Question

Roshan is a petite trader who sells products near his locality. His annual aggregate turnover is about ₹7 lakh. Sudha is also a trader. Her annual aggregate turnover is about ₹65 lakh. Sudha and Roshan are unaware of the GST norms. Which of the following would you advise?

• A. GST registration is mandatory for both Roshan and Sudha.
• B. GST registration is not mandatory for Roshan and Sudha.
• C. GST registration is not mandatory for Roshan, but it is mandatory for Sudha.
• D. GST registration is mandatory for Roshan, but it is not mandatory for Sudha.

Answer 1

The correct option is C GST registration is not mandatory for Roshan, but it is mandatory for Sudha.

Not every trader has to pay taxes as per Goods and Services Tax (GST) norms. There is a set turnover threshold. Only the businesses whose aggregate turnover in a financial year exceeds ₹20 lakh have to mandatorily register under GST. Once such a business is registered under GST, it receives a unique registration number known as the Goods and Services Tax Identification Number (GSTIN).