Turnover exceeding limit
NICSON JOHN (513 Points)
05 December 2021NICSON JOHN (513 Points)
05 December 2021
prasad Nilugal
( GST Practitioner & Accounts )
(14167 Points)
Replied 05 December 2021
sabyasachi mukherjee
(26057 Points)
Replied 06 December 2021
CA NIKHIL JAIN
(PRACTICING CHARTERED ACCOUNTANT)
(35 Points)
Replied 06 December 2021
Legal Provisions:
As per Section 22 of CGST Act, Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds the threshold limit.
Meaning of Aggregate Turnover as per Section 2(6) of CGST Act, “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;
Conclusion:
Thus as per the above provisions Exempted supply is used to calculate aggregate turnover, but liability to register arises only if person is making taxable supply. Thus if you are making 100% exempted supply, then irrespective of turnover you are not required to obtain GST registration.
Further, the same has been clarified by the department through FAQs.
47 |
I am a supplier of exempted goods based out of Delhi and procure raw material from Kerala. My supplier from Kerala insists that I have to be registered in Delhi for procurement of Inter-State goods. Is he right ? |
No, if you are dealing in 100% exempted supplies you are not liable to be registered in GST. There is no requirement of registration for making inter-state purchases. |
NICSON JOHN
(513 Points)
Replied 09 December 2021
CA NIKHIL JAIN
(PRACTICING CHARTERED ACCOUNTANT)
(35 Points)
Replied 09 December 2021
Not required, only show exempted supply for the month relevant to return period
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