Working Notes:<\/p>\n
- \n
- Petroleum products are covered under non-taxable supply. Therefore it includes under exempt supply and aggregate turnover includes exempt supplies<\/li>\n
- Goods directly supplied from the job worker’s premises. It would be included in the \u2018aggregate turnover\u2019 of the principal<\/li>\n
- Export supplies are specifically included in aggregate turnover<\/li>\n
- Supply to its own additional place of business in Rajasthan, Since they are deemed to be supply. Hence, it is part of aggregate turnover<\/li>\n
- 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<\/li>\n<\/ol>\n
Examiner\u2019s Comment<\/strong>
\nMost of the examinees provided elusive answers. The inclusion\/exclusion of various supplies for calculating aggregate turnover for the purpose of registration under CGST Act, 2017 was not amply corroborated by legal provisions.<\/p>\n![\"Registration](\"https:\/\/gstguntur.com\/wp-content\/uploads\/2021\/10\/GST-Guntur.png\")
<\/p>\nQuestion 2.
\nFrom the following information you are required to calculate the Aggregate turnover for the purpose of registration under section 22(1).<\/p>\n\n\n
\n Particulars<\/td>\n Amount (\u20b9)<\/td>\n<\/tr>\n \n (1) Intra-State supply of goods chargeable with GST @ 18%<\/td>\n 6,75,000<\/td>\n<\/tr>\n \n (2) Intra-State supply of goods which are exempt from GST under section 11 of CGST Act, 2017<\/td>\n 5,35,900<\/td>\n<\/tr>\n \n (3) Intra-State supply of goods chargeable with Nil rate<\/td>\n 7,89,125<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Answer:
\nAs per Section 2(6) of CGST Act, 2017, \u201cAggregate turnover\u201d 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.<\/p>\nComputation of Aggregate turnover:<\/p>\n
\n\n
\n Particulars<\/td>\n Amount (\u20b9)<\/td>\n<\/tr>\n \n Intra-State supply of goods chargeable with GST @18%<\/td>\n 6,75,000<\/td>\n<\/tr>\n \n Intra-State supply of goods which are exempt from GST<\/td>\n 5,35,900<\/td>\n<\/tr>\n \n Intra-State supply of goods chargeable with Nil rate of GST<\/td>\n 7,89,125<\/td>\n<\/tr>\n \n Aggregate Turnover as per section 2(6)<\/td>\n 20,00,025<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Question 3.
\nRajesh Dynamics, having its head office in Chennai, carries on the following activities with respective turnovers in a financial year:<\/p>\n\n\n
\n <\/td>\n Amount (\u20b9)<\/td>\n<\/tr>\n \n Supply of petrol at Chennai<\/td>\n 18,00,000<\/td>\n<\/tr>\n \n Value of inward supplies on which tax is payable on reverse charge basis<\/td>\n 9,00,000<\/td>\n<\/tr>\n \n Supply of transformer oil at Chennai<\/td>\n 2,00,000<\/td>\n<\/tr>\n \n Value of branch transfer from Chennai to Bengaluru without payment of con\u00adsideration<\/td>\n 1,50,000<\/td>\n<\/tr>\n \n Value of taxable supplies at Manipur branch<\/td>\n 11,50,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n It argues that it does not have taxable turnover crossing threshold limit of \u20b9 20,00,000 either at Chennai or Bengaluru and including turnover at Manipur branch. It believes that the determination of aggregate turnover is not required for the purpose of obtaining registration but is required for determining composition levy.
\nDecide based on the above facts:
\n(i) The aggregate turnover of Rajesh Dynamics.
