
However, as per section 22 read with Notification No. 10/2019, a supplier is liable to be
registered in the State/Union territory from where he makes a taxable supply of goods
and/or services, if his aggregate turnover in a financial year exceeds the threshold limit.
The threshold limit for a person making supply of both goods and services is ` 10 lakh for the
States of Mizoram, Tripura, Manipur and Nagaland and ` 20 lakh for the rest of India. Thus,
the applicable threshold limit for the State of Gujarat is ` 20 lakh for supply of both goods and
services. Further, aggregate turnover includes exempted turnover of goods or services. Accordingly,
Jinu Oils is liable obtain registration since its aggregate turnover [` 21 lakh (including turnover
of exempt supply of petrol)] exceeds the threshold limit of ` 20 lakh.
(3) Relevant Provisions: Section 24 provides that persons who make taxable supply of goods
and/or services on behalf of other taxable persons whether as an agent or otherwise are
required to obtain registration compulsorily under GST laws irrespective of the quantum of
aggregate turnover.

20
Analysis & Conclusion: Therefore, Tilu will be mandatorily required to obtain registration.

[Topic-(V)- Section 23]


Question V (1): BBD Pvt. Ltd. of Gujarat exclusively manufactures and sells product 'Z'
which is exempt from GST vide notifications issued under relevant GST legislations. The
company sells 'Z' only within Gujarat and is not registered under GST laws. The turnover of
the company in the previous year 20XX-XY was ` 50 lakh. The company expects the sales
to grow by 10% in the current year 20XY-XZ.
However, effective 01.01.20XZ, exemption available on 'Z' was withdrawn by the Central
Government and GST@ 5% was imposed thereon. The turnover of the company for the nine
months ended on 31.12.20XY was ` 42 lakh.
BBD Pvt. Ltd. is of the opinion that it is not required to get registered under GST for
current financial year 20XY-XZ.
Examine the above scenario and advise BBD Pvt. Ltd. whether it needs to get registered
under GST or not. [Nov 2020 Marks 4]
Answer: Relevant Provisions: For a supplier exclusively engaged in intra-State supply of goods,
the threshold limit of turnover to obtain registration in the State of Gujarat is ` 40 lakh.
However, a person exclusively engaged in the business of supplying goods and/or services that
are not liable to tax or are wholly exempt from tax is not liable to registration.
Analysis & Conclusion: Therefore, since BBD Pvt. Ltd. was engaged exclusively in supplying
exempted goods till 31.12.20XY, it was not required to be registered till that day; though voluntary
registration was allowed.
The position, however, will change from 01.01.20XZ as the supply of goods become taxable
from that day and the turnover of BBD Pvt. Ltd. is more than ` 40 lakh. Since the aggregate
turnover limit of ` 40 lakh includes exempt turnover also, turnover of ‘Z’ till 31.12.20XY will
be considered for determining the threshold limit even though the same was exempt from
GST. Therefore, BBD Pvt. Ltd. needs to register within 30 days from 01.01.20XZ.

[Topic-(VI)- Combined & Procedural Questions]


Question VI (1): If a person is making taxable supplies from different States, with the
same PAN number, can he operate with a single registration? [ICAI Material]
Answer: No. Every person who is liable to take a registration will have to get registered separately
for each of the States where he has a business operation (and making taxable supplies) provided
his aggregate turnover exceeds applicable threshold limit.

Question VI (2): Can a person having multiple places of business in a State obtain separate
registrations for each place of business? [ICAI Material]

21
Answer: Yes. In terms of the proviso to sub-section (2) of section 25, a person having
multiple places of business in a State may obtain a separate registration for each place of
business, subject to such conditions as may be prescribed.

Question VI (3): Is there a provision for a person to get himself voluntarily registered though
he may not be liable to pay GST? [ICAI Material]
Answer: Yes. In terms of sub-section (3) of section 25, a person, though not liable to be
registered under sections 22 or 24 may get himself registered voluntarily, and all provisions
of this Act, as are applicable to a registered taxable person, shall apply to such person.

Question VI (4): Can the Department, through the proper officer, suo-moto proceed to
register a person under GST? [ICAI Material]
Answer: Yes. In terms of sub-section (8) of section 25, where a person who is liable to be
registered under GST law fails to obtain registration, the proper officer may, without
prejudice to any action which may be taken under CGST Act, or under any other law for the
time being in force, proceed to register such person in the manner as is prescribed in the
CGST Rules.

