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Study Guidelines by ICAI - for May, 2019 examination

Final (New) Course Paper 8: Indirect Tax Laws


List of topic-wise exclusions from the syllabus
(1) (2) (3)
S. No. in Topics of the syllabus Exclusions
the (Provisions which are excluded from the
syllabus corresponding topic of the syllabus)
1(ii) Levy and collection of CGST and IGST – Application CGST Act, 2017 & IGST Act, 2017
of CGST/IGST law; Concept of supply including (i) Rate of tax prescribed for supply of goods*
composite and mixed supplies, inter-State supply, (ii) Rate of tax prescribed for supply of services*
intra-State supply, supplies in territorial waters;
(ii) Exemptions for supply of goods
Charge of tax; Exemption from tax; Composition
levy
1(v) Input tax credit Manner of reversal of credit of additional duty of customs
in respect of Gold dore bar
1(vii) Procedures under GST – All procedures including CGST Act, 2017 and CGST Rules, 2017
registration, tax invoice, credit and debit notes, (i) Furnishing of GSTR-2, GSTR-1A, GSTR-3, GSTR-7,
electronic way bill, accounts and records, returns, GSTR-8
payment of tax including reverse charge, refund, job (ii) Claim of input tax credit and provisional acceptance
work thereof
(iii) Matching, reversal & reclaim of input tax credit
(iv) Matching, reversal & reclaim of reduction in output tax
liability
(v) Categories of supply of goods, tax on which is
payable on reverse charge basis under section
9(3)
IGST Act, 2017
• Categories of supply of goods, tax on which is
payable on reverse charge basis under section
5(3)
1(xvi) Other Provisions Transitional Provisions
*Rates specified for computing the amount payable under composition levy are included in the syllabus.
Notes:
(1) Only the following sections of the CGST (Amendment) Act, 2018, which have become retrospectively effective from 1st July,
2017, are applicable for May, 2019 examination:
(i) Section 3 of the CGST Amendment Act, 2018 amending section 7 of the CGST Act, 2017, and
(ii) Section 31 of the CGST Amendment Act, 2018 amending Schedule II to the CGST Act, 2017.
Section 28 of the CGST Amendment Act, 2018 which has amended section 140 of the CGST Act, 2017, though effective from
1st July, 2017, is not applicable for May, 2019 examination as section 140 covered under “Chapter XX – Transitional Provisions”
has been excluded from the syllabus by way of Study Guidelines as mentioned above. It may be noted that all the remaining
provisions of the CGST Amendment Act, 2018 have not been made effective till 31.10.2018 and hence, are not applicable for
May, 2019 examination.
(2) In the above table, in respect of the topics of the syllabus specified in column (2) the related exclusion is given in column (3).
Where an exclusion has been so specified in any topic of the syllabus, the provisions corresponding to such
exclusions, covered in other topic(s) forming part of the syllabus, shall also be excluded.
(3) October, 2018 edition of the Study Material is relevant for May, 2019 and November, 2019 examinations.
The amendments in Part-II: Customs & FTP - made after the issuance of this Study Material - to the extent covered in the
Statutory Updates for May, 2019 examination alone shall be relevant for the said examination. The Statutory Updates
shall be hosted on the BoS Knowledge Portal.
(4) The entire content included in the October, 2018 edition of the Study Material, except the exclusions mentioned in the table
above, and the Statutory Updates for May, 2019 examination shall be relevant for the said examination.
` 1

Relevant Legal Provisions


Section Rules
Section Subject Matter Rule Subject Matter
CGST Sec. 23 Persons not liable for registration
Sec. 22 Persons liable for registration
Sec. 24 Compulsory registration in certain cases
Sec. 25 Procedure for registration Rule 8 Application for registration
Rule 9 Verification of the application and approval
Rule 10 Issue of registration certificate
Rule 11 Separate registration for multiple business
verticals within a State or a Union territory
Rule 12 Grant of registration to persons required to
deduct tax at source or to collect tax at
source
Rule 14 Grant of registration to a person supplying
OIDAR services from a place outside India to
a NTOR (non-taxable online recipient)
Rule 15 Extension in period of operation by Casual
TP and non-resident TP
Rule 16 Suo motu registration
Rule 17 Assignment of Unique Identity Number
(UIN) to certain special entities.
Rule 18 Display of registration certificate and GSTIN
on the name board
Sec. 26 Deemed registration
Sec. 27 Special provisions relating to Casual TP Rule 13 Grant of registration to non-resident taxable
and non-resident TP person
Rule 15 Extension in period of operation by casual
taxable person and non-resident TP
Sec. 28 Amendment of registration Rule 19 Amendment of registration
Sec. 29 Cancellation of registration Rule 20 Application for cancellation of registration
Rule 21 Registration to be cancelled in certain cases
Rule 22 Cancellation of registration
Rule 44 Manner of Reversal of Credit under SPECIAL
CIRCUMSTANCES
Sec. 30 Revocation of cancellation of registration Rule 23 Revocation of certificate of registration

IGST Sec 20 Application of provisions of CGST Act Rule 2 Application of provisions of CGST Rules
- All above sections have been made - Related rules have been made
applicable applicable

Relevant Definitions
CGST 2 (85) Place of business 2 (5) Agent
2 (89) Principal Place of business 2 (7) Agriculturist
2 (94) Registered person 2 (20) Casual Taxable person
2 (107) Taxable person 2 (77) Non-resident taxable person
2
3

Person liable to take Registration Person not liable to take registration

Sec 22 Person liable for registration Sec 23 Person not liable for registration
22(1) Supplier of taxable supply with 23(1) Supplier exclusively engaged in supply that
‘ATO (FY) > 20 lakhs (10 lakhs) are
- Not liable to tax; or
- Wholly exempt
under CGST Act or IGST Act
22(2) Person already registered under
existing law an AGRICULTURIST, to the extent of supply of
 Mandatory migration under GST produce out of cultivation of land.
Law
22(3) Transferee / Successor of business 23(2) NOTIFIED CATEGORIES **
(acquisition/ succession of business
.

Many Notifications have been issued


being run by registered person) .

22(4) Transferee where transfer is in


pursuant to a Scheme of
amalgamation / merger / demerger
approved by HC/ Tribunal

Sec 24 Compulsory registration in


certain cases
(12 categories of persons)
(ATO is not relevant in these cases)

Notes Notes
If such person failed to take mandatory registration, Such person may opt for voluntarily registration. If so opted for, then
then he shall be liable to penalty in terms of Sec 122(1)(xi) of all provisions as applicable to registered person shall be applicable. [Sec
CGST Act. 25(3)]
Further, PO is empowered to proceed to register such person
(in prescribed manner) – [Sec 25(8)]
.
4
5
Registration Procedure as per Rules
6
7

Registration Cancellation

Cancellation applied for by RP  Cancellation applied for by RP  PO has reason to believe that
. registration shall be cancelled
Or Cancellation by PO
Application FORM GST REG-16
SCN Whenever he has
• Discontinuation of business Time limit 30 days of reason to believe that
• Transfer of business occurrence of registration shall be
• Change in constitution of the business event* cancelled -- [FORM
• Taxable person (other than who has taken voluntarily registration) GST REG-17]
PO considers registration shall be
who is no longer liable to be registered u/Sec 22 or Sec 24 (e.g., cancelled Reply by RP Within 7 working days
Registered person whose goods/services have now become wholly --- [FORM GST REG-18]
exempt under GST) Cancellation Within 30 days of
Order date of submission of Cancellation Within 30 days of reply
application Order of SCN -- [FORM GST
-- [FORM GST REG- REG-19]
19] .

Cancellation by PO (his exclusive right)  PO has reason to believe that


registration shall be cancelled
• Following 3 legal contraventions
(a) RP does not conduct any business from the declared place of SCN Whenever he has
business; or reason to believe that
(b) RP issues invoice or bill without supply of goods or services in registration shall be
violation of the provisions of this Act, or the rules made cancelled -- [FORM
thereunder; or GST REG-17]
(c) RP violates the provisions of section 171 of the Act or the rules Reply by RP Within 7 working days
made thereunder (Anti-profiteering measures) --- [FORM GST REG-
18]
• Registration obtained by fraudulent means;
• Voluntarily Registration taken, but business not commenced Cancellation Within 30 days of
within 6 months Order reply of SCN -- [FORM
• Consistent default in furnishing returns GST REG-19]

Composition Continuous default in furnishing Returns for 3


Supplier tax periods [Tax period= Quarter]
Regular Continuous default in furnishing Returns for 6
Supplier months [Tax period= Months]

Cancellation of registration Discharge following liabilities as provided for in Sec 29(5) of CGST Act, 2017
Input in stock Higher of following : - (a) related ITC availed; (b) Output tax payable on inputs

CG in stock Higher of following : - (a) Reduced ITC (ITC availed* Bal life in complete months / 60 months); (b) Output tax payable on CG
.
8

Registration: Benefits and necessity

[Expected]
1. What are the advantages of taking registration in GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Registration under Goods and Services Tax (GST) regime will confer following basis advantages to the business:
 Right to collect tax from recipient of supply: Registration entitles supplier to collect tax from his purchasers. [A
person who is not registered person shall not collect in respect of any supply of goods and/or services any amount by way
of tax – Sec 32 of CGST Act]
 Right to claim ITC: Registration entitled a person to claim ITC. Unregistered person is not entitled to claim ITC [Sec 16
of CGST Act].

Note: Other benefits often mentioned in study material


1. Legally recognized as supplier of goods or services.
2. Getting eligible to avail various other benefits and privileges rendered under the GST laws (e.g., for availing benefit provided
by sec 16 of IGST Act in respect of zero-rated supply)

2. Can a person without GST registration claim ITC and collect tax?
(ICAI Final Study Material) (CBEC FAQ)
Ans. 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.
Note:
1. Only registered supplier can collect GST – Sec 32 of CGST Act
2. Only registered person can avail ITC – Sec 16 of CGST Act
.

Composition Supplier = Registered supplier


• He cannot avail ITC – Sec 10(4) of CGST Act
• He cannot collect GST paid from the recipient. – Sec 10(4) of CGST Act
Sec 10 of CGST Act has placed these restrictions upon composition supplier.
.

3. LMN & Co, an unregistered supplier under GST wants to claim input tax credit and collect tax. Can it do so?
(ICAI – Test Paper for May, 2018)
Ans. No, LMN & Co. cannot claim input tax credit and collect tax. A person without GST registration can neither collect GST from his
customers nor can claim any input tax credit of GST paid by him. However, if LMN & Co. nevertheless wants to claim input tax
credit and collect tax, it can apply for voluntary registration under section 25(3) of CGST Act, 2017.

Registration: Persons required to take registration or not


[Expected]
4. Who are the persons liable to take a Registration under the GST Law?
(CBEC FAQ)
Ans. As per Section 22 of the CGST/SGST Act 2017, every supplier who makes a taxable supply i.e. supply of goods and / or services
which are leviable to tax under GST law, and his aggregate turnover in a financial year exceeds the threshold limit of Rs 20
lakhs shall be liable to register himself in the State or Union territory from where he makes the taxable supply.
In case of eleven special category states (excluding State of J&K), this threshold limit for registration liability is Rs 10
Lakhs.
9
Besides, Section 24 of the Act mentions certain categories of suppliers, who shall be liable to take registration even if their
aggregate turnover is below the said threshold limit of 20 lakh rupees.

On the other hand, as per Section 23 of the Act, following persons are not required to take registration:
1) an agriculturist in respect of supply of his agricultural produce;
2) any person exclusively making supply of non-taxable goods and/or services (Nil Rated or Wholly Exempted);
3) Notified categories of persons*

* Sec. 23: Person not liable for registration:


Sec. 23(1)

* Sec 23(2): Notified categories of persons exempted from registration:


Supplies under RCM [supply of goods and/or services]
1. Supplier of goods / services making taxable supplies liable to tax under RCM; [N/N 5/2017-CT]

Author Note:
• Above exemption has been issued under Central Tax.
• Though no notification has been issued under Integrated tax, still it is practically considered that even inter-
state supplier is not required to take registration if his supplies are under RCM.

