07 July 2024
In the scenario you've described, where a dealer is involved in the interstate trade of raw mangoes and their turnover crosses Rs 40 lakhs, let's break down the GST registration requirement and the tax implications:
1. **GST Registration Requirement**: - If the dealer's turnover from the sale of raw mangoes (or any other taxable goods) exceeds Rs 40 lakhs in a financial year, they are required to register under GST. - The threshold limit for GST registration is Rs 40 lakhs for businesses engaged in the supply of goods (Rs 20 lakhs for services providers).
2. **Taxability of Raw Mangoes**: - Raw mangoes are generally exempted from GST. According to the GST Act, fresh fruits are exempted from GST (under HSN code 0804). This exemption applies to raw mangoes as well. - Since raw mangoes are exempt from GST, any dealer exclusively dealing in raw mangoes would not have a GST liability on those sales. However, they would still need to register if their turnover exceeds the threshold amount due to sales of other taxable goods.
3. **Dealing in Goods other than Raw Mangoes**: - If the dealer also deals in goods other than raw mangoes and their aggregate turnover crosses Rs 40 lakhs in a financial year, they must register for GST. - Goods other than raw mangoes would be subject to GST as per their respective GST rates (depending on the HSN code of the goods).
**Conclusion**: - **GST Registration**: The dealer would need to register for GST if their turnover exceeds Rs 40 lakhs in a financial year, regardless of whether they are dealing exclusively in exempt goods like raw mangoes or other taxable goods. - **Taxability of Raw Mangoes**: Raw mangoes are exempt from GST, so no GST would be applicable on the sale of raw mangoes. However, GST would apply to other taxable goods sold by the dealer.
It's essential to monitor turnover regularly and comply with GST registration requirements to avoid penalties for non-registration if the threshold is crossed.
CAclubindia
