Question

Can a person carrying an transport agency under proprietorship without registration under GST even his total receipts from all sources are below Rs. twenty Lakh.

Answer

Section 22 of CGST Act requires registration of a person when his aggregate turnover in a financial year exceeds Rs. 20 lakhs.

The aggregate turnover is defined in Section 2(6) as follows:

'aggregate 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;
Since the total trunover is less than Rs. 20 Lakhs, there is no need of Registration


If the aggregate turnover exceeds Rs. 20 lakhs and the transport agency is exclusively engaged in supply of goods or services or both covered under reverse charge, then there is no need of registration.
The same is exempted under Notification No. 5/2017 ' Central Tax. (Reply dt. 03.07.2018)