[Supplier of SERVICES]
1. Supplier making inter-state supplies of ‘services’ if ATO does not exceed Rs 20 lakhs / 10 lakhs. [N/N 10/2017-IT]

2. Supplier making intra-state supplies of ‘services’ through ECO (who is required to collect TCS) if ATO does not exceed
Rs 20 Lakhs / 10 Lakhs [N/N 65/2017-CT]

[Supplier of GOODS]
 Exemption to inter-state supplier of certain goods
N/N 3/2018 -IT -dated 22nd Oct, 2018 [Sec 20 of IGST Act read with Sec 23(2) of CGST Act, 2017]
New Notification specifies two categories of inter-state suppliers of certain goods who shall be exempt from taking
compulsory registration
10
Category-1 Inter-State supplies of handicraft goods as defined in the 39 Entries Suppliers
Explanation to N/N 21/2018-CT(Rate) dated 26th July, 2018 (the old are making inter-
notification) covered in state supplies
N/N 21/2018-CT (rate)- = An exemption notification issued u/Sec N/N of such goods
11 of CGST Act. It has granted partial exemption to certain 21/2018 – shall be
handicraft goods. CT (Rate) eligible for
“Handicraft Goods” means Goods predominantly made by hand even exemption.
though some tools or machinery may also have been used in the
process;
such goods are graced with visual appeal in the nature of
ornamentation or in-lay work or some similar work of a substantial
nature;
such goods possess distinctive features, which can be aesthetic,
artistic, ethnic or culturally attached and are amply different from
mechanically produced goods of similar utility.
.

Category-2 Inter-State supplies of the products mentioned in N/N 3/2018 - 28 Entries Suppliers
IT(Rate) - dated 22nd Oct, 2018 (the new notification) when made are making inter-
by the craftsman predominantly by hand even though some covered in state supplies
machinery may also be used in the process N/N of such goods
3/2018 –IT shall be
eligible for
exemption.

Conditions for availing above exemption:


• The aggregate value of such supplies, to be computed on all India basis, does not exceed Rs 20 lakhs/ 10 lakhs
(the amount of aggregate turnover above which a supplier is liable to be registered in the State /UT in accordance
with section 22 (1) read with clause (iii) of the Explanation to that section)
• Such persons shall obtain a PAN and generate an e-way bill in accordance with the provisions of rule 138 of the
CGST Rules, 2017. (** EWB= Document generated over EWB Portal for movement of goods)
.

 Exemption to Casual TP of certain goods


N/N 56/2018 -CT -dated 23rd Oct, 2018 [Sec 20 of IGST Act read with Sec 23(2) of CGST Act, 2017]
Author: New Notification exempt Casual TP from taking compulsory registration under 2 situations:
Category-1 Inter-State supplies of handicraft goods as defined in the 39 Entries Suppliers making
Explanation to N/N 21/2018-CT(Rate) dated 26th July, 2018 are covered inter-state
(the old notification) in N/N supplies of such
21/2018 – CT goods shall be
.

(Rate) eligible for


exemption.

Category-2 Inter-State supplies of the products mentioned in N/N 28 Entries Suppliers making
3/2018 -IT(Rate) - dated 22nd Oct, 2018 (the new are covered inter-state
notification) when made by the craftsman predominantly in N/N supplies of such
by hand even though some machinery may also be used in 56/2018 –CT goods shall be
the process eligible for
exemption.

Conditions for availing above exemption:


• Such persons are availing the benefit of N/N 3/2018 – IT
• The aggregate value of such supplies, to be computed on all India basis, does not exceed Rs 20 lakhs/ 10 lakhs
(the amount of aggregate turnover above which a supplier is liable to be registered in the State /UT in accordance
with section 22 (1) read with clause (iii) of the Explanation to that section)
• Such persons shall obtain a PAN and generate an e-way bill in accordance with the provisions of rule 138 of the
CGST Rules, 2017. (** EWB= Document generated over EWB Portal for movement of goods)

.
11
[Expected]
5. Discuss the registration requirement u/Sec 22(1) of CGST Act?
(CBEC FAQ)
Ans. As per Section 22 of the CGST/SGST Act 2017, every supplier who makes a taxable supply i.e. supply of goods and / or services
which are leviable to tax under GST law, and his aggregate turnover in a financial year exceeds the threshold limit of Rs 20
lakhs shall be liable to register himself in the State or Union territory from where he makes the taxable supply.
In case of eleven special category states (as mentioned in Article.279A(4)(g) of the Constitution of India), excluding State of J&K,
this threshold limit for registration liability is ten lakh rupees.

Note:
1. INTRA-STATE SUPPLY (of goods/ services)
.

Supply from single places of business


TO ATO Registration Remarks
Case-a) Product X – GST@Nil Rs 18,00,000 Rs 18,00,000 Not required Sec 23(1)(a)
Case-b) Product X – GST@Nil Rs 40,00,000 Rs 40,00,000 Not required Sec 23(1)(a)

Case-c) Product Y – GST@5% Rs 18,00,000 Rs 18,00,000 Not required Sec 22


Case-d) Product Y – GST@5% Rs 40,00,000 Rs 40,00,000 Required (on crossing threshold of 20 lakhs) Sec 22

Case-e) Product X – GST@Nil Rs 18,00,000 Rs 36,00,000 Required (on crossing threshold of 20 lakhs) Sec 22
Product Y – GST@5% Rs 18,00,000

[Expected]
A opened shop in Delhi in July, 2018. A is making intra-state supply of Product A (GST Exempt)
TO ATO Registration Remarks
July 2018 Non-taxable goods Rs 3,00,000 Rs 3,00,000 Not required Sec 23(1)(a)
Aug, 2018 Non-taxable goods Rs 4,00,000 Rs 7,00,000 Not required Sec 23(1)(a)
Sep, 2018 Non-taxable goods Rs 7,00,000 Rs 14,00,000 Not required Sec 23(1)(a)
Oct, 2018 Non-taxable goods Rs 8,00,000 Rs 22,00,000 Not required Sec 23(1)(a)
Nov 2018 Exemption withdrawn Required Sec 22
 Taxable goods Rs 2,00,000 Rs 24,00,000
.

Supply from multiple places of business


Applicable threshold:
 All place of business located in Non-SCS: Applicable threshold shall be 20 Lakhs
 All place of business located in SCS: Applicable threshold shall be 10 Lakhs
 Any one place of business located in SCS: Applicable threshold shall be 10 Lakhs

(a) Multiple place of business in different states (Deemed distinct person)


TO ATO Registration Remarks
1. Shop-1 (Rajasthan) Product X – GST@Nil Rs 40,00,000 Rs 58,00,000 Not required Sec 23(1)(a)
Shop-2 (Gujarat) Product X – GST@Nil Rs 18,00,000 Not required Sec 23(1)(a)

2. Shop-1 (Rajasthan) Product Y – GST@5% Rs 40,00,000 Rs 58,00,000 Required Sec 22


(on crossing threshold of 20 lakhs)
Shop-2 (Gujarat) Product Y – GST@5% Rs 18,00,000 Required Sec 22
(on crossing threshold of 20 lakhs)

3. Shop-1 (Rajasthan) Product X – GST@Nil Rs 40,00,000 Rs 58,00,000 Not Required Sec 23(1)(a)
(on crossing threshold of 20 lakhs)
Shop-2 (Gujarat) Product Y – GST@5% Rs 18,00,000 Required Sec 22
(on crossing threshold of 20 lakhs)

(b) Multiple place of business in same state


TO ATO Registration Remarks
1. Shop-1 Product X – Rs Rs Not required Sec
(Rajasthan) GST@Nil 40,00,000 58,00,000 23(1)(a)
Shop-2 Product X – Rs
(Rajasthan) GST@Nil 18,00,000

2. Shop-1 Product Y – Rs Rs Required single registration Sec 22


(Rajasthan) GST@5% 40,00,000 58,00,000 (on crossing threshold of 20 lakhs)
12
Shop-2 Product Y – Rs *Note: Registration Application shall mention one shop as
(Rajasthan) GST@5% 18,00,000 ‘principal place of business’ and other as ‘additional place
of business’.

Optionally, supplier can get each shop registered


separately. (if so registered separately, then each such
registered place shall be treated as ‘deemed distinct
person’ – Sec 25)
.

3. Shop-1 Product X – Rs Rs Required single registration Sec 22


(Rajasthan) GST@Nil 40,00,000 58,00,000 (on crossing threshold of 20 lakhs)
Shop-2 Product Y – Rs
(Rajasthan) GST@5% 18,00,000

2. INTER-STATE SUPPLY
Supply of Goods: Supply from single place of business: .

TO ATO Registration Remarks


Case-a) Product X – GST@Nil Rs 18,00,000 Rs 18,00,000 Not required Sec 23(1)(a)
Case-b) Product X – GST@Nil Rs 40,00,000 Rs 40,00,000 Not required Sec 23(1)(a)

Case-c) Product Y – Rs 18,00,000 Rs 18,00,000 Required (from beginning) Sec 24


GST@5%
Case-d) Product Y – Rs 40,00,000 Rs 40,00,000 Required (from beginning) Sec 24
GST@5%

Case-e) Product X – GST@Nil Rs 18,00,000 Rs 36,00,000 Required (from beginning) Sec 24


Product Y – Rs 18,00,000
GST@5%
.

Supply of Services: Supply from single place of business: .

TO ATO Registration Remarks


Case-a) Service X – Rs 18,00,000 Rs 18,00,000 Not required Sec 23(1)(a)
GST@Nil
Case-b) Service X – Rs 40,00,000 Rs 40,00,000 Not required Sec 23(1)(a)
GST@Nil

Case-c) Service Y – Rs 18,00,000 Rs 18,00,000 Not required Sec 23(2)


GST@5%
Case-d) Service Y – GST@5% Rs 40,00,000 Rs 40,00,000 Required (on crossing threshold of 20 lakhs) Sec 23(2) + Sec 24

Case-e) Service X – Rs 18,00,000 Rs 36,00,000 Required (on crossing threshold of 20 lakhs) Sec 23(2) + Sec 24
GST@Nil Rs 18,00,000
.
Service Y – GST@5%
.

6. What is aggregate turnover?


(CBEC FAQ)
Ans. The term aggregate turnover has been defined in Section 2(6) of CGST Act. Accordingly, ‘aggregate turnover’ means value of
all outward supplies (taxable supplies + exempt supplies** +exports + inter-state supplies) of a person having the same
PAN and it excludes taxes levied under central tax (CGST), State tax (SGST), Union territory tax (UTGST), integrated tax (IGST)
and compensation cess. Also, the value of inward supplies on which tax is payable under reverse charge is not taken into
account for calculation of ‘aggregate turnover’.

Note:
1. Supplies under RCM:
 Outward supply under RCM: Includible in ATO.
.

 Inward supply under RCM: Excludible from ATO

2. Non-GST taxes form part of Value of supply – Sec 15 of CGST Act:


 Tax under GST law: All types of GST (be it CGST, SGST, UTGST, IGST, GST Cess) shall be excluded in computation
of ATO.
.

 Tax under other law (like Excise on tobacco products): All other taxes shall be included in computation of ATO.
3. Aggregate turnover will be ‘aggregate of value as per Sec 15’:
 ATO = Aggregate of ‘Value (including non-GST taxes), but (excluding GST)
.
13
7. 'A' is a dealer in Computers and Computer parts having turnover of Rs. 8 lakh in a year. Does 'A' have to register
under GST?
(Press release)
Ans. Every supplier located in a State or Union territory, whose "aggregate turnover" in a financial year exceeds twenty lakh rupees,
is liable to be registered under GST. This limit of turnover for a special category State is ten lakh rupees. 'A', whose aggregate
turnover is only Rs. 8 lakh in a year, is therefore not liable to registration.

* Presumed that A is making intra-state supplies only and is located in state/UT other than Special Category States.

8. Mr A has a sole proprietorship firm and acts as a dealer of Khaitan in Delhi. Will he require registration under
GST laws if his sales are intra-state sales and not exceeding the threshold limit provided in Sec 22 of CGST Act?
(Press release)
Ans. Every supplier located in a State or Union territory, whose "aggregate turnover" in a financial year exceeds twenty lakh rupees,
is liable to be registered under GST. This limit of turnover for Delhi State* is twenty lakh rupees. 'A', whose aggregate turnover
is below Rs 20 lakhs in a year shall not be liable to registration.