Question VI (5): Whether the registration granted to any person is permanent? [ICAI
Material]
Answer: Yes, the registration certificate once granted is permanent unless surrendered,
cancelled, suspended or revoked.

Question VI (6): Is it necessary for the UN bodies to get registration under GST? [ICAI
Material]
Answer: In terms of section 25(9), all notified UN bodies, Consulate or Embassy of foreign
countries and any other class of persons so notified would be required to obtain a unique
identification number (UIN) from the GST portal. The structure of the said ID would be
uniform across the States in conformity with GSTIN structure and the same will be common for
the Centre and the States. This UIN will be needed for claiming refund of taxes paid on
notified supplies of goods and services received by them, and for any other purpose as may
be notified.

Question VI (7): What is the responsibility of the taxable person making supplies to UN
bodies? [ICAI Material]
Answer: The taxable supplier making supplies to UN bodies is expected to mention the UIN
on the invoices and treat such supplies as supplies to another registered person (B2B).

22
Question VI (8): What is the validity period of the registration certificate issued to a casual
taxable person and non- resident taxable person? [ICAI Material]
Answer: In terms of section 27(1) read with proviso thereto, the certificate of registration
issued to a “casual taxable person” or a “non-resident taxable person” shall be valid for
a period specified in the application for registration or 90 days from the effective date of
registration, whichever is earlier. However, the proper officer, at the request of the said taxable
person, may extend the validity of the aforesaid period of 90 days by a further period not
exceeding 90 days.

Question VI (9): What happens when the registration is obtained by means of willful mis
statement, fraud or suppression of facts? [ICAI Material]
Answer: In such cases, the registration may be cancelled with retrospective effect by the
proper officer [Section 29(2)(e)].
Question VI (10): Is there an option to take centralized registration for services under GST
Law? [ICAI Material]
Answer: No, the tax paper has to take separate registration in every State from where he
makes taxable supply of services.

Question VI (11): What could be the liabilities (in so far as registration is concerned) on
transfer of a business? [ICAI Material]
Answer: The transferee or the successor shall be liable to be registered with effect from
such transfer or succession and he will have to obtain a fresh registration with effect from
the date of such transfer or succession [Section 22(3)].

Question VI (12): At the time of registration, will the assessee have to declare all his places
of business? [ICAI Material]
Answer: Yes. The principal place of business and place of business have been separately
defined under section 2(89) & 2(85) respectively. The taxpayer will have to declare the
principal place of business as well as the details of additional places of business in the registration
form.

Question VI (13): Does cancellation of registration impose any tax obligations on the person
whose registration is so cancelled? [ICAI Material]
Answer: Yes, as per section 29(5), every registered person whose registration is cancelled
shall pay an amount, by way of debit in the electronic credit ledger or electronic cash
ledger, equivalent to the credit of input tax in respect of inputs held in stock and inputs

23
contained in semi-finished or finished goods held in stock or capital goods or plant and machinery
on the day immediately preceding the date of such cancellation or the output tax payable
on such goods, whichever is higher.

Question VI (14): State which of the following suppliers are liable to be registered:
(a) Agent supplying taxable goods on behalf of some other taxable person and its aggregate
turnover does not exceed the applicable threshold limit during the financial year.
(b) An agriculturist who is only engaged in supply of produce out of cultivation of land and
its aggregate turnover exceeds the applicable threshold limit during the financial year. [ICAI
Material]
Answer: (a) Section 22 stipulates that every supplier becomes liable to registration if his
turnover exceeds the applicable threshold limit in a financial year. However, as per section 24,
a person making taxable supply of goods/services or both on behalf of other taxable persons
whether as an agent or not is liable to be compulsorily registered even if its aggregate turnover
does not exceed the applicable threshold limit during the financial year.
(b) As per section 23, an agriculturist who is only engaged in supply of produce out of cultivation
of land is not required to obtain registration even if his turnover exceeded the applicable threshold
limit for registration.

