Registration – CA Inter Tax Study Material

Registration – CA Inter Tax Study Material is designed strictly as per the latest syllabus and exam pattern.

Registration – CA Inter Taxation Study Material

Question 1.
With the help of the following information in the case of M/s Jayant Enterprises, Jaipur (Rajasthan) for the year 2019-20, determine the aggregate turnover for the purpose of registration under the CGST Act, 2017.

S. No.	Particulars	Amount (₹)
(i)	Sale of diesel on which Sale Tax (VAT) is levied by Rajasthan Government.	1,00,000
(ii)	Supply of goods, after completion of job work, from the place of Jayant Enterprises directly by principal.	3,00,000
(iii)	Export supply to England (U.K.)	5,00,000
(iv)	Supply to its own additional place of business in	5,00,000
	Rajasthan.
(v)	Outward supply on which GST is to be paid by recipient under reverse charge.	1,00,000

Answer
Computation of Aggregate Turnover for the purpose of registration:

Particulars	Amount (₹)
Sales of diesel [WN 1]	1,00,000
Goods directly supplied from the job worker’s premises. [WN 2]	Nil
Export Supply to England (UK) [WN 3]	5,00,000
Supply to its own additional place of business in Rajasthan. [WN 4]	5,00,000
Outward supply on which GST is to be paid by recipient under reverse charge. [WN 5]	1,00,000
Total aggregate turnover	12,00,000

Working Notes:

1. Petroleum products are covered under non-taxable supply. Therefore it includes under exempt supply and aggregate turnover includes exempt supplies
2. Goods directly supplied from the job worker’s premises, it would be included in the ‘aggregate turnover of the principal
3. Export supplies are specifically included in aggregate turnover
4. Supply to its own additional place of business in Rajasthan, Since they are deemed to be supply. Hence, it is part of aggregate turnover
5. Aggregate turnover excludes value of inward supplies on which tax is payable under reverse charge basis. However, outward supplies on which tax is payable by recipient are not excluded.

Question 2.
List the inclusions and exclusions for computing the “Aggregate Turnover” under CGST Act, 2017. [May 2018, 5 Marks]
Answer:
Aggregate turnover

Inclusions

1. Taxable supplies,
2. Exempt supplies,
3. Exports of goods and/or services and
4. Inter-State supplies of persons having the same PAN, to be computed on all India basis

Exclusions

1. Value of inward supplies on which tax is payable by a person on reverse charge basis.
2. Central tax, State tax, Union territory tax, integrated tax and cess

Question 3.
With reference to GST Laws, what is CIN? [May 2018 Old Course, 1 Mark]
Answer:
‘CIN’ refers to “Challan Identification Number”. It is generated by the I banks indicating that the payment has been realized and credited to the appropriate government account against a generated challan.

Question 4.
Examine the liability of compulsory registration under section 24 of the CGST Act, 2017, in each independent cases mentioned below:
(i) Meenu is a supplier in Maharashtra, is engaged in supply of potatoes within Maharashtra and also outside Maharashtra, whose turnover exceeds threshold limit under GST Law.

(ii) Jinu Oils, Gujarat, is engaged in supplying machine oil (including related services) as well as petrol. Total turnover of machine oil is ₹ 20 lakh (including supply of services for ₹ 4,00,000) and of petrol is ₹ 15 lakh.

(iii) Tilu is working as an agent, he is supplying goods as an agent of Tiku (who is registered taxable person) and its aggregate turnover does not exceed ₹ 20 lakh during the financial year. [May 2019 Old Course Modified, 2+2+1 Marks]
Answer:

