Taxation - GST Ch 08: Registration - Test 2: answer key

Question 1 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. M/s Nandini Real Estates Pvt Ltd, a company in Karnataka, crossed the applicable registration threshold on 12 August 2026. It submitted its registration application on 20 September 2026, and the certificate was granted on 30 September 2026. It has two business places in Karnataka: Bengaluru as the principal place and Mysuru as an additional place. It also has an SEZ unit and a domestic unit in the same State. While applying, it opted for Aadhaar authentication. One authorised signatory did not complete authentication, so the proper officer decided to carry out physical verification of the principal place of business before grant. On 10 October 2026, the proper officer issued a notice seeking clarification on the application. The company wants separate registration for each Karnataka place of business and also proposes to voluntarily register a liaison office in Kerala from which no taxable supply is made. The liaison office will only support marketing. The company has no other registrations. No SCN has been issued on the clarification notice so far. It wants to know the effective date, the reply timeline to the notice, the conditions for separate registration within Karnataka, and the effect of voluntary registration for the Kerala liaison office.

What is the effective date of registration for M/s Nandini Real Estates Pvt Ltd?

1. 12 August 2026, the date it became liable to registration.
2. 20 September 2026, the date it submitted the application.
3. 30 September 2026, the date the certificate was granted. (correct answer)
4. 11 September 2026, the last date for applying within 30 days.

Answer: C — 30 September 2026, the date the certificate was granted.

Explanation. The company became liable on 12 August 2026. Thirty days from that date ended on 11 September 2026. The application was filed on 20 September 2026, which is after the 30-day period. Under Rule 10, where the application is submitted after 30 days from becoming liable, the effective date is the date of grant of registration. The certificate was granted on 30 September 2026, so the effective date is 30 September 2026. Option c is correct.

Where it goes wrong. Applying the date of liability or application date when the application was filed beyond 30 days.

Authority. Section 25(1) of the CGST Act, 2017; Rule 10 of the CGST Rules, 2017

Question 2 · 2 marks · Taxation - GST Ch 08: Registration · hard

The proper officer issued a clarification notice on 10 October 2026. By when must the company reply to that notice?

1. Within 15 days from the date of the notice.
2. Within 7 working days from receipt of the notice. (correct answer)
3. Within 30 days from the date of the notice.
4. Within 3 working days from receipt of the notice.

Answer: B — Within 7 working days from receipt of the notice.

Explanation. Rule 9(2) allows the proper officer to issue a notice seeking clarification, information or documents within 7 working days from the date of submission of the application. Where Aadhaar authentication is not completed or physical verification is required, the notice can be issued up to 30 days from the application. The applicant must furnish the reply within 7 working days from receipt of the notice. Hence, option b is correct; 15 days, 30 days and 3 working days are incorrect.

Where it goes wrong. Using the 30-day outer limit for issuing the notice as the reply period.

Authority. Rule 9(2) of the CGST Rules, 2017

Question 3 · 2 marks · Taxation - GST Ch 08: Registration · hard

What condition applies if the company obtains separate registration for its Bengaluru and Mysuru places of business in Karnataka?

1. Separate registration is not allowed within the same State under any circumstance.
2. Separate registration is allowed only if each place has a different PAN.
3. Separate registration is allowed only if the places are in different States.
4. Each separately registered place must pay tax on supplies to the other registered place and issue a tax invoice. (correct answer)

Answer: D — Each separately registered place must pay tax on supplies to the other registered place and issue a tax invoice.

Explanation. Section 25(2) generally grants one registration in a State, but permits separate registration for each place of business subject to conditions. Rule 11 requires that where separate registrations are obtained for places of business in the same State, each such place must pay tax on supply of goods or services to another registered place of the same person and issue a tax invoice or bill of supply. Separate registration does not require a different PAN or different States. Option d is correct.

Where it goes wrong. Assuming separate registration within a State is unrestricted or requires different PAN or States.

Authority. Section 25(2) of the CGST Act, 2017; Rule 11 of the CGST Rules, 2017

Question 4 · 2 marks · Taxation - GST Ch 08: Registration · medium

What is the correct position for the proposed voluntary registration of the Kerala liaison office from which no taxable supply is made?

1. It may obtain voluntary registration under section 25(3); all GST provisions apply, though tax is payable only if taxable supply is made. (correct answer)
2. Voluntary registration is not allowed for a liaison office that makes no taxable supply.
3. Voluntary registration requires aggregate turnover above the applicable threshold.
4. Voluntary registration removes the requirement to file returns.

Answer: A — It may obtain voluntary registration under section 25(3); all GST provisions apply, though tax is payable only if taxable supply is made.

Explanation. Section 25(3) permits a person who is not liable to register under section 22 or section 24 to obtain voluntary registration. Once registered, all provisions applicable to a registered person apply. Tax liability arises only when a taxable supply is made, so a liaison office making no taxable supply may not pay output tax but must comply with registration-related provisions. There is no turnover threshold for voluntary registration, and return filing obligations continue. Option a is correct.

Where it goes wrong. Treating voluntary registration as exempting the person from GST compliance or requiring a threshold.

