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Registration required or not

21 August 2020

plz answer-XYZ LTD is a supplier of goods and his taxable supplies are as follows- Taxable Supplies Rs 35,00,000/- and Taxable supplies for which tax to be paid by the recipient Rs.10,00,000/-. XYZ Ltd is required to take registration or not?

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2 Replies

Sagar Patel (Tax and Business Consultant) (11611 Points)
Replied 21 August 2020

Yes, XYZ Ltd is liable to take GST registration as 10 lakh is also considered as outward Supplies of XYZ Ltd.
XYZ Ltd. has not liability to pay tax on that due to RCM applicability, but it's supply of theirs only.

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Rajendra Prabhu (Associate ) (59 Points)
Replied 21 August 2020

Dear Subbaroa Ji,

The answer is yes, the company needs to get registered. Kindly refer section 22 (person liable for registration) read with section 2(6) - "aggregate Turnover" of the CGST Act.

Whereas section 22 specifies aggregate turnover crossing 20 lakhs, and aggregate turnover includes all taxable supplies, exempted, export , even the supplies on which tax is payable by the recipient.