Note:
1. Delhi is UT with State legislature. For GST purposes, it is treated as ‘State’.
2. Intra-state supplies in Delhi attracts CGST and Delhi GST.

9. X is a salaried employee (salary income being Rs. 90 lakh). Besides, he owns a residential property which is let
out for residential purposes (annual rent being Rs. 40 lakh).

In this case, aggregate turnover is Rs. 40 lakh*, rent received from residential property renting.
Further, since service of renting of residential property for residential purpose is exempt supply, X shall be exempt from
registration requirement as Sec 23 of CGST Act provides for exemption from registration where a person is exclusively engaged
in making exempt supplies.
Since X is not making supply of any taxable services**, he is not liable for registration.

Note:
1. Services rendered in course of employment are not ‘supply’. (being out of scope of supply – Sec 7(2) of CGST Act)
2. ATO is aggregate of ‘supplies’. Thus, salary income shall not form part of ATO.

** Taxable goods / services = Goods/services which are liable for payment of GST
Sale of Product A (GST Exempt) = Taxable Supply (as covers under GST law), but it is not a supply of taxable goods (as
goods are not liable to actual payment of GST)

[Expected]
10. SNP Pvt. Ltd., Coimbatore exclusively manufactures and sells product ‘Z’ which is exempt from GST vide
notifications issued under relevant GST legislations. The company sells ‘Z’ only within Tamil Nadu. The turnover
of the company in the PY was Rs. 55 lakh. The company expects the sales to grow by 20% in the current year.
Owing to the growing demand for the product, the company decided to increase its production capacity and
purchased additional machinery for manufacturing ‘Z’ on 01.07.20XX. The purchase price of the capital goods
was Rs. 20 lakh exclusive of GST @ 18%.
However, effective from 01.11.20XX, exemption available on ‘Z’ was withdrawn by the CG and GST @ 12% was
imposed thereon. The turnover of the company for the half year ended on 30.09.20XX was Rs. 40 lakh.
The Board of Directors of SNP Pvt. Ltd. wants to know whether they have to register under GST?
(CA Final - RTP May 2018)
Ans. In the given case, SNP Pvt. Ltd. was supplying non-taxable goods (exempt goods) till 31st Oct. From 1st Nov,
20XX, his goods became taxable (non-exempt).
Till the time his goods were non-taxable (exempt from tax), he was not liable for registration in terms of Sec 23(1)(a) of
CGST Act as it exempts person from registration if he is supplying goods which are exempt from tax. But once exemption is
withdrawn, such person shall not be entitled to benefit of Sec 23(1)(a). Now, he being intra-state supplier shall consider his
registration requirement in terms of Sec 22 of CGST Act.
In terms of Section 22(1) of the CGST Act, 2017, a supplier in non-special category states, is liable for registration in the
State if his aggregate turnover in a FY exceeds Rs. 20,00,000.
14
The ‘aggregate turnover’ has been defined u/Sec 2(6) of CGST Act to include, inter-alia (among other things), value of exempt
supplies. Therefore, as on date its product has become non-exempt, its ATO was 40 Lakhs. Therefore, the company needs to
take registration. Once so liable, it shall apply for registration within 30 days.

11. Mr. J has been involved in supplying taxable material in J&K*. In FY 20XX- 20XX, his turnover in the month of
Nov 20XX exceeded Rs. 12 lacs. Whether Mr. J is required to register under GST law?
(Study material- Adapted)
Ans. Mr J is supplying taxable material in J&K (i.e., place of supply is J&K). Presuming that Mr J is also located in J&K,
such supplies are ‘intra-state supply’ (as supplier of goods and place of supply both begin in same state- J&K).
Such person shall be liable for registration as per provisions of Sec 22 which mandates registration if his ATO
exceeds the specified limit. Since supplier is located in J&K, the applicable threshold for registration is 20 lakhs. Since his
ATO has not exceeded Rs. 20 lakhs, Mr. J is not required to register under GST law.

12. Mr C has agricultural farm in his hometown in Haryana and is also a trader of hosiery in Haryana. His sales from
sale of farm product (exempt supply) and hosiery trading (chargeable to GST) exceed Rs 20 lakhs. Does he
require registration under GST law?

Ans. Mr C is agriculturist but he is not exclusively engaged in supply of agricultural produce. Thus, he is not exempt from registration
u/Sec 23 of CGST Act*.
All his supplies are intra-state supplies and thus, Sec 22 of CGST Act governs his registration requirement. Since, his ATO
in the FY is exceeding Rs 20 lakhs (the threshold as applicable to him), he shall be required to take registration.

Note:
1. Sec 23 exempts ‘agriculturist’ from registration requirement to the extent of supply of produce arising out of cultivation of land.
2. Thus, trading activity of Mr C makes him liable to registration.
3. ATO includes ‘supply chargeable to tax (hosiery trading)’ as well as ‘supply not chargeable to tax (farm produce)’

[Imp.]
13. Which are the cases in which registration is compulsory? (Sec 24)
(CBEC FAQ)
Ans. The following categories of persons are required to be registered compulsorily irrespective of the threshold limit:
i) persons making any inter-State taxable supply,
Exception:
1. persons making inter-state supply of certain handicraft goods and craftmans goods if his ATO is upto Rs 20 lakhs (Rs
10 lakhs in special category states other that J&K)
2. inter-state supply of services if his ATO is upto Rs 20 lakhs (Rs 10 lakhs in special category states other that J&K);

ii) casual taxable persons making taxable supply


Exception: Casual TP making inter-state supply of certain handicraft goods and craftsman goods if his ATO is upto Rs 20
lakhs (Rs 10 lakhs in special category states other that J&K);

iii) non-resident taxable persons making taxable supply;

iv) persons who are required to pay tax* under reverse charge;
v) persons who are required to pay tax under section 9(5); (i.e., Third party ECO: liable to pay GST in case of 3
notified services)

vi) persons who supply goods/services, other than supplies specified under Section 9(5), through such e-commerce
operator who is required to collect tax at source under section 52; (i.e., Third party ECO (receiving payment from
receiver and handing over to connected supplier): in between, ECO is liable to pay TCS@1%)
Exception: Supplier of services supplying through ECO if his ATO is upto Rs 20 lakhs (Rs 10 lakhs in special category states
other that J&K);

vii) persons who are required to deduct tax under section 51 (whether or not separately registered under the Act);

viii) every electronic commerce operator; (i.e., Supplier who is also ECO in himself – liable to pay GST as supplier)
15
ix) persons who make taxable supply of goods or services on behalf of other taxable persons whether as an
agent or otherwise; (i.e., Agent = Agent who make further supply by raising invoice in his own name = Supplier in
itself)

x) Input service distributor (whether or not separately registered under the Act);

xi) every person supplying online information and data base access or retrieval services from a place outside
India to a person in India, other than a registered person; (i.e., Overseas supplier of OIDAR services to unregistered
Indian person)

xii) Notified person or class of persons. (i.e., presently, no one notified)

14. Mr. Gold runs a retail shop for handmade jewellery and is registered in Chennai. Mr. Gold is planning to sell the
jewellery at an exhibition in Mumbai, to be held from 1st January 2018 to 10th January 2018. Advise time with
regard to registration and payment of GST.
(ICMA Study material)
Ans. Mr. Gold should apply for registration as a casual taxable person. He shall apply atleast 5 days prior to the date of
commencement. Mr. Gold should also make an advance deposit of the estimated tax liability for the period from 1st January
2018 to 10th January 2018.

Casual TP = Advance Deposit of tax + Registration + Supply Business for maximum period of 90 days (+ 90 days)
Situation Casual TP or Remarks
Not
Mr. A = runs a retail shop for jewellery (GST Casual TP in Separate Reg - Compulsory Registration u/Sec 24
registered as normal TP in Delhi) Maharashtra Allotment Letter/ Consent letter granting permission to use
Planning to participate in Jewellery Exhibition (30 exhibition premises = Proof of place of business
days) in Maharashtra. He intends to sell jewellery .

from Jewellery Exhibition in Maharashtra. Registration shall be taken before making any taxable supplies
from exhibition
Application for Registration [Form GST REG-01]
ARN number (Temporary Reference No.)
Delhi Maha.
Deposit tax liability in advance (Estimated Net tax
Normal Casual liability = (Gross GST liability - ITC) - Circular No. 71/
TP TP 45/ 2018-GST (26th Oct, 2018)
Acknowledgment of Reg Application [Form GST REG-02]
Verification of Registration Application by PO
Grant of Registration [RC in From GST REG-06]
Post registration, effect taxable supply
RC becomes invalid on expiry of registration period (30
days in this case)
Effect of invalidity of registration
• Now, he becomes unregistered supplier in Maha.
• Shall not make any taxable supply (else will attract
penal consequences)

Exhibition over –registration cancellation


• Comply with cancellation provisions – Sec 29
• Cancellation (either he shall apply or PO will cancel
suo-moto)
• Submission of FINAL RETURN u/Sec 45
.

Mr. A = runs a retail shop for Paintings (GST Not a Casual He is not creating any place of business in Maharashtra.
registered as normal TP in Delhi) TP in No Need of taking any registration of Casual TP.
Planning to participate in Painting Exhibition (30 Maharashtra
Paintings can be send to art exhibition (and received back)
days) in Maharashtra. He intends to send paintings under cover of Delivery Challan [Rule 55]
only for exhibition/display purposes – not for making
sales therefrom – Art gallery will exhibit paintings
.

Delhi Maha.
Normal Casual TP
TP
16
.

Mr. A = runs a retail shop for garments (GST Not a Casual


TP in Circular No. 71/ 45/ 2018-GST
registered as normal TP in Delhi)
Maharashtra (26th Oct, 2018)
Planning to participate in Garments Exhibition
(210 days) in Maharashtra. He intends to sell Issue: Long running exhibition (more than 180 days) –
garment from Garment Exhibition in Maharashtra. whether Casual TP registration is possible?
Registration
as Normal TP No – such person has to get themselves registered as
‘normal TP’
in
Maharashtra [Reason: Sec 27 : Casual TP registration can be valid for
Delhi Maha. a period of 90 days and extension by another 90 days
.

Normal Casual TP Registration as Normal TP (no need of advance deposit of


TP Normal TP tax)
.
Application for Registration [Form GST REG-01]-
within 30 days of date of his becoming liable for
registration in Maha
ARN number (Temporary Reference No.)
Acknowledgment of Reg Application [Form GST REG-02]
Verification of Registration Application by PO
Grant of Registration [RC in From GST REG-06]
.

..

15. M/s X Ltd is an advertising company located in Delhi and is registered as a normal taxable person there. Now,
they have secured an assignment to manage digital marketing for the Some Festival, which will take place in
Mumbai, Maharashtra. This will require M/s X Ltd. to place some resources in Mumbai until the festival is over.
Advise M/s X Ltd. to obtain for separate registration in the State of Maharashtra.
(ICMA Study material)
Ans. In this case, since M/s X Ltd does not have too many assignments coming from Mumbai, they can register as a Casual Taxable
Person in Maharashtra for 90 days.

Casual TP or Non-Resident TP: Registration is only for limited period


Explain how long will the registration certificate issued to a casual taxable person and non- resident taxable
person be valid?
(CA Inter – Mock Test Paper – May 2018)
The certificate of registration issued to a “casual taxable person” or a “non-resident taxable person” shall be initially valid for
a maximum period of 90 day. However, 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.

[Imp.]
16. State which of the following suppliers are liable to be registered:
(a) Agent supplying goods* on behalf of some other taxable person and its aggregate turnover does not exceed
Rs. 20 lakh during the financial year.

(b) An agriculturist who is only engaged in supply of produce out of cultivation of land.
(ICAI Final Study Material)
Ans. (a) Section 22 stipulates that every supplier becomes liable to registration in the State or UT if his aggregate turnover exceeds
Rs. 20 lakh in a State/UT [Rs. 10 lakh in Special Category States, except J&K] in a financial year. However, as per section
24, a person supplying 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 Rs. 20 lakh during the financial year.

