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Registration under GST

27 June 2017

if a manufacturer selling only exempted goods but above 20 lacs and also makes inter state supplies.
Is he required to take GST registration?

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10 Replies

Sudhakar (account operations) (75 Points)
Replied 27 June 2017

Yes,. as exempted goods are within the 20 lac turnover and any inter state supplies mandate GST

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Parul Maiya Newar (48 Points)
Replied 27 June 2017

thank you !!

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

Even 1 rs of inter-state sale requires you to get registered under GST. The turnover limit of Rs 20 lacs is irrelevant here...

Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 27 June 2017

Interstate supply requires GST no matter if it is exempted or not.

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

I would like to defer from Mr. Vinay here...No need to get registered if amking wholly exempt supply irrespective of both turnover & inter-state sales.

Reason: A person making wholly exempy supply then no need to register under GST (Refer Sec 23). The sec 24 which makes registration mandatory for inter-state supply over-rides only the turnover limit of sec 22(1). Hence, no need to get registered even if inter-state supply of wholly exempt goods/services.

Even logically also, if there is no output liability to pay tax and no ITC since not prior regstration to claim refund thereof, then for what purpose will such a person get registered..?!

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Vinay Garg (Student cum businessman cum professional) (859 Points)
Replied 27 June 2017

Thank you Mr.Devansh Jain for correction. Any person falling under exceptions to mandatory registration is not liable for registration even if the supplies are made outside the state or even exported.

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

In my opinion yes not required to be registered..........

Mansoor Mampad (99 Points)
Replied 27 June 2017

No...Only to make interstate taxable supply ...one has to take Registration .Section 22 itself states that Registration above 20 Lakhs is compulsory only to make Taxable supplies

CA Revanth Bharathwaj M (Freelance consultant in Direct Tax and Financial Reporting) (373 Points)
Replied 27 June 2017

in my opinion, only interstate sale (if supply includes purchase as well) will mandate for registration and not the purchase

Aatish Sameer (Accountant) (27 Points)
Replied 30 June 2017

Basic requirements of Registration

Section 22 of Central Goods and Service Tax Act [CGST] provides that every supplier shall register in every State/Union Territory from which he makes a taxable supply of goods or services or both subject to his crossing 20lac/10lac aggregate turnover limit in a financial year. Section 2(6) defines "Aggregate turnover" means the aggregate value of all taxable supplies (excluding value of inward supplies liable to tax on reverse charge basis), exempt supplies, exports of goods and services or both and inter-state supplies of persons having the same Permanent Account Number [PAN] to be computed on all India basis, but excludes Central sales tax, State tax, Union Territory Tax, Integrated Tax and Cess.

I guess this clears ur doubts... and it is mandatory even for exempted goods supplier to get reistered i guess