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TMI BlogRegistration of GST with Practical IssuesX X X X Extracts X X X X X X X X Extracts X X X X ..... Registration of GST with Practical Issues X X X X Extracts X X X X X X X X Extracts X X X X ..... shold limit. How to compute this threshold limit Every supplier required to be registered if the above threshold limit has been crossed for the supply of goods or services or both. Except when the supplier deals only in exempted goods or services exclusively. Major problem is how to compute the aggregate turnover so that it can be determine that registration under GST is required or not . when t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he aggregate turnover of the person exceed the threshold limit , one need to take registration . What is aggregate turnover what its include is very significant here. "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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nter-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; To understand the aggregate turnover in detail it is mandatory to understand the exempt supplies. Without knowing the exempted supplies, aggregate turnover can not be determined. "exempt supply" means supply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply; What is important here is that Non taxable supply on which GST is not applicable. Like Salary which is neither goods nor services means thereby that salary is not covered in GST ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as per Schedule-III, hence salary is non taxable supply. For Example . * Mr. A is doctor doing and his own practice and his yearly income is ₹ 12lacs and he sit in hospital for two hours in day on salary basis and his salary is ₹ 6 lacs per annum. He has income from commercial building rent which is ₹ 4 lacs . Mr. A in this case is having income more than the threshold limit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore apply for registration under GST and Pay GST on rent. If you do not combine the definition of exempt supply , you can not calculate the applicability of threshold limit. So Mr. A is a farmer with an annual turnover of ₹ 25 lakh. Since this income is agriculture-related, the turnover is exempt from GST. However, Mr. A also supplies plastic bags along with his crop and charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... separately for this. His turnover from the sale of plastic bags is ₹ 1 lakh and we know that this transaction (sale of plastic bags) is chargeable to GST. In simple words, his taxable turnover is only ₹ 1 lakh. Going by the aggregate turn over Mr. A is required to get the registration. 2. Case Where no registration is required -Section-23. * Person making interstate supply of taxabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e services and having aggregate turnover , to be computed on all India basis, not exceeding amount of ₹ 20 lacs( ₹ 10 lacs in Special category State). Notification No. 10 dated 13.10.2017. * Any person engage in making supply of exempted goods or services even though supplies exceeds the threshold limit. * A agriculturist to the extend of supply of produce out of cultivation of lan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 3. Compulsory Registration is required in the following cases without any threshold limit. * Casual Taxable person. * Person required to pay tax under reverse charge * Person making any inter-state Supply now exempted vide Notification no. 10 dated 13.10.2017. * Non resident person making taxable supply. * Input service distributor. * Person required to deduct TDS under section 51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . * Every electronic commerce operator. * Person who supply goods or service other than supplies specifies in Section 9[5], through such electronic commerce operator who is required to collect tax under section 52. [other than supplies specified under sub-section (5) of section 9 is allowed to take benefit of threshold limit vide Notification No. 65/2017 - Central Tax dt. 15/11/2017]. * Eve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry person supplying online information and data base access or retrieval service from place outside India, other than the registered person. * Person required to pay tax under section 9[5]. * Person who makes taxable supply of goods or services or both on behalf of other taxable person whether as agent or otherwise. About the Author: Author is practicing chartered accountant in Gurugram [ Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ryana] and having practice in Goods and Service Tax . He can be reached at [email protected]. WWW. skaca.in X X X X Extracts X X X X X X X X Extracts X X X X
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