* Presumed, his supplies are in nature of intra-state.

Note:
Registration of Agent – whether under section 22 or Sec 24.
1. Agent of TAXABLE PERSON (GST registered entity) – Such agent is required to take Compulsory registration u/Sec
24 (threshold limit is irrelevant for agent). The compulsory registration has been prescribed to make sure that supply
chain from principal to agent and from agent to buyer remains interlinked with continued flow of ITC.

2. Agent of NON- TAXABLE PERSON (non-GST registered entity) – Such agent is required to take registration u/Sec 22
(i.e., agent required to take registration only if his ATO exceeds the threshold limit).
• Agent ATO may exceed as agent may be working for many principals.
17
(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.

[Expected]
17. Mr. C of Calicut is trading on his own goods and also acting as an agent of Mr. B of Bengaluru. Mr. C turnover in
the financial year 20XX-X1 is Rs. 12 lakhs in his own account and Rs. 9 lakhs on behalf of principal. Whether Mr.
C is liable to take registration under GST law.
(Study material)
Ans. As per explanation 1 of Sec. 22(1) in computing the total turnover, both the value of supply on his own account that is Rs. 12
lakhs and on behalf of principal Rs. 9 lakhs will be aggregated. Hence, the aggregate turnover will be Rs. 21 lakhs. Mr. C is
liable to take registration under the GST law.

Note:
* Presumed, his supplies are in nature of intra-state.
* Mr B (principal) is non-taxable person (an entity not liable to take GST registration).

[Imp]
18. Pure Oils, Delhi has started the supply of machine oils and high speed diesel in the month of April, 20XX. The
following details have been furnished by it for the said month: -
Sl. Particulars Rs.*
No.
(i) Supply of machine oils in Delhi 2,00,000
(ii) Supply of high speed diesel in Delhi 4,00,000
(iii) Supply made through Fortis Lubricants - an agent of Pure Oils in Delhi 3,75,000
(iv) Supply made by Pure Oils from its branch located in Punjab 1,80,000
*excluding GST
Determine whether Pure Oils is liable for registration.
Will your answer change, if Pure Oils has a branch in Himachal Pradesh from where he supplies machine oils
amounting to Rs. 2,50,000?
(CA Inter - RTP May 2018)
Ans. Computation of aggregate turnover
Computation of aggregate turnover for the month of April, 20XX as per provisions of GST Law (Sec 2(6) of CGST Act):
Particulars Amount (in Rs.)
(i) Supply of machine oils in Delhi [WN-1] 2,00,000
(ii) Supply of high speed diesel in Delhi [WN-2] 4,00,000
(iii) Supply made through Fortis Lubricants - an agent of Pure Oils in Delhi [WN-3] 3,75,000
(iv) Supply made by Pure Oils from its branch located in Punjab [WN-4] 1,80,000
Aggregate Turnover 11,55,000
Working Notes:
1. Supply of machine oil in Delhi is intra-state supply of goods which is taxable under GST law. It shall be includible in
‘aggregate turnover’.
2. Supply of HSD in Delhi is intra-state supply of goods which is non-taxable under GST law. Though non-taxable, it shall be
includible in ‘aggregate turnover’.
3. Transfer of goods to agent for further supply (sale) is also treated as ‘supply’ though such transfer does not include any
consideration. Sec 7(1)(c) read with Schedule I (Para 3) covers transfer of goods to agent. Further, since goods have been
transferred to Agent in Delhi, such transfer is an intra-state supply of goods which is taxable under GST. It shall be includible
in ‘aggregate turnover’.
4. Supply is made from branch office in Punjab. Under GST law, such branch office is treated as establishment of a different
person. Thus, Head Office (Delhi) and Branch Office (Punjab) are treated as ‘deemed distinct persons (establishment of
different persons)’ under GST law. In absence of specific information, it is presumed that Punjab branch is also making
‘intra-state’ supply. Since ATO is computed on all India basis (establishments operating with same PAN), it shall be includible
in ‘aggregate turnover’.
18
Registration Requirement of Pure Oils
All the supplies made by Pure Oils are intra-state supplies and thus, his liability for registration shall be governed by Sec 22 of
the CGST Act which provides that every supplier is liable to be registered in the State/UT from where he makes a taxable supply
of goods or services or both, if his aggregate turnover in a financial year exceeds Rs. 20 lakh (Rs 10 lakhs in case he is making
supplies from special category states other than J&K).
Since the aggregate turnover is not exceeding Rs. 20 lakh, Pure Oils is not liable to be registered.

In case where Pure Oils has a branch in Himachal Pradesh from where he supplies machine oils amounting to
Rs. 2,50,000, then aggregate turnover in that case will be 14,05,000 (11,55,000 + 2,50,000). Further, in this situation, the
applicable threshold for registration will be Rs. 10 lakh as Himachal Pradesh is one of the specified Special Category States.
Thus, in such situation Pure Oils, Delhi shall be liable to be registered.

19. Mr. X a dealer (situated in Delhi) dealing with Intra State supply of goods and services has place of business in
India furnished the following information in the financial year 20XX-X1:
1. Sale of taxable goods by Head Office located in Chennai for Rs. 1,00,000
2. Supply of taxable services by Branch office at Bengaluru for Rs. 50,000
3. Supply of goods exempted from GST Rs. 10,000
4. Export of goods for Rs. 2,00,000
Whether Mr. X is liable for Registration ?
(ICMA Study material)
Ans. Statement showing computation of aggregate turnover in a Financial Year 20XX-X1
Particulars Value in Rs.
Sale of taxable goods by Head Office located in Chennai (*presumed to be intra-state supply) 1,00,000
Supply of taxable services by Branch office at Bengaluru (*presumed to be intra-state supply) 50,000
Supply of goods exempted from GST (*presumed to be intra-state supply) 10,000
Export of goods (Export is considered as inter-state supply under GST law) 2,00,000
Aggregate turnover 3,60,000
Though aggregate turnover is not exceeding Rs. 20 lakhs, but since he is engaged in exports which are inter-state supplies, his
registration falls under section 24 which provides for compulsory registration (i.e., no threshold limit of 20 Lakhs).

Note:
1. Export (inter-state supplies)
2. Export supplies are zero-rated in terms of Sec 16 of IGST Act.
3. For availing benefit of zero-rating provided by Sec 16, registration is mandatory. [Sec 16(3) of IGST Act gives benefit to
‘registered person’]

20. Mr B has ATO of Rs 10 lakhs in a FY from the State of UP only, through its sole proprietorship firm. He has a
property located in Delhi, which is currently in dispute and has engaged lawyer for representing his case in
dispute. Will Mr B be required to register himself u/sec 24 of the CGST Act, considering persons required to pay
under RCM?

Ans. Mr B is a business entity making intra-state supplies in UP only. It is unregistered, as his ATO is not exceeding Rs 20 lakhs in a
FY.
Now, it has received services legal services which attracts reverse charge and thus, making recipient liable to pay GST.
Presuming that legal services have been sought in relation to business, such service is exempt from payment of GST as Mr A
is a business entity with ATO not exceeding Rs 20 lakhs. Such service being exempt, the recipient, Mr B, is actually not required
to pay GST. Thus, he is not required to take compulsory registration u/Sec 24 of CGST Act.

Note:
1. Legal Services provided by advocate/ advocate firm are subject to RCM – Sec 9(3) of CGST Act / Sec 5(3) of IGST Act
• However, exemption to legal services has also been provided to legal services if provided to business entity having ATO
not exceeding 20 Lakhs (Rs 10 Lakhs, in case of SCS) in the preceding FY.
2. In case of supplies attracting RCM, recipient is required to take compulsory registration u/Sec 24 only when such recipient
is required to pay GST.
3. If supply is exempt and thus, recipient not required to pay GST, then he is not required to take registration also.
19
21. With the help of the following information in the case of M/s. Jayant Enterprises, Jaipur (Rajasthan) for the FY,
determine the aggregate turnover for the purpose of registration under CGST Act, 2017.
Particulars Amount in (Rs.)
(i) Sale of diesel on which Sale Tax (VAT) is levied by Rajasthan Government 1,00,000
(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 on which GST is to be paid by recipient under reverse charge. 1,00,000
.

All the above amounts are excluding GST.


You are required to provide reasons for treatment of various items given above.
(CA Final May 2018 – 5 marks)
Ans. Computation of Aggregate Turnover for the Purpose of registration —
Sale of diesel on which Sale Tax (VAT) is levied by Rajasthan Government 1,00,000
(Presently, GST is not leviable on petroleum products and hence such supply is non-taxable supply.
Exempt supply includes non-taxable supply. Aggregate turnover includes exempt supplies)
Export supply to England (U.K.) 5,00,000
(export supply is inter-state supply and thus, includible in ATO. Though zero-rated and not
considered exempt supply, they are still includible in aggregate turnover)
Supply to its own additional place of business in Rajasthan. Nil
(Assessee in located in Rajasthan. The additional place of business is also in Rajasthan. Supply
made without consideration to units within same state (unless separately registered) is not a supply
and hence, not includible in aggregate turnover).
Outward supply on which GST is to be paid by recipient under reverse charge. 1,00,000
(Aggregate turnover includes all supplies by supplier – irrespective of whether there are subject to
forward charge or reverse charge. Inward supplies is excludible even if tax on value of inward
supplies is payable by a person on reverse charge basis. However, outward supplies shall be
included even if tax thereon is payable by recipient)
Total aggregate turnover 7,00,000

Additional Discussion (not requirement of question)


Registration requirement of Jayant Enterprises (normal supplier of goods):
• Applicable threshold for registration for units located in Rajasthan = 20 lakhs – Sec 22 of CGST Act.
• Though aggregate turnover is not exceeding Rs. 20 lakhs, but since he is engaged in exports which are inter-state
supplies, his registration falls under section 24 which provides for compulsory registration (i.e., no threshold limit of 20
Lakhs).

22. Rajesh Dynamics, having its head office in Chennai, carries on the following activities with respective turnovers
in a Financial Year :
Rs.
Supply of petrol at Chennai 18,00,000
Value of inward supplies on which tax is payable on reverse charge basis 9,00,000
Supply of transformer oil at Chennai 2,00,000
Value of taxable supplies at Bengaluru branch 13,00,000
It argues that it does not have taxable turnover crossing threshold limit of Rs. 20,00,000 either at Chennai or
Bengaluru.
Decide based on the above facts :
(i) The aggregate turnover of Rajesh Dynamics.
(ii) All conditions that fulfil the requirements for registration under CGST Act, 2017 in the given
circumstances.
(CA Final May 2018 - 4 Marks)
Ans. Rajesh Dynamics is supplier making supplies from multiple states – Chennai (Tamil Nadu), Bengaluru (Karnataka). Head office
is in Chennai (Tamil Nadu), while its branch is in Bengaluru (Karnataka). The applicable threshold for registration as specified
in Sec 22 of CGST Act shall be Rs 20 Lakhs.
20
Computation of aggregate turnover of Rajesh Dynamics
Particulars Rs.
Supply of petrol at Chennai (non-taxable turnover) 18,00,000
[Being a non -taxable supply, it is an 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 (taxable turnover) Nil
[Inward supplies does not constitute turnover of supplier – these being not his supplies]
Supply of transformer oil at Chennai (taxable turnover) 2,00,000

Value of taxable supplies of Bengaluru Branch (*presumed to be intra-state supply) (taxable 13,00,000
turnover)
Aggregate turnover (as per Sec 2(6) of CGST Act) 33,00,000

Validity of argument as to threshold of 20,00,000 not being crossed at either of place of business
Rajesh Dynamics is liable to be registered in Chennai (Tamil Nadu) and also in Bengaluru (Karnataka) as his aggregate turnover
(computed on PAN India basis) in a financial year exceeds Rs. 20 lakh.
Rajesh Dynamics’ argument that it is not liable to registration since the threshold exemption of Rs. 20 lakh is not being crossed
either at Chennai, Bengaluru is not correct as ATO is computed on all India basis and not State -wise.
Liability to take GST registration
However, 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.


