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Liable for registration

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Dalip Soni

121 Points Posted on 16 August 2020

A person is making annual taxable supplies less than the threshold limit of being registered under the act, also makes supplies of exempted catagory and thus the total supplies exceed the threshold limit. Under such a scenario, wheather he is liable for registration?

Replies (5)

Quick Summary

This discussion clarifies whether a business making both taxable and exempt supplies exceeding the threshold limit is liable for GST registration. The consensus is yes, as 'aggregate turnover' includes both taxable (excluding RCM) and exempt supplies, computed on an all-India basis. However, if a business deals *exclusively* in exempt supplies, Section 23 of the CGST Act states registration is not mandatory, regardless of turnover.

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 16 August 2020

Yes, liable for registration..

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 16 August 2020

As per section 22 of the CGST act 2017 , if aggregate turnover exceeds threshold limits then he is liable to registered under GST .

AS per section 2( 5) of the CGST act 2017 in definition of aggregate turnover is Taxable supplies , ( excluding RCM ) , exempt supplies , export , inter-state supplies will be computed on all India basis but excluding CGST , SGST , UTGST, IGST .

So in your case both Taxable and exempt supplies will be calculated for Threshold limit , so as per my opinion you are liable to registered under GST .

please confirm with others also .

Vignesh Loganadan

30 Points Posted on 16 August 2020

Yes,he is liable to get registered
since exempt supply is form part aggregate turnover.

Dalip Soni

121 Points Posted on 18 August 2020

Sir,
please clerify, if anyone deals in exempt catagory of supplies exclusively, and exceed the threshold limit then in such case the registration under the act is mandatory?

Sagar Patel

Tax and Business Consultant

5533 Points Posted on 18 August 2020

As Per Section 23 of CGST Act, "any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act; is not liable for registration.

So, if you are exclusively deal in Exempted goods, than not liable for registration, without any turnover limit.