\n(ii) All conditions that fulfil the requirements for registration under CGST Act, 2017 in the given circumstances. [May 2018, (Old), 4 Marks]
\nAnswer:
\nComputation of Aggregate Turnover of Rajesh Dynamics<\/p>\n\n\n
\n Particulars<\/td>\n Amount (\u20b9)<\/td>\n<\/tr>\n \n Supply of petrol at Chennai [Being a non-taxable supply, it is an exempt supply and thus, includible in aggregate turnover vide section 2(6) of CGST Act, 2017]<\/td>\n 18,00,000<\/td>\n<\/tr>\n \n Value of inward supplies on which tax is payable on reverse charge basis<\/td>\n Nil<\/td>\n<\/tr>\n \n Supply of transformer oil at Chennai<\/td>\n 2,00,000<\/td>\n<\/tr>\n \n Value of branch transfer from Chennai to Bengaluru without payment of consideration [Being a taxable supply, it is includible in aggregate turnover]<\/td>\n 1,50,000<\/td>\n<\/tr>\n \n Value of taxable supplies of Manipur Branch<\/td>\n 11,50,000<\/td>\n<\/tr>\n \n Aggregate turnover<\/td>\n 33,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 1. Rajesh Dynamics\u2019 argument that it is not liable to registration since the threshold exemption of \u20b9 20 lakh is not being crossed either at Chennai, Bengaluru or Manipur is not correct as firstly, the aggregate turnover to be considered in its case is \u20b9 10 lakh and not X 20 lakh and secondly, the same is computed on all India basis and not State-wise.<\/p>\n
2. Further, Rajesh Dynamics is also wrong in believing that aggregate turnover is computed only for the purpose of determining the eligibility limit for composition levy since the aggregate turnover is required for determining the eligibility for both registration and composition levy.<\/p>\n
3. However, Rajesh Dynamics is compulsorily required to register under section 24 of the CGST Act, 2017 irrespective of the turnover limit as it is liable to pay tax on inward supplies under reverse charge and it also makes inter-State taxable supply.<\/p>\n
<\/p>\nQuestion 4.
\nLMN Pvt. Ltd., Coimbatore exclusively manufactures and sells product \u2018X\u2019 which is exempt from GST vide notifications issued under relevant GST legislations. The company sells \u2018X\u2019 only within Tamil Nadu. The turnover of the company in the previous year was \u20b9 45 lakh. The company expects the sales to grow by 30% in the current year. The company purchased additional machinery for manufacturing \u2018X\u2019 on 01.07.20XX. The purchase price of the capital goods was \u20b9 30 lakh exclusive of GST @ 18%.<\/p>\nHowever, effective from 01.11.20XX, exemption available on \u2018X’ was withdrawn by the Central Government and GST @ 12% was imposed thereon. The turnover of the company for the half year ended on 30.09.20XX was \u20b9 45 lakh.<\/p>\n
(a) Examine the above scenario and advise LMN Pvt Ltd. whether it needs to get registered under GST.
\n(b) If the answer to the above question is in affirmative, advise LMN Pvt. Ltd. whether it can avail input tax credit on the additional machinery purchased exclusively for manufacturing \u201cX\u201d? [RTP, Nov. 2019]
\nAnswer:
\n(a) Examination of given case study:<\/p>\nStatutory Provisions<\/p>\n
Section 22(1) of the CGST Act, 2017 read with Notification No. 10\/2019<\/p>\n
- \n
- Every supplier who is engaged \u00a1n intra-State exclusive supply of goods<\/li>\n
- is liable to be registered under GST in the State\/Union territory<\/li>\n
- from where he makes the taxable supply of GOODS only (Not Services)<\/li>\n
- when aggregate turnover in a financial year exceeds \u20b9 40,00,000.<\/li>\n<\/ul>\n
Non-applicability<\/p>\n
- \n
- The above provisions are NOT applicable to few specified States<\/li>\n
- i.e. States of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherrv, Sikkim, Telangana, Tripura, Uttarakhand.<\/li>\n<\/ul>\n
Analysis of given case<\/p>\n
Liability for Registration<\/p>\n
- \n
- The turnover of the company for the half year ended on 30.09.2OXX is \u20b9 45 lakh which is more than the applicable threshold limit of \u20b9 40 lakh.<\/li>\n
- Therefore, the company should be liable to registration.<\/li>\n
- However, since LMN Pvt. Ltd. supplied exempted goods till 31.1 0.2OXX, it was not required to be registered till that day; though voluntary registration was allowed under section 25(3) of the CGST Act, 2017.<\/li>\n<\/ul>\n
w.e.f. 1-11-2OXX<\/p>\n
The position will change from 01.11 .2OXX as the supply of goods become taxable from that day and the turnover of company is above \u20b9 40 lakh.<\/p>\n
It is important to note here that in terms of section 2(6) of the CGST Act, 2017, the aggregate turnover limit of \u20b9 40 lakh includes exempt turnover also. Therefore, turnover of \u2018X\u2019 will be considered for determining the limit of 40 lakh even though the same was exempt from GST.<\/p>\n
Therefore, the company needs to register within 30 days from 01.11.2OXX (the date on which it becomes Liable to registration) in terms of section 25(1) of the CGST Act, 2017.<\/p>\n
(b) Availability of ITC:<\/p>\n
Statutory Provisions<\/p>\n
Section 18(1)(a) of the CGSTAct, 2017:
\nA person who has applied for registration within 30 days from the date on which he becomes liable to registration and has been granted such registration shall be entitled to take credit of input tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act.<\/p>\nAnalysis of given case
\nThus, LMN Pvt. Ltd. cannot avail credit for additional machinery purchased exclusively for manufacturing X\u201d as input tax credit of only inputs is allowed when a person gets registered for the first time.<\/p>\n<\/p>\nQuestion 5.
