REGISTRATION : Direct & Indirect Tax

 

REGISTRATION

 

GST registration is Mandatory for:-

·         Any business whose turnover in a financial year exceeds Rs 40 lakhs (limit is Rs 10 lakhs for special category States) Section 22 (1)

(Note: If turnover is of only exempted good /services which are exempt under GST, this clause does not apply.)

·         Every person who, on the day immediately preceding the appointed day, is registered or holds a licence under an existing law, shall be liable to be registered under this Act with effect from the appointed day (Section 22 (2))

·         persons making any inter-State taxable supply;

·         casual taxable persons making taxable supply;

·         persons who are required to pay tax under reverse charge;

·         person who are required to pay tax under sub-section (5) of section 9;

·         non-resident taxable persons making taxable supply;

·         persons who are required to deduct tax under section 51, whether or not separately registered under this Act;

·         persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;

·         Input Service Distributor, whether or not separately registered under this Act;

·         persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;

·         every electronic commerce operator;

·         every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and

·         such other person or class of persons as may be notified by the Government on the recommendations of the Council.

The following persons shall not be liable to registration

·         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.

·         An agriculturist, to the extent of supply of produce out of cultivation of land.

·         The Government on the recommendations of the Council may specify by notification.

·         Inter state supply of services (including E-commerce operator) of less than 20 lakhs.

 

 

 

 

 

 

 

 

 

 

Illustration 1

M/s Anand and company is carrying business in supply of goods in Mumbai and they having PAN Number AAAUA12345. The company started business on 06/02/2018. His turnover is as follows:

Date	Taxable supply within state of Maharashtra	Export (Rs)	Exempt(Rs)
28/02/2018 06/03/2018 07/03/2018 08/03/2018 09/03/2018 10/03/2018 11/03/2018	2,14,000 2,04,000 2,85,000 2,72,000 11,92,000 12,12,000. 1,80,000	8,12,400 -- -- -- -- -- --	21,000 32,000 18,000 16,000 12,000 -- 15,000

Determine the day from which company is liable for registration.

Solution 1

Calculation of aggregate turnover

Date	Taxable supply within state of Maharashtra	Export (Rs)	Exempt(Rs)	Total Turnover	Aggregate turnover
28/02/2018 06/03/2018 07/03/2018 08/03/2018 09/03/2018 10/03/2018 11/03/2018	2,14,000 2,04,000 2,85,000 2,72,000 11,92,000 12,12,000. 1,80,000	8,12,400 -- -- -- -- -- --	21,000 32,000 18,000 16,000 12,000 -- 15,000	10,47,400 2,36,000 3,03,000 2,88,000 12,04,000 12,12,000 1,95,000	10,47,400 12,83,400 15,86,400 18,74,400 30,78,400 42,90,400

Turnover exceeds Rs 40,00,000 so person is liable for registration from 10/03/2018

 

 

 

Illustration 2

M/S Dasgupta and co in Arunachal pradesh furnishes you the following information of his supply transaction. Find out from which they are to pay tax.

Date	Taxable (Rs)	Tax free (Rs)
15/05/2018 18/05/2018 20/05/2018 22/05/2018 24/05/2018 28/05/2018 31/05/2018 02/06/2018	4,80,000 3,40,000 1,02,000 2,18,000 2,80,000 4,18,000 3,17,000 1,87,000	62,000 55,000 8,000 6,000 36,000 78,000 24,000 80,000

 Solution 2

Calculation of taxable turnover

Date	Taxable (Rs)	Tax free (Rs)	Total Turnover	Aggregate turnover
15/05/2018 18/05/2018 20/05/2018 22/05/2018 24/05/2018 28/05/2018 31/05/2018 02/06/2018	4,80,000 3,40,000 1,02,000 2,18,000 2,80,000 4,18,000 3,17,000 1,87,000	62,000 55,000 8,000 6,000 36,000 78,000 24,000 80,000	5,42,000 3,95,000 1,10,000 2,24,000 3,16,000 4,96,000 3,41,000 2,67,000	5,42,000 9,37,000 10,47,000 12,71,000 15,87,000 20,83,000

Turnover exceeds Rs 20,00,000 so person is liable for registration from 28/05/2018

 

 Illustration 3

M/s Ambekar of Ratnagiri is trader in Ratnagiri Mangoes, which are tax exempted items. The companies turnover of sale and purchase is a follows.

