2018 (11) TMI 485 - AAR - GST

Registration u/s 22 of CGST, SGST Acts 2017 - manufacturer of Biris - annual business turnover is less than ₹ 20 lakhs - no inter-state outward taxable supply - Held that - Since the applicant reported that his turnovers from the past (3) years are below ₹ 20 lakhs, he may continue the GSTIN registration or may cancel the registration as per the provisions of Sec.29 of APGST Act 2017. Ruling - The Registration under Sec.22 of APGST Act 2017/CGST Act 2017 is not mandatory for applicant, as per the existing provisions of law.

Summary

Issues:
1. Liability for registration under Sec. 22 of CGST, SGST Acts 2017 for a manufacturer of Biris with an annual turnover less than ?20 lakhs.

Analysis:
The applicant, engaged in manufacturing Biris, sought an advance ruling regarding the mandatory registration under Sec. 22 of the APGST Act 2017 and CGST Act 2017. The applicant's turnover in the past three years was below ?20 lakhs. The applicant clarified that they purchased raw materials from registered dealers within and outside Andhra Pradesh and sold the resultant Biris only within the state.

Upon examination, it was found that the applicant was aware of the liabilities under Reverse Charge and the necessity of registration if supplies were made outside Andhra Pradesh. The relevant statutory provision, Sec. 22 of the APGST Act 2017, mandates registration for suppliers with an aggregate turnover exceeding ?20 lakhs in a financial year.

Considering the applicant's turnovers were below the threshold, the ruling concluded that registration under Sec. 22 of the APGST Act 2017 and CGST Act 2017 was not obligatory for the applicant based on the existing legal provisions. The applicant could either maintain the GSTIN registration or cancel it as per Sec. 29 of the APGST Act 2017 in case of business discontinuation or other specified circumstances.