\nMahadev Enterprises, a sole proprietorship firm, opened a shopping complex dealing in supply of goods at multiple locations, i.e. in Himachal Pradesh, Uttarakhand and Tripura in the month of June.
\nIt has furnished the following details relating to the sale made at such multiple locations for the month of June:<\/p>\n\n\n
\n Particulars<\/td>\n Himachal Pradesh<\/td>\n Uttara\u00adkhand<\/td>\n Tripura<\/td>\n<\/tr>\n \n <\/td>\n Amount excluding GST<\/td>\n<\/tr>\n \n Intra- State sale of taxable goods<\/td>\n 22,50,000<\/td>\n –<\/td>\n 7,00,000<\/td>\n<\/tr>\n \n Intra-State sale of exempted goods<\/td>\n –<\/td>\n –<\/td>\n 6,00,000<\/td>\n<\/tr>\n \n Interest received from banks on the<\/td>\n –<\/td>\n –<\/td>\n 60,000<\/td>\n<\/tr>\n \n fixed deposits<\/td>\n <\/td>\n <\/td>\n <\/td>\n<\/tr>\n \n Intra-State sale of non-taxable goods<\/td>\n –<\/td>\n 21,00,000<\/td>\n 40,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n With the help of the above mentioned Information, answer the following questions giving reasons:<\/p>\n
(1) Determine whether Mahadev Enterprises is liable to be registered under GST law and what is the threshold limit of taking registration in this case.<\/p>\n
(2) Explain with reasons whether your answer in (1) will change in the following Independent
\ncases:<\/p>\n(a) If Mahadev Enterprises Is dealing In taxable supply of goods only from Himachal Pradesh;
\n(b) If Mahadev Enterprises Is dealing in taxable supply of goods and services only from Himachal Pradesh;
\n(c) If Mahadev Enterprises Is dealing in taxable supply of goods only from Himachal Pradesh and has also effected InterState supplies of taxable goods amounting to \u20b9 4,00,000. [Nov. 2019, RTP]
\nAnswer:
\nLiability for Registration
\nAs per section 22 of the CGSTAct, 2017 read with Notification No. 10\/2019. A supplier is liable to be registered in the State\/Unio\u00f1territory from where he makes a taxable supply of goods and\/or services, if his aggregate turnover in a financial year exeeds the threshold limit.<\/p>\nExclusive supply of goods<\/p>\n
The threshold limit for a person making exclusive intra- State taxable supplies of goods is as under:<\/p>\n
- \n
- \u20b9 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.<\/li>\n
- \u20b9 20 lakh for the States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and Uttarakhand.<\/li>\n
- \u20b9<\/em>\u00a040 lakh for rest of India.<\/li>\n<\/ol>\n
Exclusive supply of services or supply of both goods and services<\/p>\n
The threshold limit for a person making exclusive taxable supply of services or supply of both goods and services is as under:<\/p>\n
- \n
- \u20b9 10 lakh for the States of Mizoram, Tripura, Manipur and Nagaland.<\/li>\n
- \u20b9 20 lakh for the rest of India.<\/li>\n<\/ol>\n
As per section 2(6 of the CGST Act, 2017, aggregate turnover includes the aggregate value of:<\/p>\n
- \n
- all taxable supplies,<\/li>\n
- all exempt supplies,<\/li>\n
- exports of goods and\/or services and<\/li>\n
- all inter-State supplies of persons having the same PAN. The above is computed on all India basis.<\/li>\n<\/ol>\n
Computation of State-wise aggregate turnover of Mahadev Enterprises<\/p>\n
\n\n
