How the Aggregate Turnover is calculated?
XYZ Pvt. Ltd. is a manufacturing unit in Mumbai, Maharashtra along with unit at Assam. Turnover details of all the units are as follows:
Mumbai Unit: ` 8 Lakhs
Assam Unit: ` 11 Lakhs
Assam Unit is a special category state wherein the registration limit is ` 10 lakhs. Hence, in the given case XYZ Pvt. Ltd would be required to take registration in Assam due to aggregate turnover being ` 11 Lakhs. Now it needs to be analyzed whether Mumbai unit also requires to get registered even though the aggregate turnover of all the units is less than ` 20 lakhs.
So even though aggregate turnover is less than 20 Lakhs, registration would be mandatory in Mumbai also by virtue of mandatory registration in Assam
— It means that for each State, the supplier liable for registration will have to take a separate registration even though such supplier may be supplying goods or services or both from more than one State as a single entity. The application for registration shall be made within 30 days from the date when he becomes liable for registration.
— It is necessary to admit the distinction between ‘person and taxable person’. Person is defined in the most familiar manner in section 2(84) and a taxable person is defined in section 2(107). A proper reading of section 22 helps us understand that a State is the smallest registrable unit in GST – except where multiple business verticals are registered separately under section 25. A taxable person is therefore the presence of the person in a State from where taxable supplies are made in the name of such person. When a person becomes liable to be registered in a State at any place from where taxable supplies are made therein such person shall be a taxable person.
— Casual taxable person or a non-resident taxable person shall apply for registration at least 5 days prior to the commencement of business.
— A person having multiple business verticals [as defined in Section 2(18)] in one State may obtain separate registrations for each of the business vertical, subject to prescribed conditions.
— Every registered person shall display his certificate of registration in a prominent location at his principal place of business and at every additional place or places of business.
— Every registered person shall display his Goods and Services Tax Identification Number on the name board exhibited at the entry of his principal place of business and at every additional place or places of business.
— For calculating the Threshold limit, the turnover shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals.
Further, supply of goods by a registered Job-worker, after completion of job work, shall be treated as the supply of goods by the “principal” referred to in section 143 (i.e. Job work procedure) of this Act. The value of such goods shall not be included in the aggregate turnover of the registered job worker.
— Every person who, on the day immediately preceding the appointed day, is registered or holds a license under an earlier law, shall be liable to be registered under this Act with effect from the appointed day.
— Every person being an Input Service Distributor shall make a separate application for registration as such Input Service Distributor.
— Every person having a unit in a Special Economic Zone or being a Special Economic Zone developer shall make a separate application for registration as a Business vertical distinct from his other units located outside the Special Economic Zone.
— Where a person who is liable to be registered under this Act fails to obtain registration, the proper officer can proceed to register such person in the manner as may be prescribed
— The registration shall be effective from the date on which the person becomes liable to registration where the application for registration has been submitted within a period of thirty days from such date. Where an application for registration has been submitted by the applicant after the expiry of thirty days from the date of his becoming liable to registration, the effective date of registration shall be the date of the grant of registration