In the month of February 2025, Mr. Venkatesh started supply of both goods and services from the states of Rajasthan and Tripura. His statistics for…
CA Intermediate · Taxation · PYQS · September 2025
In the month of February 2025, Mr. Venkatesh started supply of both goods and services from the states of Rajasthan and Tripura. His statistics for the month of February 2025 are as under: S. No. Particulars Rajasthan (₹) Tripura (₹) (i) Intra-State taxable supplies 11,00,000 5,00,000 (ii) Intra-State sale by Mr. Venkatesh as an agent of Ganesh enterprises, a non-taxable person of Rajasthan 1,00,000 - (iii) Intra-State supply of non-taxable goods 2,00,000 Additional Information: (i) In the State of Rajasthan, Intra-State taxable supply includes commission received as an insurance agent from an insurance company worth - 50,000. (ii) In the State of Tripura, Intra-State taxable supplies includes inward supply of service on which tax is payable under reverse charge worth - 1,00,000. (iii) For sale by Mr. Venkatesh in the capacity of agent for Ganesh Enterprises, the invoice was issued in the name of Mr. Venkatesh only. Assume all the above figures are excluding GST and given amount to be considered as value determined as per the GST law. Based on the above-mentioned information, you are required to determine the following along with the relevant provision in brief: (1) Compute the aggregate turnover of Mr. Venkatesh for the purpose of registration under GST law. (2) Decide whether Mr. Venkatesh is liable to be registered under GST or not. Also discuss whether your answer to the (2) above will change or not if in the state of Tripura Mr. Venkatesh is engaged only in intra-State supply of exempt goods and other information will remain same.
Suggested Answer and Working Notes:
Particulars Rajasthan Amount (₹) Tripura Amount (₹) (1) Computation of aggregate turnover of Mr. Venkatesh Intra-State taxable supplies [Includible in aggregate turnover. Further, value of inward supplies on which tax is payable on reverse charge basis are excludible from the aggregate turnover, but outward supplies on which tax is payable under reverse charge are includible (insurance commission)] 11,00,000 4,00,000 [5,00,000 – 1,00,000] Intra-State supply by Mr. Venkatesh as an agent of Ganesh Enterprises in Rajasthan [Since Mr. Venkatesh issues invoice in his own name, the given principal-agent relationship falls within the ambit of the Para 3 of Schedule I of the CGST Act, 2017. All supplies made by an agent on behalf of all his principals are includible in aggregate turnover.] 1,00,000 Intra-State supply of non-taxable goods [Includible, since exempt supplies are includible in aggregate turnover and exempt supply includes non-taxable supply.] 2,00,000 Aggregate Turnover 14,00,000 4,00,000 Aggregate turnover on all India basis 18,00,000 (2) The applicable threshold limit of turnover for registration in the given case will be reduced to 10 lakh since Mr. Venkatesh is engaged in making taxable supplies from Tripura – a Special Category State. Since the turnover of Mr. Venkatesh exceeds 10lakh, he is liable to obtain registration under GST in Rajasthan and Tripura. (3) However, Mr. Venkatesh is liable to obtain registration compulsorily since he is required to pay tax under reverse charge mechanism in Tripura. In case Mr. Venkatesh makes only exempt supplies of goods from the Special Category State Tripura, the applicable threshold limit of turnover for registration will not be reduced to 10 lakh. The applicable threshold limit, in that case, will be 20lakh since Mr. Venkatesh is engaged in making supply of goods as well as services. Since the turnover of Mr. Venkatesh does not exceed 20lakh, he is not liable to obtain registration under GST. However, Mr. Venkatesh is liable to obtain registration compulsorily since he is required to pay tax under reverse charge mechanism in Tripura.
Topics: Paper 3B: Goods and Services Tax
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