Bansilal Private Limited, registered under GST in the State of Maharashtra, is engaged in manufacturing of goods which are used for further…

CA Final · Indirect Tax Laws · MTP · May 2024
Bansilal Private Limited, registered under GST in the State of Maharashtra, is engaged in manufacturing of goods which are used for further production in automobile industry. The company sends some semi-finished inputs to job workers, M/s Yash Enterprises and M/s Jash Enterprises, for necessary processing. The processed goods are sent back by the job workers to the company where they are used for manufacturing the finished products. M/s Yash Enterprises has its place of business in Maharashtra. M/s Jash Enterprises has its place of business in the State of Madhya Pradesh viz. 35 km away from the place of business of Bansilal Private Limited. The company imports some raw material and stores the same for few months in the warehouse operated by M/s Sudhankar Enterprises in the State of Tamil Nadu. Later on, it is transported to the company's factory in Maharashtra. M/s Sudhankar Enterprises is not registered under GST. The aggregate turnover of M/s Sudhankar Enterprises for the current financial year is 18,25,000. The company maintains all the records, documents and books of accounts at its place of business in Maharashtra. Following are the relevant details of Bansilal Private Limited for the month of August. Particulars Amount (₹) Total turnover 36,00,000 Total inputs received during the month 21,12,000 Total input services received during the month 8,99,000 Goods sent to M/s Yash Enterprises during the month for job work purpose by motor vehicle 75,000 Goods sent to M/s Jash Enterprises during the month for job work purpose by motor vehicle 46,800 Note: All aforementioned amounts are exclusive of GST, wherever applicable. Bansilal Private Limited procures the service of M/s Jaggi Enterprises, a goods transport agency, having its places of business in Maharashtra, Gujarat and Kerela. M/s Jaggi Enterprises is registered in all these States with same PAN. Bansilal Private Limited transports its finished goods to different customers located within Maharashtra through M/s Jaggi Enterprises. M/s Jaggi Enterprises prepares a consignment note containing the details of consignor and consignee, value of consignment, vehicle number, details of party paying the taxes etc. Based on the facts of the case scenario given above, choose the most appropriate answer to Q. Nos. 9 to 12 below:
(A) Yes, being a warehouse operator, M/s Sudhankar Enterprises has to compulsorily take GST registration to conduct the business irrespective of the quantum of aggregate turnover.
(B) No, M/s Sudhankar Enterprises is not required to take registration under GST as its aggregate turnover is below the threshold limit for registration. However, it is required to obtain a unique enrolment number under GST.
(C) M/s Sudhankar Enterprises is neither required to obtain registration nor unique enrolment number under GST to conduct business.
(D) Yes, M/s Sudhankar Enterprises is required to take registration compulsorily under GST. Further, it is also required to obtain a unique enrolment number under GST as its aggregate turnover is more than 10 lakh.

Suggested Answer and Working Notes:

Correct Answer: Option (B)

No, M/s Sudhankar Enterprises is not required to take registration under GST as its aggregate turnover is below the threshold limit for registration. However, it is required to obtain a unique enrolment number under GST.

Topics: Input Tax Credit, Place of Supply, Registration

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