Question VI (15): Determine the effective date of registration in following cases:


(a) The aggregate turnover of Dhampur Footwear Industries of Delhi has exceeded the
applicable threshold limit of ` 40 lakh on 1st September. It submits the application for
registration on 20th September. Registration certificate is granted to it on 25th
September.
(b) Mehta Teleservices is an architect in Lucknow. Its aggregate turnover exceeds ` 20 lakh
on 25th October. It submits the application for registration on 27th November.
Registration certificate is granted to it on 5th December. [ICAI material]
Answer:
(a) Relevant Provisions: -Every supplier becomes liable to registration if his turnover exceeds
the applicable threshold limit [` 40 lakh in this case] in a financial year [Section 22 read with
N/N 10/2019].
Analysis & Conclusion: - Since in the given case, the turnover of Dhampur Industries exceeded
` 40 lakh on 1st September, it becomes liable to registration on said date. Further, since the
application for registration has been submitted within 30 days from such date, the registration
shall be effective from the date on which the person becomes liable to registration [Section 25
read with rule 10]. Therefore, the effective date of registration is 1st September.

24
(c) Analysis & Conclusion: - Since in the given case, the turnover of Mehta Teleservices
exceeds the applicable threshold limit [` 20 lakh] on 25th October, it becomes liable
to registration on said date. Further, since the application for registration has been
submitted after 30 days from the date such person becomes liable to registration, the
registration shall be effective from the date of grant of registration. Therefore, the
effective date of registration is 5th December.

Question VI (16): PQR Ltd of Kalkaji, Delhi has affected intra state supplies of taxable
goods amounting `14,00,000 till 31-12-20XX. On 1-1-20XY it has affected inter-state supply
of taxable goods amounting to `2,00,000. PQR Ltd is of the view that it is not required to
get registered under GST law since its aggregate turnover is not likely to exceed 20,00,000
during financial year 20XX-XY. As a consultant of the company, you are required to advise
the company relating to registration requirements.
Answer: The opinion of PQR Ltd is not correct.
As per Sec 24, persons making inter- state taxable supply are compulsorily required to obtain
registration. Thus, Section 24 is an overriding section that makes it mandatory to obtain
registration by certain prescribed persons even though the conditions prescribed u/s 22 are not
met. Hence, PQR ltd is mandatorily required to obtain registration.
As per Sec 25 of CGST Act,2017, every person who is liable to be registered u/s 22 or 24 shall
apply for registration in every state or UT in which he is so liable within 30 days from the
date on which he becomes liable for registration, in such manner & subject to such conditions
as may be prescribed. Thus, PQR ltd. is required to obtain registration upto 31-1-20XY.

Question VI (17): Mr. Neerav Kothari of Jaipur often participates in the jewellery exhibition
at Trade Fair in Delhi, which is organised every year in the month of February. Mr. Neerav
Kothari applied for registration in January. The proper officer demanded an advance deposit
of tax in an amount equivalent to the estimated tax liability of Mr. Neerav Kothari.
You are required to examine whether any advance tax is to be paid by Mr. Neerav Kothari
at the time of obtaining registration?
Answer: Yes, advance tax is to be paid by Mr. Neerav Kothari at the time of obtaining
registration. Since Mr. Neerav Kothari occasionally undertakes supply of goods in the course or
furtherance of business in a State where he has no fixed place of business, thus he qualifies
as casual taxable person in terms of section 2(20) of CGST Act, 2017.
While a normal taxable person does not have to make any advance deposit of tax to obtain
registration, a casual taxable person shall, at the time of submission of application for
registration is required. The person required to make an advance deposit of tax in an amount
equivalent to the estimated tax liability of such person for the period for which the registration

25
is sought. If registration is to be extended beyond the initial period of 90 days an advance
additional amount of tax equivalent to the estimated tax liability is to be deposited for the
period for which the extension beyond 90 days is being sought.

Question VI (18): In order to be eligible for grant of registration, a person must have a
Permanent Account Number issued under the Income- tax Act, 1961. State one exception to
it. [ICAI Material]
Answer: A Permanent Account Number is mandatory to be eligible for grant of registration.
One exception to this is a non-resident taxable person. A non- resident taxable person may
be granted registration on the basis of other prescribed documents instead of PAN. He has to
submit a self-attested copy of his valid passport along with the application signed by his
authorized signatory who is an Indian Resident having valid PAN and application will be
submitted in a different prescribed form [Section 25(6) & (7)].

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