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

GST registration threshold determines obligation; aggregate turnover including goods and services triggers mandatory registration when exceeded.
Registration for GST is determined by aggregate turnover including both goods and services; only suppliers exclusively of goods may benefit from a government-notified higher threshold. If combined turnover exceeds the statutory threshold, GST registration is required.