\n Particulars<\/td>\n Himachal Pradesh<\/td>\n Uttara\u00adkhand<\/td>\n Tripura<\/td>\n<\/tr>\n \n <\/td>\n Amount exclusive of GST<\/td>\n<\/tr>\n \n Intra- State sale of taxable goods<\/td>\n 22,50,000<\/td>\n –<\/td>\n 7,00,000<\/td>\n<\/tr>\n \n Intra-State sale of exempted goods<\/td>\n –<\/td>\n –<\/td>\n 6,00,000<\/td>\n<\/tr>\n \n Interest received from banks on the fixed deposits [Note-1]<\/td>\n –<\/td>\n –<\/td>\n 60,000<\/td>\n<\/tr>\n \n Intra-State sale of non-taxable goods [Note-2]<\/td>\n –<\/td>\n 21,00,000<\/td>\n 40,000<\/td>\n<\/tr>\n \n Aggregate Turnover<\/td>\n 22,50,000<\/td>\n 21,00,000<\/td>\n 14,00,000<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Statutory Provisions<\/p>\n
1. Services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount (other than interest involved in credit card services) is exempt vide Notification No. 12\/2017. Since aggregate turn over includes exempt supply.<\/p>\n
2. As per section 2(47) of the CGST Act, 2017. Exempt supply includes non-taxable supply. Thus, intra State supply of non-taxable goods in Uttarakhand, being a non-taxable supply, is an exempt supply and is, therefore, included in the aggregate turnover.<\/p>\n
Analysis<\/p>\n
Mahadev Enterprises is engaged in exclusive intra-State supply of goods from Himachal Pradesh and Uttarakhand and in supply of both goods and exempted services from Tripura, the threshold limit for
\nregistration will be \u20b9 40 lakh, \u20b9 20 lakh and \u20b9 10 lakh respectively.<\/p>\nFurther, since Mahadev Enterprises also makes taxable supply of goods from one of the specified Special Category States (i.e. Tripura), the threshold limit for registration will be reduced to \u20b9 10 lakh.<\/p>\n
Requirement of Registration<\/p>\n
\n\n
\n Case<\/td>\n Answer<\/td>\n<\/tr>\n \n Whether Mahadev Enterprises is li\u00adable to be registered under GST law<\/td>\n \u2666 Mahadev Enterprises is liable to be registered under GST law with the aggregate turnover amounting to \u20b9 57,50,000 (computed on all India basis). The applicable threshold limit of registration in this case is \u20b9 10 lakh.<\/td>\n<\/tr>\n \n If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh<\/td>\n The applicable threshold limit of registration would be \u20b9 40 lakh. Thus, Mahadev Enterprises will not be liable for registration as its aggregate turnover would be \u20b9 22,50,000.<\/td>\n<\/tr>\n \n If Mahadev Enterprises is dealing in taxable supply of goods and services only from Himachal Pradesh<\/td>\n The higher threshold limit of Rs.40 lakh will not be applicable as the same applies only in case of exclusive supply of goods. Therefore, in this case, the applicable threshold limit will be Rs.20 lakh and hence, Mahadev Enterprises will be liable to registration.<\/td>\n<\/tr>\n \n If Mahadev Enterprises is dealing in taxable supply of goods only from Himachal Pradesh and has also effected inter-State supplies of taxable goods amounting to \u20b9 4,00,000.<\/td>\n In case of inter-State supplies of taxable goods, section 24 of the CGST Act, 2017 requires compulsory registration irrespective of the quantum of aggregate turnover. Thus, Mahadev Enterprises will be liable to registration.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n <\/p>\nQuestion 6.
