Manufacturer exempt from GST registration based on turnover threshold under APGST & CGST Acts. Compliance, registration advice provided.

The ruling determined that the manufacturer of Biris with turnovers below the prescribed threshold was not required to register under Sec. 22 of the APGST Act 2017 and CGST Act 2017. The applicant's compliance with Reverse Charge obligations and sales limited to within Andhra Pradesh were considered. It was clarified that registration was mandatory for suppliers exceeding the turnover threshold. The applicant was advised to maintain or cancel GSTIN registration as per Sec. 29 of the APGST Act 2017 in specific situations.

---

---

Issues:
1. Liability for registration under Sec. 22 of CGST, SGST Acts 2017 for a manufacturer of Biris with an annual turnover less than Rs. 20 lakhs.

Analysis:
The applicant, engaged in manufacturing Biris, sought an advance ruling regarding the mandatory registration under Sec. 22 of the APGST Act 2017 and CGST Act 2017. The applicant's turnover in the past three years was below Rs. 20 lakhs. The applicant clarified that they purchased raw materials from registered dealers within and outside Andhra Pradesh and sold the resultant Biris only within the state.

Upon examination, it was found that the applicant was aware of the liabilities under Reverse Charge and the necessity of registration if supplies were made outside Andhra Pradesh. The relevant statutory provision, Sec. 22 of the APGST Act 2017, mandates registration for suppliers with an aggregate turnover exceeding Rs. 20 lakhs in a financial year.

Considering the applicant's turnovers were below the threshold, the ruling concluded that registration under Sec. 22 of the APGST Act 2017 and CGST Act 2017 was not obligatory for the applicant based on the existing legal provisions. The applicant could either maintain the GSTIN registration or cancel it as per Sec. 29 of the APGST Act 2017 in case of business discontinuation or other specified circumstances.

---