Quick Problems on Registration

General Cases

Q1. ABC Traders, located in Maharashtra, has an annual aggregate turnover of ₹18 lakh. Is GST registration mandatory for them?

Answer: No, GST registration is not mandatory.

Justification: Since the turnover is below the threshold limit of ₹40 lakh for goods in Maharashtra, they are not required to register under GST unless they opt for voluntary registration. 

Q2. XYZ Electronics, based in Karnataka, has an annual turnover of ₹45 lakh. Should they register for GST, and why?

Answer: Yes, GST registration is mandatory.

Justification: The turnover exceeds the threshold limit of ₹40 lakh for goods in Karnataka, making registration mandatory. 

Q3. Green Agro Farms, operating in Punjab, is engaged in the supply of agricultural produce with a turnover of ₹80 lakh. Do they need GST registration?

Answer: No, GST registration is not required.

Justification: Agricultural produce is exempt from GST. Hence, despite the high turnover, they do not need to register unless they deal in taxable items. 

Q4. Quick Delivery Services, a logistics company in Tamil Nadu, provides services across India and has a turnover of ₹12 lakh. Should they register under GST?

Answer: Yes, GST registration is required.

Justification: As the company is having operations across the country (inter-state), they are liable for registration.

Q5. MNO Handicrafts, a handicraft exporter from Rajasthan, has an annual turnover of ₹10 lakh. Are they required to register under GST?

Answer: Yes, GST registration is mandatory.

Justification: Handicraft businesses involved in exports are required to register under GST for interstate (export) supply, irrespective of turnover. 

Interstate & E-Commerce Transactions

Q6. Bright Garments Pvt. Ltd., located in Delhi, supplies goods to customers in multiple states and has a turnover of ₹15 lakh. Is GST registration mandatory for them?

Answer: Yes, GST registration is mandatory.

Justification: Any business involved in interstate supply of goods must register for GST, regardless of turnover. 

Q7. SuperTech Solutions, based in Gujarat, sells software services online to customers across India with a turnover of ₹8 lakh. Should they register for GST?

Answer: Yes, GST registration is required.

Justification: As the company is having operations across the country (inter-state), they are liable for registration.

Q8. Food Express, a restaurant in West Bengal, lists its services on Zomato and Swiggy, earning ₹12 lakh annually. Is GST registration required?

Answer: Yes, GST registration is mandatory.

Justification: Businesses selling through e-commerce platforms (like Zomato/Swiggy) must register for GST, irrespective of turnover. 

Q9. JK Auto Parts, a business from Uttar Pradesh, sells spare parts online through Amazon and Flipkart with a turnover of ₹9 lakh. Do they need GST registration?

Answer: Yes, GST registration is required.

Justification: Any business selling through an e-commerce operator (like Amazon/Flipkart) must register under GST, even if turnover is below the threshold. 

Q10. Speed Courier Services, a logistics provider based in Haryana, delivers goods interstate and has a turnover of ₹5 lakh. Is GST registration compulsory?

Answer: Yes, GST registration is required.

Justification: Logistics services are subject to GST and interstate suppliers must register even if their turnover is below ₹20 lakh. 

Composition Scheme & Exemption Scenarios

Q11. FreshMart Grocery, a retail shop in Kerala, has a turnover of ₹1.2 crore and wants to opt for the Composition Scheme. Can they do so?

Answer: Yes, they can opt for the Composition Scheme.

Justification: The Composition Scheme is available for traders and manufacturers with turnover up to ₹1.5 crore, making them eligible. 

Q12. Natural Ayurveda Ltd., a business from Madhya Pradesh, manufactures Ayurvedic medicines and has a turnover of ₹1.8 crore. Can they opt for the Composition Scheme?

Answer: No, they cannot opt for the Composition Scheme.

Justification: The turnover exceeds the ₹1.5 crore limit for the Composition Scheme, so they must register under the regular GST scheme. 

Q13. Tech Solutions LLP, a software consultancy firm in Chennai, has an annual turnover of ₹2.5 crore. Can they avail of the Composition Scheme under GST?
Answer: No, they cannot opt for the Composition Scheme.

Justification: Service providers (other than restaurant businesses) are not eligible for the Composition Scheme unless their turnover is below ₹50 lakh under the special scheme. 

Q14. Sukh Sagar Dhaba, a small restaurant in Goa, has a turnover of ₹50 lakh. Can they opt for the Composition Scheme?

Answer: Yes, they can opt for the Composition Scheme.

Justification: Restaurants can opt for the Composition Scheme if turnover is up to ₹1.5 crore, so they are eligible. 

Q15. Bharat Textiles, a textile manufacturer in Odisha, has an annual turnover of ₹1.4 crore. Can they register under the Composition Scheme?

Answer: Yes, they can opt for the Composition Scheme.

Justification: Manufacturers with turnover up to ₹1.5 crore can opt for the Composition Scheme. 

Special Categories & Unique Cases

Q16. Himalayan Handlooms, a business based in Sikkim, sells handmade woolen products and has a turnover of ₹22 lakh. Is GST registration required?

Answer: Yes, GST registration is required.

Justification: Sikkim is a Special Category State with a threshold for GST registration being ₹20 lakh. Since their turnover is above this, registration is mandatory. 

Q17. Saara Powers, a business based in Nagaland, sells energy products and has a turnover of ₹11 lakh. Is GST registration required?

Answer: No, GST registration is not required.

Justification: Nagaland is a Special Category State with a threshold for GST registration being ₹10 lakh. Since their turnover is below this, registration is not mandatory. 

Q18. North East Organics, based in Assam, deals with organic farming products and has a turnover of ₹6 lakh. Should they register under GST?

Answer: No, GST registration is not required.

Justification: Agricultural produce is exempt from GST, and the turnover is below the threshold of ₹10 lakh for Assam. 

Q19. Dream Events Pvt. Ltd., an event management company in Mumbai, organizes corporate events across India and has a turnover of ₹22 lakh. Do they need GST registration?

Answer: Yes, GST registration is required.

Justification: Service providers must register if turnover exceeds ₹20 lakh, and since event management is a service, they must register. 

Q20. Sharma Construction Co., a builder in Bihar, has a turnover of ₹70 lakh from real estate projects. Is GST registration mandatory?

Answer: Yes, GST registration is required.

Justification: Construction services are subject to GST, and since turnover exceeds ₹20 lakh, registration is mandatory. 

Q21. Innovate Pvt. Ltd., a startup in Telangana, offers consultancy services and has a turnover of ₹25 lakh. Should they register under GST?

Answer: Yes, GST registration is required.

Justification: Service providers must register under GST if their turnover exceeds ₹20 lakh. Since they are a consultancy firm, they must register.