While Calculating 20 lacs/40 lacs Limit, we take into account turnover of all branches (and not single branch)

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While Calculating Turnover, we take into account turnover for both taxable and exempt goods
However if a person is dealing with purely exempt goods, then Registration not required

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How to Calculate 20 lacs 40 lacs Limit A Shopkeeper has 2 Branches Delhi Branch Mumbai Branch Turnover 30 lacs Turnover 15 lacs Whether Registration Required? Total Turnover of both branches =30 lacs+15 lacs=45 lacs It is more than 40 lacs So registration required A Shopkeeper deals in Fruits (Exempt Items) A Shopkeeper deals in Fruits and Fruit Jams Turnover 50 lacs Turnover 50 Lacs Whether Registration Required Whether Registration Required No Registration Not Required as Purely dealing with Exempted items Yes For Registration, we take total of Exempt+Taxable items (Exempt Items) (Taxable Items)

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.