23. AB Pvt. Ltd., Pune provides house-keeping services. The company supplies its services exclusively through an e-
commerce website owned and managed by Hi-Tech Indya Pvt. Ltd., Pune. The turnover of AB Pvt. Ltd. in the
current financial year is Rs. 18 lakh.
Advise AB Pvt. Ltd. as to whether they are required to obtain GST registration. Will your advice be any different
if AB Pvt. Ltd. sells readymade garments exclusively through the e-commerce website owned and managed by
Hi-Tech Indya Pvt. Ltd.?
(CA Final - MTP March 2018- 6 Marks)
Ans. AB Pvt Ltd. is providing house keeping services and also it is not liable for registration under section 22 as it is located in
Maharashtra (Pune) and its TO not exceeding 20 Lakhs in a FY.
Sec 9(5) of CGST Act which provides that in respect of notified services, ECO through which notified services are supplier
shall be treated as supplier and it shall be liable for paying GST. House keeping is one of notified service when provided by
supplier who is not liable for registration u/Sec 22(1) as its ATO not exceeding Rs 20 lakhs. Thus, AB Pvt Ltd is providing notified
services and accordingly, ECO-Hi Tech Indya Pvt Ltd. shall be deemed supplier liable for paying GST. Hence, AB Pvt. Ltd shall
not be liable to take GST registration, rather ECO-Hi Tech Indya Pvt Ltd. shall be liable to take compulsory registration under
section 24.

Registration requirement if AB Pvt ltd. is supplying goods through ECO


If AB Pvt. Ltd. supplies readymade garments through ECO, then such supply cannot be notified under section 9(5) as only
supplies of services are notified under that section. Therefore, in such case, AB Pvt. Ltd. will retain its status of supplier. The
role of ECO shall be restricted to collection of tax at source under section 52. However, its registration requirement shall fall
under section 24 (i.e., compulsory registration) as it is making supplies ECO who is liable to collect TCS under section 52.

24. Who is an ISD?


(CBEC FAQ)
Ans. ISD stands for Input Service Distributor and has been defined under Section 2(61) of the CGST Act. It is basically an office
meant to receive tax invoices towards receipt of input services and further distribute the credit to supplier units (having the
same PAN) proportionately.
Author :
1. ISD = Office of recipient supplier who distributes credit among different units of supplier (having same PAN as that of office)
2. Working Mechanism of ISD
 ISD receives tax invoices towards receipt of input services. It avails credit
 It distributes tax paid on such input services to multiple units of supplier (which are having same PAN as that of the said ISD).
For that purpose, it requires compulsory registration (u/Sec 24) so that it can issue ‘ISD invoice’ distributing the ITC.
21
25. Will ISD be required to be separately registered other than the existing tax payer registration?
(CBEC FAQ)
Ans. Yes, the ISD registration is for one office of the taxpayer which will be different from the normal registration.

26. Can a tax payer have multiple ISDs?


(CBEC FAQ)
Ans. Yes. Different offices of a tax payer can apply for ISD registration.

Note:
1. X Ltd. – having four regional offices and 12 branch offices
• Each Regional office is controlling 3 branches under it.
• Each such regional office can be registered as ISD.
• Each regional officer can distribute ITC to branches working under it.

Registration: Basic requirements

27. Is possession of a Permanent Account Number (PAN) mandatory for obtaining a Registration?
(CBEC FAQ)
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 Final Study Material)
Ans. Yes. As per Section 25(6) of the CGST Act every person shall have a Permanent Account Number issued under the Income
Tax Act,1961 in order to be eligible for grant of registration.
However a person required to deduct tax under Section 51, may have, in lieu of a PAN, a Tax Deduction and
Collection Account Number issued under the said Income Tax Act, in order to be eligible for grant of registration. (proviso
to the aforesaid section 25(6))
Also, PAN is not mandatory for a non- resident taxable person who may be granted registration on the basis of some other
documents (self-attested copy of valid passport, tax identification number or any other unique number issued to foreign entity
in his country) (section 25(7))

Registration: Premises to be registered

28. If a person is operating in different states, with the same PAN number, whether he can operate with a single
Registration?
(ICAI Final Study Material) (CBEC FAQ)
Ans. 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 is liable to get registered in terms of Section 22(1) of the CGST Act.

29. Is there an option to take centralized registration for services under GST Law?
(ICAI Final Study Material) (CBEC FAQ)
Ans. No, the taxpayer has to take separate registration in every state from where he makes taxable supplies.
Note:
1. Under erstwhile ST law, centralized registration was permissible.
2. But, GST law does not permit centralized registration.

[Expected]
30. If the taxpayer has different business verticals in one state, will he have to obtain separate registration for each
such vertical in the state?
(ICAI Final Study Material) (CBEC FAQ)
Ans. No, however the taxpayer has the option to register such separate business verticals independently in terms of the proviso to
Section 25(2) of the CGST Act, 2017.
22

Sec 2 (18) Business Vertical


“Business Vertical” means a distinguishable component of an enterprise that is engaged in the supply of individual goods
or services or a group of related goods or services which is subject to risks and returns that are
different from those of the other business verticals.
Explanation.—For the purposes of this clause, factors that should be considered in determining whether goods or
services are related include—
(a) the nature of the goods or services;
(b) the nature of the production processes;
(c) the type or class of customers for the goods or services;
(d) the methods used to distribute the goods or supply of services; and
(e) the nature of regulatory environment (wherever applicable), including banking, insurance, or public utilities;
Author :
1. Taxable person operating from different premises in different state: Separate registration is required
.

2. Taxable person operating from different premises in the same state: Single Registration is required
 However, if such taxable person is having more than one business vertical in a state can consider obtaining more
than one registration in that state for each of different verticals. This is optional facility for the taxable person.
Unit-1 Unit-2 ATO Remarks Separate Registration
Delhi Maharashtra 30 lakhs Different business verticals Mandatory Separate Registration
Delhi Maharashtra 30 lakhs Not different business verticals Mandatory Separate Registration
Delhi Delhi 30 lakhs Different business verticals Separate Registration not required
- Optionally, separate registration may be
taken
Delhi Delhi 30 lakhs Not different business verticals Separate Registration not required
Mandatory Single registration

31. At the time of registration will the assessee have to declare all his places of business?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. The principal place of business and place of business have been separately defined under section 2(89) & 2(85) of the
CGST/SGST Act 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.

32. Whether a person having multiple business verticals in a state can obtain different registrations?
(CBEC FAQ)
Ans. Yes. In terms of Section 25, a person having multiple business verticals in a State may obtain a separate registration for each
business vertical, subject to such conditions as prescribed in the registration rules.

Registration: Voluntarily Registration & Suo-moto registration

[Imp.]
33. Is there a provision for a person to get himself voluntarily registered though he may not be liable to pay GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. In terms of Section 25 (3), a person, though not liable to be registered under Section 22 or Section 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.

Note:
VOLUNTARILY REGISTRATION:
Concept In general, for persons having ATO in excess of Rs 20 lakhs/ 10 lakhs, GST registration is mandatory.
For others, voluntary registration is possible and there are good reasons to be registered even when you
are not required to register.
• Person carrying on or intends to carry on business of supply of goods and/or services may apply for
voluntarily business.
Effect Voluntarily Registered Supplier = Taxable Person = Liable to pay GST
• He also becomes liable to submit returns.
• Being registered person, he can also claim ITC (subject to fulfillment of all conditions related to ITC)
23
Basic Benefit  Inverted tax structure where ITC availment is more beneficial: In case of inverted tax structure, its
beneficial to get registered and pay tax liability and avail ITC.
 Customers insistence: Customers may prefer, or even insist on, dealing only with other registered business.
This is particularly when customer is GST registered as such customer will fall under reverse charge if his
vendor/supplier is unregistered. – Sec 9(4) of CGST Act] – (presently, RCM liability created by Sec 9(4) is
exempt and hence, this no longer is reason for taking voluntarily registration)
 Creating good self-impression: Some business such as contractors may decide to register to avoid an
embarrassment caused by revealing that their annual taxable supply is below the threshold (Threshold limit
is 20 lakhs generally).
Lock-in period There is lock-in period of 1 year from the effective date of registration
[Deleted by N/N 3/2018-CT- dated 3rd Jan, 2018]
Earlier, there was lock-in period on voluntary registered person. But now, that restriction as to de-
registration has been removed. [Rule 20 (application for cancellation of registration) has been amended]

Suo-moto If supplier after taking voluntarily registration failed to commence business within 6 months from date of
cancellation by registration, PO may can cancel his registration.
GST Officer

34. Whether the Department through the proper officer, can suo-moto proceed to register a person under GST?
(ICAI Final Study Material) (CBEC FAQ) (CA Inter- MTP April 2018)
Ans. Yes. In terms of Section 25(8), where a person who is liable to be registered under this Act fails to obtain
registration, the proper officer may, without prejudice to any action which may be taken under this 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 relevant CGST Rules,
2017.

Note:
Suo-Moto Registration – Sec 25(8) + Rule 16 of CGST Rules, 2017
PO Will register suo-moto – will pass order for that purpose (Form GST REG-12)
• Temporary Registration
• Registration effective from date of order granted registration (not back-dated registration).
Action by He agrees to his registration
concerned • Within 90 days, proceed for registration (registration application – GST REG-01)
person
• GSTIN will be granted.
• GSTIN granted shall be effective w.e.f. date of suo-moto registration order passed by PO.
.

He does not agree to his registration


• Appeal to appellate authority
o Appeal lost – Now, he shall for registration within 30 days from date of issuance of order of appellate
authority
o Appeal won– Registration formality not required to be complied with.

Registration Procedure

[Expected]
35. What is the time limit for taking a Registration under GST?
(CBEC FAQ)
OR
State the time-period within which registration needs to be obtained in each of the following independent cases:
(a) Casual taxable person
(b) Person making inter-State taxable supply
(ICAI Study Material)
24
Ans. Section 25(1) of the CGST Act stipulates the time-period within which registration needs to be obtained in various cases. It
provides the following time-limits:
In case of a person who is liable to be registered under section 22 or section 24, registration needs to be obtained
within 30 days from the date on which he becomes liable to registration
In case of a casual taxable person or a non-resident taxable person, registration needs to be obtained at least 5 days
prior to the commencement of business
In view of the aforesaid provisions:
(a) A casual taxable person must obtain registration at least 5 days prior to the commencement of its business.
(b) As per section 24 of the CGST Act, person making inter-State taxable supply is liable to get compulsorily registered.
Therefore, such person must obtain registration within 30 days from the date on which he becomes liable to registration.

36. What will be the time limit for the decision on the on-line registration application?
(ICAI Final Study Material) (CBEC FAQ)
Ans. If the information and the uploaded documents are found in order, the State and the Central authorities shall have to respond
to the application within 3 working days.
If application is complete in all respect, registration shall be granted within 3 days.
It there is any deficiency or discrepancy in application, then SCN communicating any deficiency or discrepancy shall be
issued within such time, then the applicant will have to remove the discrepancy / deficiency within 7 days of such
communication. Thereafter, for either approving the application or rejecting it, the State and the Central authorities will have
7 days from the date when the taxable person communicates removal of deficiencies.

In case no response is given by the departmental authorities within the said time line (3 days / 7 days), the portal shall
automatically generate the registration.

37. What will be the time of response by the applicant if any query is raised in the online application?
(ICAI Final Study Material) (CBEC FAQ)
Ans. If during the process of verification, one of the tax authorities raises some query or notices some error, the same shall be
communicated to the applicant and to the other tax authority through the GST Common Portal within 3 working days. The
applicant will reply to the query/rectify the error/ answer the query within a period of seven days from the date of receipt of
deficiency intimation.
On receipt of additional document or clarification, the relevant tax authority will respond within seven working days from the
date of receipt of clarification.

38. Whether the proper officer can reject an application for Registration?
(CBEC FAQ)
Ans. Yes. In terms of section 25(10) of the CGST Act, the proper officer can reject an application for registration after due verification.

39. What is the process of refusal of registration?


(CBEC FAQ)
Ans. In case registration is refused, the applicant will be informed about the reasons for such refusal through a speaking order. The
applicant shall have the right to appeal against the decision of the Authority. As per section 26(2) of the CGST Act, any rejection
of application for registration by one authority (i.e. under the CGST Act / SGST Act) shall be deemed to be a rejection of
application for registration by the other tax authority (i.e. under the SGST Act / UTGST Act/ CGST Act).