	Case	Statutory provision	In the given case
(i)	Meenu	♦  Section 24 of the CGST Act provides that persons making any inter-State taxable supply of goods are required to obtain registra­tion compulsorily under GST laws irrespective of the quantum of aggregate turnover. ♦ However, an agriculturist, to the extent of supply of produce out of cultivation of land, is not liable to reg­istration.	♦ Assuming that Meenu is engaged in cultivation and supply of potatoes, she is NOT LIABLE to regis­tration irrespective of the fact that she is engaged in making inter-State supply and her turnover exceeds the threshold limit. (Refer Note 1)
(ii)	Jinu Oils	♦  Section 24 of the CGST Act specifies the catego­ries of persons who are required to be mandatorily registered under GST irre­spective of the quantum of aggregate turnover. ♦  However, as per section 22 of the CGST Act, 2017, if the aggregate turnover of the person exceeds ₹ 20 lakhs in a financial year or exceeds ₹10 lakhs for persons in a specified state, is liable for registration.	♦    Liability under section 24: In the given case, Jinu Oils does not fall in any of the specified categories. There­fore, it is NOT required to obtain registration com­pulsorily under section 24 of CGST Act, 2017.♦  Liability under section 22: Jinu Oils is LIABLE obtain registration on the basis of the turnover since its aggregate turnover [₹ 35 lakh – including turnover of exempt supply of petrol] exceeds the threshold limit of ₹ 20 lakhs
(iii)	Tilu	♦ Section 24 of the CGST Act provides that persons who make taxable supply of goods and/or services on behalf of other taxable per­sons whether as an agent or otherwise are required to obtain registration com­pulsorily under GST laws irrespective of the quantum of aggregate turnover.	♦ Tilu will be mandatorily REQUIRED to obtain registration under section 24 even though he does not trigger the provisions prescribed in section 22.

Note: Any person engaged exclusively in the business of supplying exempted 1 goods is not liable to registration. Since potatoes are exempted goods, Meenu is not liable to obtain registration irrespective of the fact that she is engaged in making inter-State supply and her turnover exceeds the threshold limit.

Question 5.
State the persons who are not liable for registration as per provisions of Section 23 of Central Goods and Services Tax Act, 2017. [Nov. 2018, 5 Marks]
Answer:
As per provisions of Section 23 of CGST Act, 2017, the persons who are not liable for registration are as under-
(a) Person engaged exclusively in supplying goods/services/both that are wholly exempt from tax.
(b) Person engaged exclusively in supplying goods/services/both that are not liable to tax.
(c) Agriculturist to the extent of supply of produce out of cultivation of land.
(d) Persons only engaged in making supplies of taxable goods or services jg, or both liable to reverse charge.

(e) Persons making inter-State supplies of taxable services up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir).

(f) Casual Taxable Persons making taxable supplies of specified handicraft goods up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.

(g) Persons making inter-State supplies of specified handicraft goods up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.

(h) Job workers making inter-State supply of services to a registered person up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir) subject to specified conditions.

(i) Persons making supplies of services through an electronic commerce operator (other than supplies specified under section 9(5) of the CGST Act) up to an aggregate turnover of ₹ 20 lakh (₹ 10 lakh in case of special category States except Jammu and Kashmir).

Question 6.
Answer the following questions with respect to casual taxable person under the CGST Act, 2017 : [May 2019, 5 Marks]
(i) Who is a casual taxable person?
(ii) Can a casual taxable person opt for the composition scheme?
(iii) When is the casual taxable person liable to get registered?
(iv) What is the validity period of the registration certificate issued to a casual taxable person?
(v) Can the validity of registration certificate issued to a casual taxable person be extended? If yes, what will be the period of extension?
Answer:
(i) Casual taxable person means a person who occasionally undertakes transactions involving supply of goods and/or services in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State/UT where he has no fixed place of business.

(ii) No, a casual taxable person cannot opt for the composition scheme.

(iii) A casual taxable person (CTP) is liable to obtain registration compulsorily under GST laws, at least 5 days prior to commencement of business. However, threshold limit of ₹ 20 lakh (₹ 10 lakh in case of Special Category States other than Jammu & Kashmir) is available in case of CTP making taxable supplies of specified handicraft goods.

(iv) The Registration Certificate issued to a casual taxable person will be valid for:
(a) Period specified in the registration application, or
(b) 90 days from the effective date of registration whichever is earlier.

(v) Yes, the validity of his registration certificate issued to a casual taxable person can be extended. It can be extended by a further period not exceeding 90 days.