\nAB Pvt. Ltd., Pune provides house-keeping services. The company supplies its services exclusively through an e-commerce website owned and managed by Hi-Tech Indya Pvt. Ltd., Pune. The turnover of AB Pvt. Ltd. in the current financial year is \u20b9 18 lakh.<\/p>\nAdvise AB Pvt. Ltd. as to whether they are required to obtain GST registration. Will your advice be any different if AB Pvt. Ltd. sells readymade garments exclusively through the e-commerce website owned and managed by Hi-Tech Indya Pvt. Ltd.? [MTP, May 2018, Nov. 2018, 6 Marks]
\nAnswer:
\nStatutory Provisions:
\n(a) As per section 22 of the CGST Act:<\/p>\n- \n
- Every supplier of goods or services or both is required to obtain registration<\/li>\n
- in the State\/Union territory from where he makes the taxable supply<\/li>\n
- if his aggregate turnover exceeds threshold limit (40 lakhs\/20 lakhs\/10 lakhs)<\/li>\n
- in a financial year.<\/li>\n<\/ul>\n
(b) As per section 24 of the CGST Act:<\/p>\n
- \n
- This section enlists certain categories of persons<\/li>\n
- who are mandatorily required to obtain registration<\/li>\n
- irrespective of their turnover.<\/li>\n<\/ul>\n
In case of ECO: Persons who supply goods or services (In case of services if aggregate turnover not exceeding threshold limit, registration is not required NN 65\/2017) or both through such electronic commerce operator (ECO), who is required to collect tax at source under section 52, is one such person specified under clause (ix) of section 24. However, where the ECO is liable to pay tax on behalf of the suppliers of services under a notification issued under section 9(5), the suppliers of such services are entitled for threshold exemption.<\/p>\n
(c) As per Notification No. 17\/2017 CT (R) dated 28.06.2017: issued under section 9(5) specifies services by way of house-keeping, except where the person supplying such service through ECO is liable for registration under section 22(1), as one such service where the ECO is liable to pay tax on behalf of the suppliers.<\/p>\n
In the given case:<\/p>\n
AB Pvt. Ltd. provides house keeping services through an ECO.
\nIt is presumed that Hi-Tech Indya is an ECO which is required to collect tax at source under section 52. However, house-keeping services provided by AB Pvt. Ltd., which is not liable for registration under section 22(1) as its turnover is less than threshold limit (20 lakhs) is a service notified under section 9(5). Thus, AB Pvt. Ltd. will be entitled for threshold exemption for registration and will not be required to obtain registration even though it supplies services through ECO.<\/p>\nAB Pvt. Ltd. sells readymade garments through ECO.
\nSuch supply cannot be notified under section 9(5) as only supplies of services are notified under that section. Therefore, in this case, AB Pvt. Ltd. will not be entitled for threshold exemption and will have to compulsorily obtain registration in terms of section 24(ix).<\/p>\nQuestion 7.
\nPari & Sons is an unregistered dealer and exclusively trades in goods in UP. The threshold limit of registration is \u20b9 40 Lakhs as per the provisions of section 22(1) of CGST Act read with Notification No. 10\/2019 CT dated 7-3-2019. On 10th August, 2020 aggregate turnover of Pari & Sons exceeded \u20b9 40,00,000. The firm applied for registration on 27th August, 2020 and was granted the registration certificate on 1st September, 2020.<\/p>\nUnder CGST Rules, 2017, you are required to advise Pari & Sons as to what is the effective date of registration in its case. It has also sought your advice regarding period for issuance of revised tax invoices. [May 2018 Modified , 5 Marks]
\nAnswer:<\/p>\nEffective date of registration<\/p>\n
Statutory Provisions:
\nSection 25(1) of CGST Act, 2017 read with Rule 10 of CGST Rules, 2017.<\/p>\n\n\n
\n WHERE AN APPLICANT SUBMITS APPLICATION FOR REGISTRATION<\/td>\n EFFECTIVE DATE OF REGISTRATION<\/td>\n<\/tr>\n \n Within 30 days from the date he becomes liable to registration.<\/td>\n The date on which he become liable to registration.<\/td>\n<\/tr>\n \n After 30 days from the date he becomes liable to registration.<\/td>\n Date of grant of registration.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n In the given case:<\/p>\n
- \n
- Pari and Son\u2019s turnover exceeded 40 lakh on 10th August, it becomes liable to registration on same day.<\/li>\n
- It applied for registration within 30 days of so becoming liable to registration.<\/li>\n
- The effective date of registration is date on which he becomes liable to registration.<\/li>\n
- So, the effective date of registration is 10th August 2020:<\/li>\n<\/ul>\n
Revision of Invoices<\/p>\n
Statutory Provisions:
\nSection 31 read with Rules, 2017:<\/p>\nEvery registered person who has been granted registration with effect from a date earlier than date of issuance of certificate of registration to him, may issue revised tax invoices.<\/p>\n
Revised tax invoices shall be issued within 1 month from the date of issuance of registration in respect of taxable supplies affected during the period starting from the effective date of registration till the date of issuance of certificate of registration.<\/p>\n
In the given case:<\/p>\n
- \n
- Pari and Son\u2019s has to issue the revised tax invoices<\/li>\n
- in respect of taxable supplies effected<\/li>\n
- during the period starting from the effective date of registration (10th August 2020) till the date of issuance of certificate of registration (1st September 2020)<\/li>\n
- Within 1 month from the date of issuance of certificate of registration, i.e., on or before 1st October 2020.<\/li>\n<\/ul>\n<\/p>\n
Question 8.
