Determine whether liability to obtain registration arises or not under GST law in the following independent cases:- (i) Mr. G from Delhi is dealing…

CA Intermediate · Taxation · RTP · January 2026
Determine whether liability to obtain registration arises or not under GST law in the following independent cases:- (i) Mr. G from Delhi is dealing in the purchase and sale of securities in his own account from secondary market. He disclosed the transactions of purchase and sale of securities in Trading Account and treated the same as business income. Turnover from April to September is 75 lakh. Is he liable for registration? (ii) KLJ Foundation from Jaipur, Rajasthan, a charitable trust registered under Section 12AB of the Income Tax Act, 1961 is engaged in the supply of various services by charitable trust. KLJ Foundation receipts for the preceding financial year was 30 lakh. Whether KLJ Foundation is required to take registration?

Suggested Answer and Working Notes:

(i) Any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under CGST Act/IGST Act shall not be liable to registration. Shares is excluded from the definition of goods as well as services under the GST law. Supply of anything other than goods or services like money, securities etc. does not attract GST. Thus, in the given case, Mr. G is not liable to obtain registration for sales of shares since shares are neither goods nor services under GST law. (ii) A charitable trust registered under section 12AB of the Income Tax Act, 1961 and exclusively engaged in supply of services by way of charitable activities are exempt from GST, so here KLJ Foundation from Jaipur, Rajasthan is not liable for registration as it is exclusively engaged in supplying services exempt from tax.

Topics: Paper 3A: Income Tax Laws, Paper 3B: Goods and Services Tax

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