Note:
Communication related to the application disposal:
The applicant shall be informed of the fact of grant or rejection of his registration application through an e-mail and SMS by the
GST common portal. Jurisdictional details would be intimated to the applicant at this stage.

40. Can the registration certificate be downloaded from the GSTN portal?
(CBEC FAQ)
Ans. In case registration is granted; applicant can download the Registration Certificate from the GST common portal.

41. Who is a Casual Taxable Person?


(CBEC FAQ)
25
Ans. Casual Taxable Person has been defined in Section 2 (20) of the CGST Act meaning a person who occasionally undertakes
transactions involving supply of goods and/or services in the course or furtherance of business, whether as
principal, or agent or in any other capacity, in a State or a Union territory where he has no fixed place of business.

[Expected]
42. Who is a Non-resident Taxable Person?
(CBEC FAQ)
Ans. In terms of Section 2(77) of the CGST Act, a non- resident taxable person means any person who occasionally undertakes
transactions involving supply of goods and/or services whether as principal or agent or in any other capacity, but who
has no fixed place of business or residence in India.

Illustration International Trade Fair is organized in Delhi. Sellers from Delhi, other states as well as from other countries participate
.
therein, they set up their stall therein and make sales therefrom.
Category of Sellers Category of Supplier Registration
CTP, NRTP, Others
Suppliers from Other Having no fixed place of Casual Taxable Person GST registration - u/ Sec 24
States / UT business in Delhi State from (*no threshold exemption)
where they are affecting the
supply (India)
.

Suppliers from Other Having no fixed place of NR Taxable Person GST registration - u/ Sec 24
Countries (say, Mr business in entire INDIA (*no threshold exemption)
John from USA)

Casual Taxable Person (CTP) – Sec 2 (20) Non-Resident Taxable Person (NRTP) – Sec 2 (77)
Supplier who does not have any fixed place of business Supplier who does not have any fixed place of business or
in that taxable territory in which it undertakes taxable residence in India.
supply.
Registration provisions Registration provisions
• Compulsory registration u/Sec 24 of CGST Act • Compulsory registration u/Sec 24 of CGST Act
No threshold exemption to CTP No threshold exemption to NRTP
.
.

• Registration before commencement of business and with • Registration before commencement of business and with
advance payment of tax advance payment of tax
• Normal Registration Application: GST REG-01 • Separate Simplified Registration Application: GST REG-
09
• PAN based GST Registration granted • GST Registration granted without PAN

Optional Composition Scheme Optional Composition Scheme


• It is not available to Casual TP. • It is not available to Non-Resident TP.
Return provisions Return provisions
• Normal Monthly Statements/ Returns: GSTR- 1, • Separate Simplified Return: GSTR-5
GSTR-2 and GSTR-3 • Also, ANNUAL RETURN is not required to be filed.
• However, ANNUAL RETURN is not required to be filed.
ITC provisions ITC provisions
• Can claim ITC of all inward supplies (be it domestic/ • Can claim ITC only in respect of goods* imported by him
imported inputs, capital goods or input services) [All other credits blocked for him – Sec 17(5) of CGST]
.

43. What is the validity period of the Registration certificate issued to a Casual Taxable Person and non- Resident
Taxable person?
(ICAI Final Study Material) (CBEC FAQ) (CA Final – MTP Aug 2018- 4 marks)
Ans. 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 ninety 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
ninety days by a further period not exceeding ninety days.
26
44. Is there any Advance tax to be paid by a Casual Taxable Person and Non-resident Taxable Person at the time of
obtaining registration under this Special Category?
(CBEC FAQ)
Ans. Yes. While a normal taxable person does not have to make any advance deposit of tax to obtain registration, a casual taxable
person or a non-resident taxable person shall, at the time of submission of application for registration is required, in terms of
Section 27(2) read with proviso thereto, 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 is sought.
If registration is to be extended beyond the initial period of ninety 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 ninety days is being sought.

45. Mr. X of Mumbai is considering to participate in the jewellery exhibition at Trade Fair in Delhi, which is organised
every year in the month of February. Mr. X 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. X.
You are required to examine whether any advance tax is to be paid by Mr. X at the time of obtaining registration?
(CA Final – Test Series- May 2018) (CA Inter- MTP April/Aug 2018)
Ans. Yes, advance tax is to be paid by Mr. X at the time of obtaining registration. Since Mr. X 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.
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 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 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.
.

 Expected
Circular No. 71/ 45/ 2018-GST Dated 26th Oct, 2018
Issue: Whether the amount required to be deposited as advance tax while taking registration as a Casual TP (CTP) should be
100% of the estimated gross tax liability or the estimated tax liability payable in cash should be calculated after deducting
the due eligible ITC which might be available to CTP?
Clarification
1. It has been noted that while applying for registration as a casual taxable person, the FORM GST REG-1 (S. No. 11)
seeks information regarding the “estimated net tax liability” only and not the gross tax liability.
2. It is accordingly clarified that the amount of advance tax which a Casual TP is required to deposit while obtaining
registration should be calculated after considering the due eligible ITC which might be available to such taxable person.
.

Registration: GSTIN or UIN

46. Whether the Registration granted to any person is permanent?


(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes, the registration Certificate once granted is permanent unless surrendered, cancelled, suspended or revoked.

[Expected]
47. Is it necessary for the UN bodies to get registration under GST?
(ICAI Final Study Material) (CBEC FAQ)
Ans. Yes. In terms of Section 25(9) of the CGST Act, certain specified entities (UN bodies, Consulate or Embassy of foreign
countries etc) and certain notified entities* would be required to obtain a unique identification number (UIN) from
the GST portal.

Such entities are entitled for claiming refund of taxes paid by them on their inward supplies. This UIN will be
needed for claiming refund of such taxes.

Note:
27
1. Such entities are entitled to claim refund of GST paid by them on their inward supplies.- Sec 55 of CGST Act.
.

Supplier holding GSTIN Entities holding UIN


Entities Entities mention in Sec 22 / Sec 24 Entities mentioned in Sec 55 (a condition for obtaining
covered refund)
Principal Discharge of liability Claiming refund of taxes paid on inward supplies
Objective
Registration Procedure for registration Procedure for registration
• Sec 25(1) • Sec 25(9)
• Rule 8, 9 & 10 of CGST Rules • Rule 17 of CGST Rules
/

Registration Form GST REG-01 Form GST REG-13


Application (application required to be filed by (application required to be filed when such entities
applicant within 30 days of becoming decide to claim refund)
liable to take registration) • Due to delays in availability of Form GST REG-13 on
common portal, alternative mechanism is developed

• UIN entities to approach Protocol Division of


Ministry of External Affairs which will facilitate grant
of registration in coordination with CBIC and GSTN
• Rule 17(2) provides that PO may, after receiving
recommendation from the Ministry of External Affairs,
GOI, assign UIN to such entity within 3 working days.

Centralized registration allowed (to specified


State wise registration is mandatory entities) [N/N 75/2017- dated 29th Dec, 2017]
Facility of single UIN is optional and multiple UIN’s can be
opted for
• CG will be responsible for all administrative compliances in
respect of such entities
.

Administrative The taxpayer (GSTIN Holder) will be Central Government will be responsible for all
Officer assigned either to center administration or to administrative compliances in respect of such entities
state administration. (UIN Holder).
[Based on turnover, taxpayer will be assigned] • A nodal officer has been designated in each State.
Turnover Assigned to • Application for refund claim may be submitted before
the designated Central Tax nodal officers in the State
28
TO > 1.5 Cr 50% (Centre) in which the UIN has been obtained.
50% (State) The facility of centralized UIN ensures that irrespective of
TO < 1.5 Cr 10% (Centre) the type of tax (CGST, SGST, IGST or Cess) and the State
90% (State) where such inward supply of goods or services have been
procured, all refunds would be processed by Central
authorities only.

[Expected]
48. What is the responsibility of the taxable person supplying to UN bodies?
(CBEC FAQ)
Ans. The taxable supplier supplying to these organizations shall mention the UIN on the invoices and treat such supplies as
supplies to another registered person (B2B) and the invoices of the same will be uploaded by the supplier.

Note:
1. Entities allocated UIN = Not ‘registered person’ as defined in Sec 2(94) of CGST Act

2. Still supplies to them shall be reported as’ B2B Supplies’


a. Supplier making supplies to such entities mentioned ‘UIN’ of such entities in the tax invoice.
b. Supplier making supplies to such entities shall submit invoice level details of such supplies in the Statement of
outward supplies [GSTR-1] furnished by them.

3. Refund of Taxes.
.

Sec 55 of CGST Act : Right of refund granted to such entities.


.

Sec 54(2) of CGST Act : Procedure for claiming refund:


 Quarterly claim [Form GST RFD-10]
 Time limit for submission of refund claim: = 18 months from the end of quarter in which such
supply was received.

Registration: Effective date

[Imp]
49. What will be the effective date of registration?
(CBEC FAQ)
Ans. Date of effectiveness in case of person required to take registration
Where the application for registration has been submitted within thirty days from the date on which the person becomes liable
to registration, the effective date of registration shall be the date on which he became liable for registration.
Where an application for registration has been submitted by the applicant after thirty days from the date of his becoming liable
to registration, the effective date of registration shall be the date of grant of registration.

Date of effectiveness in case of person opting for voluntarily registration


In case of a person taking registration voluntarily while being within the threshold exemption limit for paying tax, the effective
date of registration shall be the date of grant of registration.

50. Determine the effective date of registration in following cases:


(a) The aggregate turnover of Dhampur Industries of Delhi has exceeded Rs. 20 lakh on 1st September. It
submits the application for registration on 20th September. Registration certificate is granted to it on 22nd
September.
(b) Mehta Teleservices is an internet service provider in Lucknow. Its aggregate turnover exceeds Rs. 20 lakh
on 25th October. It submits the application for registration on 27th November. Registration certificate is
granted to it on 2nd December.
(CA Final Study Material)
Ans. (a) Every supplier becomes liable to registration if his turnover exceeds Rs. 20 lakh [in a State/UT other than Special Category
States, except state of J&K] in a financial year [Section 22]. Since in the given case, the turnover of Dhampur Industries
exceeded Rs. 20 lakh on 1st September, it becomes liable to registration on said date.
29
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 of CGST Rules,
2017]. Therefore, the effective date of registration is 1st September.
(b) Since in the given case, the turnover of Mehta Teleservices exceeds Rs. 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 2nd December. (Rule 10 of CGST Rules)

51. Pari & Sons is an unregistered dealer. On 10th August, 20XX aggregate turnover of Pari & Sons exceeded Rs.
20,00,000. The firm applied for registration on 27th August, 20XX and was granted the registration certificate
on 1st September, 20XX. Under CGST Rules, 2017, you are required to advise Pari & Sons as to what is the
effective date of registration in its case.
(CA Final May 2018 – 4 Marks)
Ans. Date of becoming liable for registration = 10th Aug, 20XX
Date of making registration application = 27th Aug, 20XX - within 30 days
Effective date of registration - 10th August 2017 as application was filed within 30 days.

Effective date of registration is 10th August : As per section 25 read with CGST Rules, 2017, where an applicant submits
application for registration within 30 days from the date he becomes liable to registration, effective date of registration is the
date on which he becomes liable to registration. Since Pari & son’s turnover exceeded Rs. 20 lakh on 10th August, it became
liable to registration on same day. Further, it applied for registration within 30 days of so becoming liable to registration, the
effective date of registration is date on which he becomes liable to registration, i.e. 10th August.
.

Revision of invoices issued between date of becoming liable to registration to date of actual registration: As per
section 31 read with CGST Rules, 2017, every registered person who has been granted registration with effect from a date
earlier than date of issuance of certificate of registration to him, may issue Revised Tax Invoices. Revised Tax Invoices shall be
issued within 1 month from date of issuance of registration in respect of taxable supplier effected during the period starting
from the effective date of registration till the date of issuance of certificate of registration (1st September) within 1 month from
date of issuance of certificate of registration, i.e. on or before 1st October.