Question 7.
There is a dairy farm selling milk and milk products in Delhi. The turnover of his dairy farm is as below :
Milk (Exempted) : ₹ 19,90,000
Butter (Taxable) : ₹ 50,000
What is the registration liability under GST for the abovementioned person assuming he has same PAN? [Nov. 2018 Old Course, 2 Marks]
Answer:

Statutory provision	In the given case
♦ Every supplier becomes liable to registration if his aggregate turn­over in a financial year exceeds ₹ 20 lakh in a State/UT [₹ 10 lakh in case of Special Category States other than Jammu and Kashmir]. ♦ Further, aggregate turnover, inter alia, means the aggregate value of all taxable supplies as well as exempt supplies.	♦  The aggregate turnover is ₹ 20,40,000 [₹ 19,90,000 + ₹ 50,000] ♦ Since aggregate turnover of the dairy farm in Delhi exceeds t 20 lakh, it is LIABLE to get registered.

Question 8.
Amit, a taxable person, is operating in Tamil Nadu, Punjab and West Bengal, with the same PAN. Can he operate with a single registration in West Bengal? [Nov. 2018 Old Course, 2 Marks]
Answer:
Statutory Provision:
Every person who is liable to take a registration will have to get registered z separately for each of the States where he has a business operation and is liable to pay GST.

In the given case:

Is there any taxable supplies from Tamil Nadu and Punjab	Can he operate with single registration
Yes	No, Amit cannot operate with a single registration in West Bengal
No	Yes, he can operate with a single registration in West Bengal.

Question 9.
Mr. Allan, a non-resident person, wishes to provide taxable supply of goods. He has no fixed place of business or residence in India. He seeksyour advise on the following aspects, relating to CGST Act, 2017: [Nov. 2018, 5 Marks]
(i) When shall he apply for registration?
(ii) Is PAN mandatory for his registration?
(iii) What is the period of validity of RC granted to him?
(iv) Will he able to extend the validity of his registration? IF yes, what will be the period of extension?
Answer:
Ans.
(i) Mr. Allan, being a non-resident person, should apply for registration, irrespective of the threshold limit, at least 5 days prior to the commencement of business.

(ii) No, PAN is not mandatory for his registration.
He has to submit a self-attested copy of his valid passport along with the application signed by his authorized signatory who is an Indian Resident having valid PAN.

However, in case of a business entity incorporated or established outside India, the application for registration shall be submitted along with its tax identification number or unique number on the basis of which the entity is identified by the Government of that country’ or its PAN, if available.

(iii) Registration Certificate granted to Mr. Allan will be valid for:
(a) Period specified in the registration application, or
(b) 90 days from the effective date of registration whichever is earlier.

(iv) Yes, Mr. Allan can get the validity of his registration extended. Registration can be extended further by a period not exceeding 90 days.

Question 10.
Can a person get himself voluntarily registered though he may not be liable to pay GST ? [Nov. 2018 Old Course, 2 Marks]
Answer:
Yes, a person, though not liable to be registered under section 22 or 24 of CGST Act, 2017 may get himself registered voluntarily. Once a person obtains voluntary registration, he has to pay tax even though his aggregate turnover does not exceed ₹ 20 Lakhs/ ₹ 10 Lakhs.

Question 11.
State with brief reason, whether following suppliers of taxable goods are required to register under the GST Law:
(i) Mr. Raghav Is engaged in wholesale-cum-retail trading of medicines in the State of Assam. His aggregate turnover during the financial year is ₹ 9,00,000 which consists of ₹ 8,00,000 as intra-State supply and ₹ 1,00,000 as inter-State supply.

(ii) Mr. S.N. Gupta of Rajasthan is engaged in trading of taxable goods on his own account and also acting as an agent of Mr. Rishi of Delhi. His turnover in the financial year 2017-18 is of ₹ 12 lakhs on his own account and ₹ 9 lakhs on behalf of principal. Both turnovers are intra-State supply. [May 2019, 4 Marks]
Answer:

Case	Statutory provision	In the given case
Mr. Raghav	♦ Person making any in­ter-State taxable supply of goods is required to obtain registration Compulsorily under GST laws irrespective of the quantum of aggregate turnover.	♦ Mr. Raghav is REQUIRED to obtain registration com­pulsorily under GST laws even though his aggregate turnover does not exceed the threshold limit of ₹ 10 lakh [since Assam is a Spe­cial Category State] in the financial year.
Mr. S.N. Gupta	♦ Persons who make taxable supply of goods on behalf of other taxable persons whether as an agent or oth­erwise are required to obtain registration compulsorily under GST laws irrespective of the quantum of aggregate turnover. ♦ Aggregate turnover includes all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.	♦ Since Mr. S.N. Gupta is also acting as an agent of Mr. Rishi of Delhi, he is REQUIRED to obtain registration com­pulsorily under GST laws.

