EXAMPLE-141

Mr A has turnover of rupees 30 lakh in respect of goods which are non taxable under GST. He also has turnover of taxable supply of rupees 7 lakh. Determine whether Mr. A liable to be registered under GST as he mainly deals in non taxable supplies.

(i)                 If Mr. A deals only in non taxable supplies whether registration required under GST.

Answer

As per definition under 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;

In accordance with above provision, aggregate turnover for the purpose of registration is Rs 30 lakh + 7 lakh = Rs. 37 lakh. Thus, Mr. A required to take registration under GST.

(i)                 As per section 23(1) of CGST Act, any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act irrespective of threshold limit under GST.

Thus, according to above provision if Mr. A deals exclusively in non taxable supply then he is not required to registration under GST.