52. Determine the effective date of registration in the following instances –


(i) The aggregate turnover of Madhu Ltd., engaged in taxable supply of services in the state of Punjab,
exceeded Rs. 20 Lakhs on 25th August, 20XX. It applies for registration on 19th September, 20XX and is
granted registration certificate on 29th September, 20XX
(ii) What will be your answer, if in the above scenario, Madhu Ltd. submits the application for registration on
27th September, 20XX and is granted registration on 5th October, 20XX?
(CA Inter May 2018 adapted- 4 marks) (CA Inter- MTP Oct 2018)
Ans. (i) Date of becoming liable for registration = 25th Aug, 20XX
Date of making registration application = 19th Sep, 20XX - within 30 days
Effective date of registration - 25th August 2017 as application was filed within 30 days.

(ii) Date of becoming liable for registration = 25th Aug, 20XX


Date of making registration application = 27th Sep, 20XX - after 30 days
Effective date of registration – 5th Oct, 2017 as he did not apply for registration within 30 days. (Rule 10 of CGST Rules)

Registration: Amendment thereof

53. Whether Amendments to the Registration Certificate is permissible?


(CBEC FAQ)
Ans. Yes. In terms of Section 28, the proper officer may, on the basis of such information furnished either by the registrant or as
ascertained by him, approve or reject amendments in the registration particulars within a period of 15 working days from the
date of receipt of application for amendment.
It is to be noted that permission of the proper officer for making amendments will be required for only certain core
fields of information *, whereas for the other fields, the certificate of registration shall stand amended upon
submission of application in the GST common portal.
30

Note:
1. Core fields requiring approval of PO
 Change in legal name of business;
 Change in address of place of business;
 Addition, deletion or retirement of partners, directors, karta, board of trustees, CEO or equivalent,
responsible for day to day affairs of the company.
2. Date from which amendment will be effective:-
a. Date from which change necessitating amendment has taken place: ?
b. Date of submission of amendment application; ?
c. Date of passing of order approving amendment: ?

Change will be effective from date of submission of amendment application


 However, Commissioner (for reasons to be recorded in writing) empowered to sanction amendment with
retrospective effect)
.

54. State with reason whether following statement is true or false –


“When there is change in constitution of business results in change in PAN, the business entity can apply for
amendment of registration in prescribed manner within 15 days.”
(CA Inter may 2018 adapted)
Ans. No. If PAN number changes, fresh registration is required under GST Law. (Rule 19 of CGST Rules)

55. Discuss the procedure for amendment of registration under CGST Act and rules thereto?
(CA Final - MTP March 2018- 4 Marks)
Ans. The procedure for amendment of registration are contained in section 28 read with rule 19 of CGST Rules. The significant
aspects of the same are discussed hereunder:
1. Where there is any change in the particulars furnished in registration application/UIN application, registered person shall
submit an application in prescribed manner, within 15 days of such change, along with documents relating to such
change at the Common Portal.
2. In case of amendment of core fields of information, the proper officer may, on the basis of information furnished or as
ascertained by him, approve or reject amendments in the registration particulars in the prescribed manner. Such
amendment shall take effect from the date of occurrence of event warranting such amendment.
3. However, where change relates to non-core fields of information, registration certificate shall stand amended upon
submission of the application for amendment on the Common Portal.
4. Where a change in the constitution of any business results in change of PAN of a registered person, the said person shall
apply for fresh registration. The reason for the same is that GSTIN is PAN based. Any change in PAN would warrant a
new registration.

Registration: Cancellation thereof

56. Discuss the circumstances where registration is liable to be cancelled.


(CA Inter - RTP Nov 2018)
Ans. Section 29(1) of the CGST Act, 2017 provides that the proper officer may, either on his own motion or on an application
filed by the registered person or by his legal heirs, in case of death of such person, cancel the registration, in such manner and
within such period as may be prescribed, having regard to the circumstances where:
(a) the business has been discontinued, transferred fully for any reason including death of the proprietor, amalgamated with
other legal entity, demerged or otherwise disposed of; or
(b) there is any change in the constitution of the business ; or
(c) the taxable person, other than the person voluntarily registered u/Sec 25(3), is no longer liable to be registered under
section 22 or section 24
Further, section 29(2) of the CGST Act, 2017 provides that the proper officer may cancel the registration of a person from
such date, including any retrospective date, as he may deem fit, where,––
(a) a registered person has made following contravention
31
. (a) he did not conduct any business from the declared place of business; or
(b) he issued invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made
thereunder; or
(c) he violated the provisions of section 171 of the Act or the rules made thereunder (Anti-profiteering measures)

(b) a composition supplier has not furnished returns for three consecutive tax periods (quarter); or
(c) a normal supplier, has not furnished returns for a continuous period of six months **; or
(d) any person who has taken voluntary registration u/Sec 25(3) has not commenced business within 6 months from the
date of registration **; or
(e) registration has been obtained by means of fraud, wilful misstatement or suppression of facts

Note:
** Non-filer of return – registration cancellation proceedings initiated (noticed served)
– TP furnishes return with all dues paid, cancellation proceedings shall be dropped by PO
[Rule 22(2) – inserted by N/N 39/2018-CT (4th Sep, 2018)

“where the person instead of replying to the notice served under sub-rule (1) for contravention of the provisions contained in clause (b)
or clause (c) of section 29(2), furnishes all the pending returns and makes full payment of the tax dues along with applicable interest
and late fee, the proper officer shall drop the proceedings and pass an order in FORM GST-REG 20.
Amendment Analysis
• Sec 29(2)(b): PO may cancel registration of composition TP if he fails to furnish returns for 3 consecutive quarters

.
Sec 29(2)(c): PO may cancel registration of normal TP if he fails to furnish returns for continuous period of 6 months
Rule 22:
PO shall serve SCN proposing cancellation of registration.
Pre Amendment: Officer was to make a judgment whether to restore registration or not. In case he still passes cancellation order, then
assesse/taxpayer was required to apply for revocation of cancellation order (as provided in Section 30 read with Rule 23)
Post Amendment: Where SCN is issued for cancellation of registration on account of non-filing of returns for continuous six months (normal
taxpayer) or for three consecutive tax periods (composition taxpayer), and if all returns are later filed after issue of SCN and tax due
paid, the SCN shall be dropped. (Officer is not left with any discretion)
[New Form GST REG 20 -Order for dropping the proceedings for cancellation of registration substituted]
.

57. Whether cancellation of Registration under CGST Act means cancellation under SGST Act also?
(CBEC FAQ)
Ans. Yes, the cancellation of registration under one Act (say CGST Act) shall be deemed to be a cancellation of registration under
the other Act (i.e. SGST Act). (Section 29 (4))

Note:
1. Vice-versa is also true
2. Cancellation of GST registration under SGST Act = Deemed cancellation under CGST Act

[Expected]
58. Can the proper Officer Cancel the Registration on his own?
(CBEC FAQ)
Ans. Yes, in certain circumstances specified under section 29(2) of the CGST/SGST Act, the proper officer can cancel the registration
on his own. Such circumstances include following:
1) contravention of any of the following prescribed provisions of the CGST Act or the rules made there under;
(a) the registered person did not conduct any business from the declared place of business; or
(b) the registered person issued invoice or bill without supply of goods or services in violation of the provisions of this
Act, or the rules made thereunder; or
(c) the registered person violated the provisions of section 171 of the Act or the rules made thereunder (Anti-profiteering
measures)
2) Composition Supplier becoming a consistent non-return filer for 3 consecutive tax periods (quarters);
3) Regular Supplier becoming a consistent non-return filer for 6 consecutive tax periods (months)
4) Voluntarily registered person failed to commence business within 6 months from the date of registration;
5) Registered person who has obtained registration fraudulently.
32
However, before cancelling the registration, the proper officer has to follow the principles of natural justice (i.e., after grant of
opportunity of being heard).

59. What happens when the registration is obtained by means of willful mis-statement, fraud or suppression of
facts?
(ICAI Final Study Material) (CBEC FAQ)
Ans. In such cases, the registration may be cancelled with retrospective effect by the proper officer. (Section 29(2))

Note:
1. Cancellation of registration with retrospective effective:
 Cancellation order passed on 10th Jan, 2018.
 Cancellation with retrospective effect, i.e., date from which registration was granted.

2. Final GST Return filing in such case: Sec 45 of CGST Act


 Final GST Return (GSTR-10) shall be filed within 3 months of earlier of following 2 dates:
 date of cancellation; or
 date of order of cancellation
.

[Expected]
60. Does cancellation of registration impose any tax obligations on the person whose registration is so cancelled?
(ICAI Final Study Material) (CBEC FAQ) (CA Inter- MTP Aug, 2018- 3 marks)
Ans. Yes, as per Section 29(5) of the CGST Act, every registered taxable person whose registration is cancelled shall pay an amount,
by way of debit in the electronic cash/credit ledger, equivalent to the credit of input tax in respect of inputs held in stock and
inputs 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.

De-registered Person: Liable to pay amount in respect of inputs/ CG (including plant and machinery) in stock.
Stock position Higher of following shall be payable:
Related ITC Output tax payable
(computed as per Rule 44 of CGST Rules, 2017) (Valuing goods as per CGST Rules, 2017)
Inputs lying in stock ITC availed on such inputs Output tax payable on such goods
(lying as such or contained in semi-
finished or finished goods lying in stock)
Capital goods (and plant and machinery) Reduced ITC Output tax payable on such goods
(= ITC availed * Bal life in complete months /
60 Months)

** Above amount may be paid by way of debit in the e- credit ledger or e-cash ledger.
.
.

Circular No. 69/ 43 /2018- GST (dated 26th oct, 2018)


Timing of payment Option -1: Pay necessary amount before applying for cancellation
• Cancellation application
submitted – 15th Jan, 2019 Option -2: No payment when applying for cancellation
• Registration cancelled – • Cancellation order passed by PO (= date of cancellation of registration) (generally)
20tth Feb, 2019
• Determine stock as on preceding day
• Compute related liability
• Pay the liability (either from e-credit ledger or from e-cash ledger)
• Submit final return (Sec 45)- giving details of liability discharged
.

61. Can cancellation of registration order be revoked?


(CBEC FAQ)
Ans. Yes, but only in cases where the initial cancellation has been done by the proper officer suo moto, and not on the request of
the taxable person or his legal heirs.
A person whose registration has been cancelled suo moto can apply to the proper officer for revocation of cancellation
of registration within 30 days from the date of communication of the cancellation order. The proper officer may within a period
of 30 days from the date of receipt of application for revocation of cancellation or receipt of information/clarification, either
revoke the cancellation or reject the application for revocation of cancellation of registration.
33
Cancellation of registration – Standard Operating Procedure notified (A READING IS SUFFICIENT)
Circular No. 69/ 43 /2018- GST Dated: 26th Oct, 2018
Subject: Processing of application for cancellation of registration submitted in Form GST REG-16

Legal provisions Sec 29 of CGST Act, 2017 + Rule 20, 21, 22 of CGST Rules, 2017

Grounds of 1) Discontinuance of business or closure of business;


Cancellation 2) Transfer of business on account of amalgamation, merger, de-merger, sale, lease or otherwise;
3) Change in constitution of business leading to change in PAN;
4) Taxable person (including those who have taken voluntary registration) is no longer liable to be registered
under GST;
* Thus, where a person takes voluntarily registration but subsequently decides to get unregistered, he can apply for
de-registration.
.

5) Death of sole proprietor;


6) Any other reason (to be specified in the application).

Application REG GST-16

Time Limit 30 days of occurrence of event warranting cancellation


Clarification: It might be difficult in some cases to exactly identify or pinpoint the day on which such an event
occurs. For instance, a business may be transferred/disposed over a period of time in a piece meal fashion. In
such cases, the 30-day deadline may be liberally interpreted and the taxpayers' application for cancellation of
registration may not be rejected because of the possible violation of time limit.
.