Question 12.
Examine, with reason, whether registration is required under CGST Act, 2017 in the following independent Cases:
(i) Aadhav Computers of Gujarat is providing Computer Maintenance Service. Aggregate Turnover of Aadhav Computers is ₹ 15 Lakhs which comprises both inter-State and intra-State supply.

(ii) Soft Wings of West Bengal, exclusively trading in garments, supplies its taxable goods to various States in India. Aggregate Turnover of Soft Wings is ₹ 35 Lakhs [A/bv. 2019 Old Course, 4 Marks]
Answer:

 

	Case	Statutory provision	In the given case
(0	Aadhav Computers	♦ Registration is com­pulsory for suppliers engaged in inter-State supply. ♦ However, threshold ex­emption of ₹ 20 lakh [₹ 10 lakh in case of Specified Special Category States] is available in case of inter-State supply of taxable services only.	Aadhav Computers (aggre­gate turnover ₹ 15 lakh) is NOT REQUIRED to obtain registration as it is engaged in inter-State supply of taxable services and thus, is eligible for threshold exemption of ₹ 20 lakh applicable for Gujarat.
(ii)	Soft Wings	♦ The threshold limit for registration in the State of West Bengal for the persons engaged exclu­sively in supply of goods, is ₹ 40 lakh. ♦ However, registration is compulsory if the suppli­er is engaged inter-State supply of goods. The benefit of threshold limit is not available.	Thus, Soft Wings is RE­QUIRED to obtain registra­tion.

Question 13.
Explain the registration requirements under GST law in the following independent cases:
(i) Mr. Ahmad of Jammu engaged in the business of intra-State supplying tobacco based Pan Masala with an aggregate turnover of ₹ 24 lacs.
(ii) Mr. Lepcha of Mizoram is engaged in the supply of papers with an aggregate turnover of ₹ 13 lacs. Will your answer be different if Mr. Lepcha is located in Meghalaya? [Nov. 2019 Modified, 5 Marks]
Answer:

Case	Statutory provision	In the given case
Mr. Ahmad	♦ A person is eligible for enhanced threshold limit of ₹ 40 lakh in the UT of Jammu and Kashmir if he is engaged exclusively in intra-State supply of goods. ♦ However, the enhanced threshold limit is not ap­plicable if the person is engaged, inter alia, in the supply of pan masala and all goods of chapter 24 i.e. To­bacco and manufactured tobacco substitutes. In that case, the normal threshold limit of ₹ 20 lakh will be applicable.	Mr. Ahmad is LIABLE to register since his aggregate turnover (₹ 24 lakh) exceeds the applicable threshold limit for registration of ₹ 20 lakh.
Mr. Lepcha	CASE – 1: If located in Mizoram ♦ The enhanced threshold limit of ₹ 40 lakh as appli­cable to a person engaged exclusively in intra-State supply of goods is NOT applicable to Mizoram [a specified Special Category State]. ♦ Instead, a lower threshold limit of ₹ 10 lakh for reg­istration is applicable for Mizoram. CASE – 2: If located in Meghalaya ♦ The enhanced threshold limit of ₹ 40 lakh is also specifically not applicable in the State of Meghalaya. Instead, the normal thresh­old limit of ₹ 20 lakh for registration is applicable to it.	CASE – 1:  If located in Mizoram Mr. Lepcha of Mizoram is LIABLE to register since his aggregate turnover (₹ 13 lakh) exceeds the applicable threshold limit for registration of ₹ 10 lakh. CASE – 2: If located in Meghalaya If Mr. Lepcha is located in Meghalaya, he is NOT LIABLE to register since his aggregate turnover (₹ 13 lakh) does not exceed the applicable threshold limit for registration of ₹ 20 lakh.

Question 14.
Determine the effective date of registration under CGST Act, 2017 in respect of the following cases with explanation:
(i) The aggregate turnover of Varun Industries of Mumbai has exceeded ₹ 20 lakhs on 1st August, 2020. It submits the application for registration on 20th August, 2020. Registration certificate granted on 25th August, 2020.

