Threshold Limit

[Kaustubh Karandikar]

XYZ's turnover for supply of goods is ₹ 5 Lakh and supply of service is ₹ 18 Lakhs. Is he required to obtain GST Registration?

[Rajagopalan Ranganathan]

Sir,

According to third proviso to Section 22 (1) of CGST Act, the Government may, at the request of a State and on the recommendations of the Council, enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods, subject to such conditions and limitations, as may be notified.

Since in your case the aggregate turnover is 23 lakhs (supply of goods valued ₹ 5 lakhs and supply of service valued ₹ 18 lakhs) you have to take registration since the aggregate turnover exceeds ₹ 20 lakhs.

[KASTURI SETHI]

As per language of Section 22, XYZ is legally bound to apply for registration.

[DR.MARIAPPAN GOVINDARAJAN]

Liable to registration

AI Summary

Individual with 23 lakh turnover from goods and services must register for GST under Section 22 of CGST Act. A query was raised regarding whether an individual with a turnover of 5 lakh from goods and 18 lakh from services needs to register for GST. The responses clarified that under Section 22 of the CGST Act, the individual must register for GST as their aggregate turnover of 23 lakh exceeds the threshold of 20 lakh, which necessitates registration. The provision allows for a higher threshold for goods supply only, but since services are involved, the standard threshold applies.