Examine whether the supplier of goods is liable to get registered in the following independent cases: (i) Om Sai Builders of Rohini, Delhi is…

(a) As per section 22 of the CGST Act, 2017 read with Notification No. 10/2019 CT dated 07.03.2019, a supplier is liable to get registered in the State/Union territory from where he makes a taxable supply of goods and/or services, if his aggregate turnover in a financial year exceeds the threshold limit. The threshold limit for a person making exclusive intra-State taxable supplies of goods is as under:- (a) 10lakh for the Special Category States of Mizoram, Tripura, Manipur and Nagaland. (b) 20lakh for the States, namely, States of Arunachal Pradesh, Meghalaya, Puducherry, Sikkim, Telangana and Uttarakhand. (c) 40lakh for rest of India except persons engaged in making supplies of fly ash bricks/blocks, building bricks, bricks of fossil meals, earthen/roofing tiles, ice cream and other edible ice, whether or not containing cocoa, Pan masala and Tobacco and manufactured tobacco substitutes. In the light of the afore-mentioned provisions, the answer to the independent cases is as under: (i) The benefit of enhanced threshold limit of registration of 40lakh is not applicable for Om Sai brothers even though it is exclusively engaged in intra-State taxable supply of goods in Delhi as it is engaged in making supplies of building bricks. Thus, the applicable threshold limit for registration for Om Sai Builders in the given case is 20lakh. Thus, it is liable to get registered under GST as it's turnover is more than the threshold limit. (ii) Hukum Chand could have been eligible for enhanced threshold limit of turnover for registration, i.e.40 lakh as he is exclusively engaged in intra-State supply of goods. However, since Hukum Chand is engaged in supplying footwear from a Special Category State i.e. Nagaland, the threshold limit gets reduced to 10 lakh. Thus, Hukum Chand is liable to get registered under GST as his turnover exceeds 10lakh. Further, he is required to obtain registration in both Himachal Pradesh and Nagaland as he is making taxable supplies from both the States.