All India Bar Examination (AIBE) 17-XVII Previous Year Question Papers with Answers

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37.

Mr. Manjot is a trader supplying goods from his M/s Singh Traders. The office of the firm is located in Delhi whereas its god owns are located in the State of Uttar Pradesh, Punjab and Jammu & Kashmir (J&K) respectively.

M/s Singh Traders made following intra-state supplies from different States during the current financial year :

(i) Delhi-Taxable Supplies: Rs. 21, 00,000
(ii) Punjab-Exempted Supplies: Rs. 6, 00,000
(iii) Uttar Pradesh- Taxable and Exempted Supplies Rs. 3, 00,000 each respectively,
(iv) J&K-Taxable and Exempted Supplies: Rs. 8,00,000 and Rs. 3,00,000 respectively.

Ascertain the States in which Mr. Manjot is required to take registration under GST.
A: Delhi, Punjab, Uttar Pradesh and J&K
B: Delhi, Uttar Pradesh and J&K
C: Delhi and Uttar Pradesh
D: Delhi

The answer is: B

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Explanation

The correct option is B: Delhi, Uttar Pradesh and J&K.

Mr. Manjot is required to take registration under GST in the states where he makes taxable supplies of goods exceeding the threshold limit of Rs. 40 lakh for normal category states and Rs. 20 lakh for special category states.

Delhi, Uttar Pradesh and J&K are normal category states that have opted for the new limit of Rs. 40 lakh. Punjab is a normal category state that has chosen the status quo of Rs. 20 lakh.

However, Mr. Manjot only makes exempted supplies from Punjab, which are not liable for GST registration. Therefore, he does not need to register in Punjab. Similarly, he does not need to register in the state where his godowns are located, unless he makes taxable supplies from there. Hence, he only needs to register in Delhi, Uttar Pradesh and J&K, where his taxable supplies exceed the respective threshold limits.