Learn when to take registration under GST Act

Section 22 of CGST Act explains the registration requirement in the State/ Union territory and in the  special category States on the basis of aggregate turnover in a financial year.

Let us understand the said provision through the practical Case Scenario

Case Scenario: 1

XY & Associates engages in supply of legal services. His turnover is as follows:

Particulars	Amount (In Rs.)
Tamil Nadu (Head office)	8,85,000
Maharashtra branch	7,20,000
Uttar Pradesh branch	8,50,000
Services provided by “REX” the GTA to XY & Associates	64,000
They also supplied services to Government of Maharashtra in one of the cases	5,50,000

Calculate the total turnover & registration requirement of XY & Associates as per Section 22 of CGST Act, 2017.

Solution:

As per provision of Section 22 of CGST Act, 2017 every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds 20 lakh rupees:

For the purposes of this section,

 “aggregate turnover” shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals;

“aggregate turnover” to include total turnover of all branches under same PAN

Value of exported goods/services, exempted goods/services, inter-state supplies between distinct person having same PAN to be included in aggregate turnover. If his aggregate turnover exceeds Rs.20 lakhs then he is liable for registration under Section 22 of CGST Act, 2017

On the basis of above provision, calculation of aggregate turnover should be as follows:

Particulars	Amount (In Rs.)
Tamil Nadu (Head office)	8,85,000
Maharashtra branch	7,20,000
Uttar Pradesh branch	8,50,000
Services provided by “REX” the GTA to XY & Associates	–
They also supplied services to Government of Maharashtra in one of the cases	5,50,000
Total	30,05,000

Thus, he is liable to registered under Section 22 of CGST Act, 2017.

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