Liability for Registration Based on Aggregate Turnover:
Every supplier shall be liable to be registered under this Law in the State from where he makes a taxable supply of goods and/or services if his aggregate turnover in a financial year exceeds threshold:
• Threshold for registration is [Rs. 9 Lakh]
• Threshold in north eastern States including Sikkim is [Rs. 4 Lakh]
Note: however certain categories of persons will be liable to get registered irrespective of threshold. [See para 5 of Schedule III]
Note: Excluding cases where threshold is not applicable, the liability to pay tax , however, will start only when the registered person reaches a threshold limit of turnover [Rs.10 lakhs] and [Rs. 5 lakhs] respectively. [See section 9 (1)]
| What is the meaning of aggregate turnover?
As per section 2 (6) of the Law, aggregate turnover includes the aggregate value of:
all taxable and non-taxable supplies,
exempt supplies, and
exports of goods and/or service of a person having the same PAN, to be computed on all India basis and excludes taxes charged under the CGST Act, SGST Act and the IGST Act:
Aggregate turnover does not include:
value of supplies on which tax is levied on reverse charge basis, and
value of inward supplies. |
The taxable threshold shall include all supplies made by the taxable person, whether on his own account or made on behalf of all his principals (by an agent).
The supply of goods, after completion of job-work, by a registered job-worker shall be treated as the supply of goods by the “principal” and the value of such goods shall not be included in the aggregate turnover of the registered job worker.