\nWrite snort noies on the proceaure ror Registration under GST.
\nAnswer:
\nThe following is the procedure for registration:<\/p>\nStep 1
\nAs per Section 25 of CGST Act, 2017 : Every person who is liable to be registered shall, apply for registration within 30 days from the date on which he becomes liable to registration, before applying for registration declare his:<\/p>\n- \n
- Legal name of business<\/li>\n
- PAN<\/li>\n
- Mobile Number<\/li>\n
- E-mail address<\/li>\n
- State or Union territor<\/li>\n<\/ol>\n
Step 2<\/p>\n
- \n
- Temporary Reference Number (TRN) is generated and communicated to the applicant on the validated mobile number and e-mail address.<\/li>\n
- Using TRN, applicant shall electronically subm\u00eet application in Part B of application form, along with specified documents at the Common Portal.<\/li>\n
- On receipt of such application, an acknowledgement in the prescribed form shall be issued to the applicant electronically.<\/li>\n<\/ol>\n
Step 3<\/p>\n
1. If all documents are found to be in order, the proper office shall approve the registration within 3 working days from the date of submission.<\/p>\n
2. Certification of Registration shall be granted in From GST-REG-06. Certification of Registration contains Goods and Services Tax identification Number (GSTIN), two characters for the State code, ten characters for the PAN, two characters for the entity code and one check sum character.<\/p>\n
Question 9.
\nWhat is the validity period of the registration certificate issued to a casual taxable person and non-resident taxable person? [MTP, Nov. 2018, 4 Marks]
\nAnswer:
\nIn accordance with the provisions of section 27(1) read with proviso thereto Validity of Certificate Issued:<\/p>\nThe certificate of registration issued to a \u2018\u2018casual taxable person\u201d or a \u201cnon-resident taxable person\u201d shall be valid for<\/p>\n
\n\n
\n Period specified in the application for registration
\nor
\n90 days from the effective date of registration<\/td>\nWhichever is earlier<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Extension of Validity:<\/p>\n
- \n
- The proper officer, at the request of the said taxable person, may extend the validity of the aforesaid period of 90 days<\/li>\n
- by a further period not exceeding 90 days.<\/li>\n<\/ul>\n
Question 10.
\nHurbert Davis, a NRI, does not have fixed place of business or residence in India. He conies to Mumbai to provide his services in relation with training of animals to Ekta Kapoor, a film producer. The remuneration has been fixed on per day basis. This activity of Mr. Hurbert is not in the course or furtherance of his business. The recipient Ekta Kapoor is unregistered person. The PA of Hurbert Davis has the opinion that registration is not required as this activity is not in furtherance of business. Comment.
\nAnswer:<\/p>\n- \n
- Mr. Hurbert is a non-resident taxable person as per the definition of NRTP given under CGST Act.<\/li>\n
- The condition of \u201cactivity in furtherance of Business” is not required for non-resident.<\/li>\n
- Therefore, Mr. Hurbert shall be liable for compulsory registration under section 24 of CGST Act, 2017.<\/li>\n<\/ul>\n
Question 11.
\nWhat is the threshold limit for Casual Taxable Person (CTP) and Non-Resident Taxable Person (NRTP)? Is there any time limit for registration?
