three units situated in Bangalore, Delhi and Pune. The total sale from all these
units of taxable supply is Rs. 54 lakh and export of goods Rs. 50 lakh during
the financial year 2017-18. However
the value of individual supply from each said unit was:
Bangalore unit Rs.19 lakh and
export of goods of Rs. 20 lakh, Delhi
unit Rs. 18 lakh and export of goods Rs. 14 lakh and Pune unit Rs. 17 lakh and
export of Rs. 16 lakh.
(a) Discuss whether all
units of M/s PQR required registration under GST.
(b) Bangalore branch
transfer of goods of Rs. 4 lakh to Delhi branch without any consideration.
Whether such transfer covered under the purview of supply.
Every supplier shall be
registered under GST in the State or Union Territory, where he makes taxable
supply of goods/services or both, if his aggregate turnover exceeds ten lakhs in
special category States and in other States exceeds 20 lakhs rupees.
turnover” means the aggregate value of all taxable supplies (excluding the
value of inward supplies on which tax is payable by a person on reverse charge
basis), exempt supplies, exports of goods or services or both and inter-State
supplies of persons having the same Permanent
Account Number, to be computed on all India basis but excludes central tax,
State tax, Union territory tax, integrated tax and cess.
the above example aggregate turnover is turnover of M/s PQR because all unit of
M/s PQR are against same PAN. In accordance with above provisions aggregate
turnover is = Rs. 54 lakh +Rs. 50 lakh = Rs. 104 lakh. Individual turnover of
each unit is not relevant for the purpose of registration.
As per Section 25(5) of CGST/SGST
Act, where an establishment of a person who has obtained or is required to
obtain registration in a State, then any of his other establishments in another
State shall be treated as establishments of distinct persons for the purposes of
view of above provision, branches in Bangalore, Delhi and Pune are distinct
persons for the purpose of this Act.
Schedule I specifies
Supply of goods or services between related
persons, or distinct persons as specified in section 25 in course or for
furtherance of business are deemed as supply even made without consideration.
transfer of goods from Bangalore branch to Delhi branch chargeable to GST even
made without consideration.