(ii) Sweta InfoTech Services are the provider of internet services in Pune. The aggregate turnover of them exceeds ₹ 20 lakhs on 25th September, 2020. It submits the application for registration on 27th October, 2020. Registration certificate is granted on 5th November, 2020.    [May 2018 Old Course Modified, 4 Marks]
Answer:
Statutory Provision:
(1) When become liable for registration: A supplier whose aggregate turnover in a financial year exceeds ₹ 20 lakh in a State/UT [₹ 10 lakh in Manipur, Mizoram, Nagaland and Tripura] is liable to apply for registration within 30 days from the date of becoming liable to registration (i.e., the date of crossing the threshold limit of ₹ 20 lakh/₹ 10 lakh) vide section 22 of CGST Act, 2017.

(2) Effective date of registration: Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration: otherwise it is the date of grant of registration.

In the given cases:
The applicable turnover limit for registration will be ₹ 20 lakh as Maharashtra (Mumbai and Pune) is not a Special Category State.

	Date when becomes liable for registration	Date of application for registration	Whether applied within 30 days	Effective date of registration
(i)	1st August, 2020	20th August, 2020	Yes	1st August, 2020
(ii)	25th September, 2020	27th October, 2020	No	5th November, 2020

Question 15.
The Aggregate Turnover of Vikas Enterprise of Mumbai (Maharashtra) has exceeded ₹ 20 Lakhs on 25th January, 2020. It submits the application for Registration on 15th February, 2020.

Registration certificate is granted on 20th February, 2020. Determine the effective date of Registration under CGST Act, 2017. [Nov. 2018 Old Course, 2 Marks]
Answer:
Effective date of registration: Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration.

In the given case:

Date when becomes liable for registration	25th January, 2020
Date of application for registration	15th February, 2020
Whether applied within 30 days	Yes
Effective date of registration	Date when becomes liable i.e. 25th January, 2020

Question 16.
Determine the effective date of registration in the following instances:
(i) The aggregate turnover of Madhu Ltd., engaged in taxable supply of services in the state of Punjab, exceeded ₹ 20 Lakhs on 25th August, 2018. It applies for registration on 19th September, 2018 and is granted registration certificate on 29th September, 2018.

(ii) What will be your answer, if in the above scenario; Madhu Ltd. submits the application for registration on 27th September, 2018 and is granted registration on 5th October, 2018? [May 2018, 4 Marks]
Answer:
Statutory Provision:
(1) When become liable for registration: A supplier whose aggregate turnover in a financial year exceeds ₹ 20 lakh in a State/UT [2 10 lakh in Manipur, Mizoram, Nagaland and Tripura] is liable to apply for registration within 30 days from the date of becoming liable to registration (i.e., the date of crossing the threshold limit of ₹ 20 lakh/₹ 10 lakh) vide section 22 of CGST Act, 2017.

(2) Effective date of registration: Where the application is submitted within said period, the effective date of registration is the date on which the person becomes liable to registration; otherwise it is the date of grant of registration.

In the given cases:
The applicable turnover limit for registration will be ₹ 20 lakh as Maharashtra (Mumbai and Pune) is not a Special Category State.

	Date when becomes liable for registration	Date of application for registration	Whether applied within 30 days	Effective date of registration
(i)	25th August, 2017	19th September, 2017	Yes	25th August, 2017
(ii)	25th August, 2017	27th September, 2017	No	5th October, 2017

Question 17.
State with reason whether following statement is true or false:
“When there is change in constitution of business results in change in PAN, the business entity can apply for amendment of registration in prescribed manner within 15 days.” [May 2018 Old Course, 2 Marks]
Answer:
The said statement is FALSE:

When a change in constitution of a business results in change of PAN of the registered person, the said person shall apply for fresh registration. The reason for the same is that GSTIN is PAN based. Any change in PAN would warrant a new registration.

Question 18.
Determine with brief reasons, whether the following statements are True or False:

Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within three months from the date of Registration. [Nov. 2018, 1.5 Marks]
Answer:
The said statement is False

Registration under the CGST Act, 2017 can be cancelled by the proper officer, if the voluntarily registered person has not commenced the business within six months from the date of registration.