\nAnswer:<\/p>\n- \n
- The special provisions for grant of registration in case of Non-Resident Taxable Person (NRTP) and Casual Taxable Person (CTP) are provided in Sections 25 & 27 to be read with rules 13 &15.<\/li>\n
- As per these provisions, both CRTP and NRTP have to compulsorily get registered under GST irrespective of the threshold limit.<\/li>\n
- They are required to obtain registration at least 5 days prior to the commencement of business.<\/li>\n
- Thus, no threshold limit is applicable.<\/li>\n<\/ul>\n<\/p>\n
Question 12.
\nWhat are the differences as regards registration of Casual Taxable Person (CTP) and under CGST Act, 2017?
\nAnswer:
\nOn the basis of special provisions provided in Sections 25 & 27 to be read with rules 13 & 15, the following are the points of differences:<\/p>\n\n\n
\n <\/td>\n Casual Taxable Person (CTP)<\/td>\n Non-Resident Taxable Person (NRTP)<\/td>\n<\/tr>\n \n Submission of application for registration<\/td>\n Form GST REG 01<\/td>\n FORM GST REG-09<\/td>\n<\/tr>\n \n Requirement of PAN<\/td>\n Required<\/td>\n Not required PAN rather 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.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Question 13.
\nDiscuss the procedure for amendment of registration under CGST Act and rules thereto? [MTP May 18, 4 Marks]
\nAnswer:
\nAmendment of Registration [Section 28 read with Rule 19]<\/p>\nWhere approval is required<\/p>\n
- \n
- In case the change is for legal name of the business, or the State of Place of Business or additional place of business.<\/li>\n
- The taxable person will apply for amendments within 15 days of the event necessitating the change.<\/li>\n
- The Proper Officer, then will approve the amendment within the next 15 days.<\/li>\n<\/ul>\n
Approval is not required<\/p>\n
- \n
- For other changes like the name of day to day functionaries, e-mail ID\u2019s, mobile numbers etc.<\/li>\n
- No approval of the Proper Officer is required<\/li>\n
- The amendments can be affected by the taxable person in his own on the common portal.<\/li>\n<\/ul>\n
Change in PAN:
\nThe registration under GST is \u2018PAN\u2019 based. Therefore, if the change in the constitution of any business results in change in PAN of a registered person, the said person shall apply for fresh registration.<\/p>\n<\/p>\nQuestion 14.
\nDharma Dutta has taken voluntary registration and has not opted for the composition scheme of levy. He is aggrieved by the cancellation of his registration under GST, although he is filing NIL returns, as he has not conducted any business for the past 8 months. He wants to know the circumstances under which the proper officer can cancel registration on his own. [Nov. 2019, 4 Marks]
\nAnswer:
\nAs per section 29(2): Cancellation of registration by proper officer
\nThe proper officer may cancel the registration of a person from such date, including any retrospective date, as he may deem fit, where –<\/p>\n\n\n
\n (a) A registered person has contravened such provisions of the Act or the rules made thereunder i.e. –<\/p>\n i. He does not conduct any business from the declared place of business; or
\nii He issues invoice or bill without supply of goods or services in the violation of the provision of this Act, or the rules made thereunder.
\niii. He violates the provisions of section 171 of the Act or the rules made thereunder;
\niv. Violates the provision of rule 10A.
\nNote: Section 171 provides for Anti-profiteering Measure.<\/td>\nContravention of Provisions of Act<\/td>\n<\/tr>\n \n (b) A person paying tax under section 10 i.e. composition scheme has not furnished returns for consecutive tax periods; or<\/td>\n No filing of return<\/td>\n<\/tr>\n \n (c) Any registration person, other than a person specified in section 29(2)(b), has not furnished returns for a continuous period of 6 months; or<\/td>\n<\/tr>\n \n (d) Any person who has taken voluntary registration under section 25(3) has not commenced business within 6 months from the date of registration; or<\/td>\n Business Not commenced<\/td>\n<\/tr>\n \n (e) Registration has been obtained by means of fraud, wilful misstatement or suppression of facts.<\/td>\n Fraud, etc.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Opportunity of being heard. The proper officer shall not cancel the registration without giving the person an opportunity of being heard.<\/p>\n","protected":false},"excerpt":{"rendered":"
Registration \u2013 CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern. Registration \u2013 CA Final IDT 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 …<\/p>\n