Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Gst eligibilty for registration

13 November 2020

my client
dealing in exempted supplies of 60 lac in a year
and also dealing taxable supplies of 10 lac
exempt 60 lac
taxable 10 lac
_______________
70 lac total turnover
does he have to take registration in gst

Reply
Follow
Share

3 Replies

madhusudan (job) (32 Points)
Replied 13 November 2020

Yes as the taxable supply is more than 20 lacs

Upgrade to CAclubindia Pro. Subscribe Now!

JATINDER KUMAR (Accountant) (3662 Points)
Replied 13 November 2020

Yes

You are required to apply for GST registration

Shivam RC (Student) (23683 Points)
Replied 13 November 2020

Yes @ adienterprise Pvt Ltd, you are required to take GST Registration since your Annual "Aggregate Turnover" exceeds Rs. 20 lakhs [ Rs. 70 lakhs in your case ].

Aggregate Turnover as defined under Section 2(6) of the CGST Act 2017 means the "aggregate value of all Taxable supplies ( excluding the value of inward supplies on which tax is payable by a person on RCM basis ), EXEMPT Supply, Export of Goods or Services or both and Inter State Supply of Persons having the same PAN to be computed on all India basis but excludes CGST, SGST, UTGST, IGST and Cess."

So while calculating your Aggregate Turnover for the purpose of determining whether to opt for GST Registration or not, You have to consider both Exempt as well as Taxable Supply. Since the AGT of your client exceeds the turnover threshold limit as prescribed under Section 22 of the CGST Act 2017 ( Rs. 20 lakhs ), Your client have to compulsorily apply for GST Registration.

NOTE : As per the Provision of Section 23(1) clause (a) of the CGST Act 2017, A Person who is engaged in "EXCLUSIVE SUPPLY OF EXEMPTED GOODS or SERVICES" is not liable to take GST Registration. However if the person also supplies Taxable Goods even worth of Rs. 1, then the said person is required to take GST Registration Mandatorily provided his aggregate turnover exceeds the basic turnover threshold limit.

Regards,
Shivam RC.

1 Like