Date	Supply (Rs)	Purchase (Rs)
April 2018 May 2018 June 2018	12,60,000 25,40,000 18,60,000	8,40,000 18,60,000 9,20,000

Determine from which month company is liable for registration.

Solution 3

No person is not liable for registration because he is dealing in exempted items.

 

Illustration 4

M/s Priya exports pvt ltd furnisining the following information . Advise them from which day company is liable for registration.

Date	Purchase	Supply (Zero Rated)export
02/07/2018 08/07/2018 15/07/2018 20/07/2018	20,20,000 36,000 1,80,000 2,80,000	16,40,000 3,80,000 24,70,000 8,40,000

 

Illustration 5

M/S Radha Krishna is a dealer in Mizorm. From the following information find out from which date company is liable for registration under GST

Date	Exempted supply	Taxable Supply
02/06/2018 05/06/2018 08/06/2018 12/06/2018 14/06/2018 16/06/2018 18/06/2018 20/06/2018	16,000 -- 60,000 2,40,000 4,00,000 8,00,000 4,00,000 ----	24,000 12,000 40,000 3,20,000 9,60,000 4,00,000 4,80,000 8,00,000

Solution 5

Calculation of aggregate turnover

Date	Exempted supply	Taxable Supply	Total Turnover	Aggregate turnover
02/06/2018 05/06/2018 08/06/2018 12/06/2018 14/06/2018 16/06/2018 18/06/2018 20/06/2018	16,000 -- 60,000 2,40,000 4,00,000 8,00,000 4,00,000 ----	24,000 12,000 40,000 3,20,000 9,40,000 4,00,000 4,80,000 8,00,000	40,000 12,000 1,00,000 5,60,000 13,00,000 12,00,000 8,80,000 8,00,000	40,000 52,000 1,52,000 7,12,000 19,92,000

 

Illustration 6

M/s Ashwini Jewellers from Mumbai gives following information from which you are required to find out from which date the company is liable for registration.

Date	Supply of goods	Ornament making charges
15/06/2018 20/06/2018 25/06/2018 28/06/2018 30/06/2018	64,000 12,00,000 5,80,000 3,20,000 5,70,000	--- 2,40,000 70,000 80,000 1,60,000

 

Illustration 7

Shri Pandurangpatil , an agriculturist from Nagpur informed you that his turnover from agriculture exceeds 20,00,000 on 03/11/2018 for the year 2018-19 whether he will be liable for registratrion?

Illustratoin 8

M/s Sugandi florist of Dadar , turnover exceeds Rs 20 lakhs from 15/10/2018 . He approached you for GST registration , Give your advice?

Illustration 9

M/s Jet speed company stared business in computes on Dadar 15/10/2018. Their turnover is Rs 1,000 on 16/10/2018. They approaches you for voluntary registration . State whether they can get registered?

Illustration 10

M/s Gift house of Chennai puts up a Book stall at Exhibition centre in Goregaon to he held between November 3 to November 11. The purpose is sale of gift items. Expected turnover is Rs 10 laks .state whether M/S Gift house need registration.

Illustration 11

Mr Jacky Chain of chaina came to Mumbai to give consultation of repairing plastic machinery as furtherance of his business, State whether he is liable to take registration as NRI.

Illustration 12

M/S Fresh Bazar open shop at Mumbai , Pune , Nagpur , Aurangabad having one PAN Number . Mumbai is there head office . You are required to find out when they are liable to get registered.

