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Turnover exceeding limit

05 December 2021

i am running a business of exempted goods.i have registered in gst on nov 2021.but by june2021 i had crossed the limit for gst registration. what should i do..? pls reply..thanks in advance

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9 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14805 Points)
Replied 05 December 2021

Are you engaged only in a , wholly exempt supply of Goods ? .

1 Like

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sabyasachi mukherjee (27579 Points)
Replied 06 December 2021

It's imperative to state the nature of goods /services you deal with.

1 Like

NICSON JOHN (514 Points)
Replied 06 December 2021

I am dealing with raw rice and salt only

sabyasachi mukherjee (27579 Points)
Replied 06 December 2021

Do you hv a brand?

1 Like

NICSON JOHN (514 Points)
Replied 06 December 2021

No i have no brand

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CA NIKHIL JAIN (PRACTICING CHARTERED ACCOUNTANT) (35 Points)
Replied 06 December 2021

Legal Provisions:

As per Section 22 of CGST Act, 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 the threshold limit.

Meaning of Aggregate Turnover as per Section 2(6) of CGST Act, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and 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;

Conclusion:

Thus as per the above provisions Exempted supply is used to calculate aggregate turnover, but liability to register arises only if person is making taxable supply. Thus if you are making 100% exempted supply, then irrespective of turnover you are not required to obtain GST registration.

Further, the same has been clarified by the department through FAQs.

I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right ?

No, if you are dealing in 100% exempted supplies you are not liable to be registered in GST. There is no requirement of registration for making inter-state purchases.

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