Application Online
Filing Clarification: Mandatory information required to be filed in application:
1) Address for future correspondence with mobile number and email address;
2) Reason for cancellation;
3) Date from which cancellation is sought;
4) Details of the value and the input tax/tax payable on the stock of inputs, inputs contained in semi-
finished goods, inputs contained in finished goods, stock of capital goods/plant and machinery;
5) In case of transfer, merger of business, etc., particulars of registration of the entity in which the existing
unit has been merged, amalgamated, or transferred (including the copy of the order of the High Court /
transfer deed);
6) Details of the last return filed by the taxpayer along with the ARN of such return filed.
On successful submission of the cancellation application, the same appears on the dashboard of jurisdictional officer.
Application Clarification:
Processing Acceptance or Rejection
Since the cancellation of registration has no effect on the liability of the taxpayer for any acts of
commission/omission committed before or after the date of cancellation, the proper officer should accept all
such applications within a period of 30 days from the date of filing the application, except in the following
circumstances:
a) The application in FORM GST REG-16 is incomplete, i.e. where all the relevant particulars, have not been
entered;
b) In case of transfer, merger or amalgamation of business, the new entity in which the applicant proposes to
amalgamate or merge has not got registered with the tax authority before submission of the application for
cancellation.
.

Normal cases of acceptance:


• In all cases other than those listed at (a) and (b) above, the application for cancellation of registration
should be immediately accepted by the proper officer..
• The order for cancellation should be issued in FORM GST REG-19 with the effective date of
cancellation being the same as the date from which the applicant has sought cancellation in FORM
GST REG-16. In any case the effective date cannot be a date earlier to the date of application for the same.
.
.

Rejection cases:
34
• Inform (in writing) the discrepancy to the applicant – providing time period of 7 days for reply:
• No reply received – reject application after giving an opportunity of being heard;
• reply received but not satisfactory – reject application after giving an opportunity of being heard;
• reply received and is satisfactory – approve application and proceed to cancel registration by passing
cancellation order;
.

Filing of Final Final Return as per Sec 45


Return Section 45 : Every registered person whose registration has been cancelled, shall file a final return in
FORM GSTR-10, within three months of the effective date of cancellation or the date of order of
cancellation, whichever is later.
.

The purpose of the final return is to ensure that the taxpayer discharges any liability that he/she may
have incurred u/sec 29(5) of the CGST Act.
.

Liability as per Sec 29(5)


Section 29(5) read with rule 20 of the CGST Rules states that the taxpayer seeking cancellation of
registration shall have to pay, by way of debiting either the e-credit or e-cash ledger,
• the input tax contained in the stock of inputs, semi-finished goods, finished goods and capital goods or
• the output tax payable on such goods,
whichever is higher.
.

Date for determination of stock position


For the purpose of this calculation, the stock of inputs, semi-finished goods, finished goods and capital goods
shall be taken as on the day immediately preceding the date with effect from which the cancellation has
been ordered by the proper officer i.e. the date of cancellation of registration.
• However, it is clarified that this requirement to debit the e-credit and/or cash ledger by suitable
amounts should not be a prerequisite for applying for cancellation of registration. This can also be
done at the time of submission of final return in FORM GSTR-10.
.

Non-submission of Final Return within stipulated time


• Notice to file return (Sec 46): Notice in FORM GSTR-3A has to be issued to the taxpayer. (asking him to
file return within 15 days)
• Still not submitted, then proceed for best judgment assessment (sec 62): An assessment order in FORM
GST ASMT-13 u/Sec 62 read with Rule 100 of the CGST Rules shall have to be issued to determine the
liability of the taxpayer u/Sec 29(5) on the basis of information available with the proper officer.
o If the taxpayer files the final return within 30 days of the date of service of the order in FORM
GST ASMT-13, then the said order shall be deemed to have been withdrawn. However, the
liability for payment of interest and late fee shall continue.
.

Pendency of It is pertinent to mention here that section 29 of the CGST Act has been amended by the CGST (Amendment)
cancellation Act, 2018 to provide for “Suspension” of registration. The intent of the said amendment is to ensure that a
proceedings- taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of
requirement of the proceedings related to cancellation.
returns filing • Although the provisions of CGST (Amendment) Act, 2018 have not yet been brought into force, it will be
prudent for the field formations not to issue notices for non-filing of return for taxpayers who have already
filed an application for cancellation of registration under section 29 of the CGST Act.
• However, the requirement of filing a final return, as under section 45 of the CGST Act, remains unchanged.
.

Registration: Other special cases

(Acquisition of business: Registration obligation and liabilities thereof)


[Expected]
62. What could be the liabilities (in so far as registration is concerned) on transfer of a business?
(ICAI Final Study Material) (CBEC FAQ)
35
Ans. 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)).

Note:
Whether transaction of transfer of Transfer of Business = Supply of Service
business (for consideration) falls within Thus, this transaction amounts to supply of service.
the scope of supply.
Whether GST will be payable on such GST not payable as it has been exempted. [N/N 12/2017-CT (Entry no. 1)]
transfer?
Whether transferee is liable to take Yes,
registration (without considering any Transferee is required to take registration – Sec 22(3)
threshold limit)?
By what date he becomes liable to take He becomes liable to take registration from date of such transfer – Sec 22(3)
registration?
Whether transferee is liable to pay past Yes
GST dues of the business acquired by The transferor and the transferee remains jointly and severally liable to pay
him? GST dues/ outstanding upto the date of such transfer – Sec 85(1)
[Such dues may be those which have already been determined/ adjudicated by
the time of transfer. Such dues may be those which have not already been
determined/ adjudicated by the time of transfer.]

(Migrated Taxpayer: Provisional auto-registration and subsequent final registration)


63. Whether all assesses / dealers who are already registered under existing central excise/service tax/ vat laws
will have to obtain fresh registration?
(CBEC FAQ)
Ans. No, GSTN shall migrate all such assessees/dealers to the GSTN network and shall issue a provisional registration certificate
with GSTIN number on the appointed day, which after due verification by the departmental officers, will be converted into final
registration certificate. For converting the provisional registration to final registration, the registrants will be asked to submit all
requisite documents and information required for registration in a prescribed period of time. Failure to do so will result in
cancellation of the provisional GSTIN number.

Note:
1. The service tax assesses having centralized registration will have to apply afresh in the respective states wherever they have
their businesses.

(Job-worker)
64. Whether the job worker will have to be compulsorily registered?
(CBEC FAQ)
Ans. No, a Job worker is a supplier of services and will be obliged to take registration only when his turnover crosses the prescribed
threshold of Rs. 20/10 Lakhs.

Note:
1. Supply by job-worker = Treatment of goods of other person = Supplier of service
2. Supply of service may be intra-state or inter-state.
3. Threshold exemption from registration (ATO of 20 lakhs / 10 lakhs)
 Intra-state supply: Registration not required as per express provisions of Sec 22.
 Inter-state supply: Registration exempt as per notifications issued under provisions of Sec 23(2).

Job-worker under GST


• Job-worker = person doing process/ treatment on goods belonging to another ‘registered person’ (called principal)

Job-work procedure
Stage-1: Dispatch of goods (inputs/ capital goods) by Principal to job-worker
• Such dispatch is not treated as supply and GST need not be paid. (Sec 143 of CGST Act)
o Intimation of dispatch shall be given over common portal [Form GST ITC 04]
• Post job-work, the principal shall do either of following:
o Bring back goods to him within 1 year (inputs) or 3 years (capital goods);
o Supply goods directly from premises of job-worker within 1 year (inputs) or 3 years (capital goods)
36
Registration Requirement of Job-worker:

Principal intends to receive back goods from job-work and will be supplying goods from his registered place of business
Registered principal J/Wrker may be registered or Need not do anything
unregistered

Principal intends to supply job-worked goods / capital goods from job-worker’s premises
Registered principal J/Wrker is registered Need not do anything
J/Wrker is unregistered Registered principal shall get the job-worker’s
premise registered in his name as his additional
place of business.

65. Whether the goods will be permitted to be supplied from the place of business of a job worker?
(CBEC FAQ)
Ans. Yes. But only in cases where the job worker is registered, or if not, the principal declares the place of business of the job worker
as his additional place of business.

[Expected]
66. Mr A (principal) has send some goods for chemical treatment to Mr Y (job-worker). Both, Mr A (principal) and
Mr Y (job-worker) are GST registered. Post completion of job-work, Mr A intends to make direct supply from the
premises of Mr Y. The value of supply of such goods shall be considered in aggregate turnover of whom:
(a) Mr A (the principal); or
(b) Mr Y (the Job-worker)

Ans. The value of supply of goods shall definitely be considered in aggregate turnover of Mr A (the principal) as the supplier is Mr A
only though he has effected supply from premises of registered job-worker.
In this context, Explanation to Sec 22(1) explicitly provides that the supply of goods, after completion of job-work,
by a registered job-worker shall be treated as supply of goods by the principal referred to in Section 143, and the value of such
goods shall not be included in aggregate turnover of the registered job-worker.

Conclusion:
Registered Principal: Computation of ATO
1. Supply effected from his own GST registered premises shall be included in his ATO.
2. Supply effected from GST registered premises of the job-worker shall also be included in his ATO.
Registered Job-worker: Computation of ATO
1. Charges of job-work (supply of service) shall be included in his ATO.
.

Comprehensive

67. 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, 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
(Rs)* (Rs)*
Serving of cooked food and cold drinks/non-alcoholic beverages in 5,50,000 6,50,000
restaurant in Maharashtra
Sale of alcoholic liquor for human consumption in Uttarakhand — 5,00,000
Interest received from banks on the fixed deposits 1,00,000 1,00,000
.
Supply of packed food items from restaurant in Maharashtra 1,50,000 2,00,000
* excluding GST
37
You are required to provide reasons for treatment of various items given above.
(ICAI RTP May 2018 – New Syllabus)
Ans. As per section 22 of the CGST Act, 2017, 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 Rs. 20 lakh.
However, if such taxable supplies are made from any of the specified special category States, namely, States of
Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand, he
shall be liable to be registered if his aggregate turnover in a financial year exceeds Rs. 10 lakh.
In the given question, since Rishabh Enterprises is engaged in making taxable supplies from Maharashtra which is not a specified
Special Category State, the threshold limit for obtaining registration is Rs. 20 lakh.
The threshold limit is not reduced to Rs. 10 lakh in this case, as sale of alcoholic liquor for human consumption from Uttarakhand
(one of the specified Special Category States) are non-taxable supplies in terms of section 9(1) of CGST Act, 2017.
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 which tax is payable under reverse charge is not taken into
account for calculation of 'aggregate turnover'.
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 of
February (Rs.) February & March (Rs.)
Serving of cooked food and cold drinks/non-alcoholic 5,50,000 12,00,000
beverages in restaurant in Maharashtra [Rs. 5,50,000 + Rs. 6,50,000]
Add: Sale of alcoholic liquor for human consumption in 5,00,000
Uttarakhand [Note-1]
Add: Interest received from banks on the Fixed 1,00,000 2,00,000
Deposits [Note-2] [Rs. 1,00,000 + Rs. 1,00,000]

Add: Supply of packed food items from restaurant in 1,50,000 3,50,000


Maharashtra [Rs. 1,50,000 + Rs. 2,00,000]
Aggregate Turnover 8,00,000 22,50,000
Notes:
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.
2. Services by way of extending deposits, loans or advances in so far as the consideration is represented by way of
interest or discount (other than interest involved in credit card services) is exempt vide Notification No. 12/2017.
Thus, interest received from banks on the fixed deposits 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 R s 20 lakh in that month. However, since its ATO exceeds Rs 20 Lakhs in the month of March, it
should apply for registration within 30 days from the day on which it becomes liable to registration.

Note:
1. Rishab Enterprises – 2 Establishment in different states – One in Maharashtra, Another in Uttrakhand
.

 Both these establishments in different states = Deemed Distinct persons under GST [Explanation 1 to Sec 8 of
IGST Act / Sec 25(5) of CGST Act]
.
 Establishment in Uttrakhand (establishment of deemed distinct person) is making non-taxable supply (supply of
liquor) which is not liable to GST – Registration of this establishment is not required in terms of Sec 23(1) of CGST Act
.

 Establishment in Maharashtra (establishment of deemed distinct person) is making taxable which is liable to GST
– Registration of this establishment is only required in terms of Sec 22 of CGST Act
.

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