EXAMPLE-139

Mr Akshay deals in trading of goods with in state on his own account as well as an agent of principal, Mr. Kamal.  Mr Akshay has aggregate turnover of 12 lakh in the previous financial year. His turnover during the current year till 1st November 2017 on his own account is of rupees 12 lakh and on behalf of his principal is rupees 15 lakh. his turn over crosses the threshold limit of Rs. 20 lakh on 1st September.

1. Determine the aggregate turnover in respect of registration requirement in GST.

2. Mr Akshay does not take registration in the year ending on 31st March 2018 and obtained registration in financial year 2018-19 as their turnover in preceding year exceeds 20 lakh. State whether Mr Akshay is correct in taking registration.

Answer

(i)                 As per definition of “aggregate turnover” under section 2(6) of CGST Act, it 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;

Explanation to section 22 specifies that “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

 According to the above provision Aggregate turnover during current year = 12 lakh+15 lakh = Rs.27 lakh

(ii)               Section 22 does not specify that aggregate turnover taken into consideration is of previous financial year. Therefore anytime in the financial year his turnover exceeds 20 lakh or 10 lakh as the case may be the supplier is required to register himself within 30 days from the date when his turnover exceeds threshold limit.

In the present case Mr. Akshay shall have to apply for registration till 30^th day of September to take benefit of carry forward of credit held in the stock on date immediately preceding the date on which liable to register.