Date	Supply at Mumbai	Supply at pune	Supply at Nagpur	Supply at Aurangabad
15/05/2018 15/05/2018 28/05/2018 30/05/2018 31/05/2018	225000 272000 316000 177000 60000	112000 98000 114000 102000 32000	82000 77000 118000 82000 40000	66000 55000 88000 44000 22000

 

Illustration  13

M/S Vinayak and company is a manufacture in Thane having registration number under MVAT, Under CST act, Under Service tax and also Excise. Determine from which date he is liable for registration under GST.

 

Illustration 14

M/S Anil and company a registered dealer under GST transferred business to M/s Sunil &company  on 15/05/2018 . Anil & co turnover of taxable supply from 01/04/2018 to 15/05/2018 was rs 5,10,000. Determine from which date Sunil & company is liable for registration,

 

Illustration 15

M/S International Industry , Mumbai I a dealer. From the following information , determine from which date the company is liable for registration under GST.

Date	Taxable Sale on Own Account	Taxable sales on behalf of Principal
02/06/2018 04/06/2018 12/06/2018 15/06/2018 20/06/2018 25/06/2018	32,000 1,00,000 1,60,000 1,92,000 1,36,000 4,80,000	24,000 96,000 64,000 8,00,000 -- 24,000

 

 

Illustration 16

P& co gives you the following information .the company has started business on 23/072018

Date	Taxable supply	Tax exempt supply	Export supply	Service charges
23/07/2018 30/07/2018 02/08/2018 14/08/2018 30/08/2018 05/09/2018 20/09/2018	11,000 60,000 3,33,000 4,15,000 -- 2,32,000 78,000	51,000 45,000 14,000 12,000 --- 18,000 --	-- 6,000 -- 9,20,000 -- -- --	-- 25,000 62,000 50,000 1,00,000 -- 25,000

Compute when M/s p &co  is liable for registration.

Illustration 17

M/S Laxmi& company commene business on 19^th March 2018. From the following information regarding the sales transaction find out from which date company is liable for registration.

Date	Taxable Sales	Taxfree Sales	Export sales
19/03/18 24/03/18 28/03/18 31/03/18 03/04/18 04/04/18 10/04/18 12/04/18 15/04/18	70,000 1,00,000 1,80,000 1,20,000 90,000 50,000 1,25,000 1,60,000 2,20,000	1,50,000 1,20,000 2,20,000 20,000 2,00,000 2,80,000 3,20,000 2,50,000 1,50,000	-- 3,50,000 -- -- -- -- 10,40,000 -- --

 

 Illustration 18

Mr. A of Mumbai is trading on his own goods and also acting as an agent of Mr. B of Chennai. Mr. A turnover in the financial year 2017-18 is Rs 18 lacs in his own account and Rs 4 Lakhs on account of his principal. Whether Mr. A is liable to register under GST law.

 

Illustration 19

Mr. Mahajan is a farmer with an annual turnover in relation to agriculture of Rs 19,00,000 . Since this income is related to agriculture the turnover is exempted from GST. However Mr Mahajan also supplies plastic bags worth of Rs 2,50,000 (taxable goods) along with his crops and charges separately for this. Is Mr Mahajan is required to register under GST? Advice.

 

Illustration 20

Mr CMA Ashwin , an unregistered person under GST, has place of profession in Mumbai , Maharashtra, supplies taxable services to Infosys ltd , a registered person under GST in Mumbai

a. is it interstate supply or Intra state supply?

b. Who is liable to Pay GST

Note: Mr Ashwin turnover in P.Y was Rs 18.5 lacs

 

Illustration 21

M/S Sun Pvt Ltd incorporated in Chennai on 1st July 2017 has the following details for the year ended 2017-18

SR No	Particulars	Rs
1 2 3 4 5	Inter state exempted supply of goods Intra State supply of goods Non taxable goods Exempted supplies of services Value of export of goods	3,80,000 5,20,000 1,80,000 1,00,000 7,20,000

Is M/S Sun pvt ltd required to register GST?