QUESTION

KINLDY LET ME KNOW THE REGISTAION LIMIT AS PER SECITON 22 IN PUNJAB. WHETHER IT IS 20 LAKH OR 40 LAKH. KINLDY SEND THE RELEVANT NOTIFICATION OF PUNJAB STATE ALONG WITH YOU ANSWER

ANSWER

Facts of the case: Registration limit (20 lakh or 40 lakh) as per section 22 in Punjab.

Law Applicable:

Notification No. 10/2019-Central Tax
In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter referred to as the 'said Act'), the Central Government, on the recommendations of the Council, hereby specifies the following category of persons, as the category of persons exempt from obtaining registration under the said Act, namely,-

Any person, who is engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed forty lakh rupees, except, -

(a) persons required to take compulsory registration under section 24 of the said Act;
(b) persons engaged in making supplies of the goods, the description of which is specified in column (3) of the Table below and falling under the tariff item, sub-heading, heading or Chapter, as the case may be, as specified in the corresponding entry in column (2) of the said Table;
(c) persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand; and
(d) persons exercising option under the provisions of sub-section (3) of section 25, or such registered persons who intend to continue with their registration under the said Act.

Interpretation: Notification No. 10/2019 Central tax exempts the person from obtaining registration if he is exclusively engaged in supply of goods and his aggregate turnover in FT does not exceed 40 lakh rupees and he is not required to take compulsory registration as per section 24 of CGST Act.

However this Notification will not be applicable on persons engaged in making intra-State supplies in the States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, Uttarakhand.

Conclusion: The registration limit for Punjab is 40 lakhs subject to above mentioned conditions that he is exclusively engaged in supply of goods and his aggregate turnover in FT does not exceed 40 lakh rupees and he is not required to take compulsory registration as per section 24 of CGST Act.(Reply dt.27-04-2020)