Authority. Section 25(3) of the CGST Act, 2017

Question 5 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. Mr. Devansh plans a trade exhibition in Goa from 5 to 12 December 2026. He has no fixed place of business in Goa. Expected taxable supplies at the Goa venue are ₹18,00,000, and estimated tax liability is ₹3,24,000. He files a casual taxable person application on 28 November 2026 and deposits the estimated tax. A UK company, Brightline Global Ltd, will provide taxable event management services at the same exhibition. It has no fixed place or residence in India and no PAN. It files a non-resident taxable person application on 1 December 2026 for supplies from 7 December 2026 and submits a self-attested passport with an Indian resident authorised signatory having PAN. It deposits estimated tax of ₹1,00,000. Separately, M/s Aarohi Traders, a registered person, fails to furnish GSTR-3B for a continuous period of six months, July to December 2026. The proper officer cancels its registration by order dated 15 January 2027, with effect from 15 January 2027, after giving an opportunity of hearing. Aarohi Traders applies for revocation of cancellation on 10 April 2027. Mr. Karan, a voluntarily registered person, did not commence business within six months of registration, and the proper officer proposes cancellation. All amounts are exclusive of GST. The facts concern registration procedure, CTP and NRTP requirements, cancellation and revocation.

What advance deposit must Mr. Devansh make with his casual taxable person application for the Goa exhibition?

1. ₹1,62,000, being half of the estimated tax liability.
2. ₹32,400, being ten per cent of the estimated tax liability.
3. ₹3,24,000, being the estimated tax liability for the period. (correct answer)
4. Nil, because a CTP need not make an advance deposit.

Answer: C — ₹3,24,000, being the estimated tax liability for the period.

Explanation. Section 27(2) requires a casual taxable person to make an advance deposit of tax equal to the estimated tax liability for the period for which registration is sought. The estimated liability is ₹3,24,000, so the deposit is ₹3,24,000. The amount is credited to the electronic cash ledger. There is no half, ten per cent or nil deposit option. Option c is correct.

Where it goes wrong. Reducing the advance deposit to a percentage of estimated tax liability.

Authority. Section 27(2) of the CGST Act, 2017

Question 6 · 2 marks · Taxation - GST Ch 08: Registration · hard

What is the validity of the certificate granted to Brightline Global Ltd as a non-resident taxable person?

1. One year from the effective date of registration.
2. The period specified or 90 days from the effective date, whichever is earlier. (correct answer)
3. 180 days from the effective date without any extension.
4. Till the exhibition ends, with no fixed statutory limit.

Answer: B — The period specified or 90 days from the effective date, whichever is earlier.

Explanation. Section 27(1) provides that a certificate issued to a casual taxable person or non-resident taxable person is valid for the period specified in the application or 90 days from the effective date of registration, whichever is earlier. The proper officer may extend it by up to 90 days on sufficient cause. It is not one year, not 180 days automatically, and not open-ended till the exhibition ends. Option b is correct.

Where it goes wrong. Treating 90 days as a minimum rather than the outer limit, or ignoring the specified period.

Authority. Section 27(1) of the CGST Act, 2017

Question 7 · 2 marks · Taxation - GST Ch 08: Registration · hard

What is the correct cancellation position for M/s Aarohi Traders, which failed to furnish GSTR-3B for July to December 2026?

1. Cancellation is not allowed because the default is only for six months.
2. Cancellation requires the default to continue for twelve months.
3. Cancellation is allowed only with effect from the date of the cancellation order.
4. Cancellation is allowed from any date, including a retrospective date, after an opportunity of hearing. (correct answer)

Answer: D — Cancellation is allowed from any date, including a retrospective date, after an opportunity of hearing.

Explanation. Under Rule 21(h), a registered person required to file monthly returns who has not furnished returns for a continuous period of six months is liable to cancellation. Section 29(2) permits the proper officer to cancel registration from any date, including a retrospective date, after giving an opportunity of hearing. Six months of default is sufficient; twelve months is not required. Cancellation is not restricted to the order date. Option d is correct.

Where it goes wrong. Using a twelve-month default period or assuming cancellation can only be prospective.

Authority. Section 29(2) of the CGST Act, 2017; Rule 21(h) of the CGST Rules, 2017

Question 8 · 2 marks · Taxation - GST Ch 08: Registration · medium

Aarohi Traders received the cancellation order on 15 January 2027. What is the last date for applying for revocation under section 30?

1. 15 April 2027, being 90 days from the date of service of the order. (correct answer)
2. 15 March 2027, being 60 days from the date of service of the order.
3. 15 July 2027, being 180 days from the date of service of the order.
4. 15 January 2028, being one year from the date of service of the order.

Answer: A — 15 April 2027, being 90 days from the date of service of the order.

Explanation. Rule 23 allows an application for revocation within 90 days from the date of service of the cancellation order. Counting from 15 January 2027: January 16 days remaining, February 28 days, March 31 days, and April 15 days gives 90 days. The last date is 15 April 2027. The period can be extended by up to 180 days by the Commissioner or authorised officer, but the ordinary last date is 15 April 2027. Option a is correct.

Where it goes wrong. Ignoring the 90-day period or treating the 180-day extension as automatic.

Authority. Section 30(1) of the CGST Act, 2017; Rule 23 of the CGST Rules, 2017

Question 9 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Sunrise Traders became liable to registration on 1 November 2026. It has not applied yet. By what date must it submit the registration application under section 25(1)?

1. 15 November 2026
2. 30 November 2026
3. 2 December 2026
4. 1 December 2026 (correct answer)

Answer: D — 1 December 2026

Explanation. Section 25(1) requires an application within 30 days from the date on which the person becomes liable to registration. The liability date is 1 November 2026. Counting 30 days from that date ends on 1 December 2026, because November has 30 days. The application must be submitted by 1 December 2026. Options a, b and c are earlier or later than the statutory last date. Option d is correct.

Where it goes wrong. Using 30 November as the last date by counting only the days in November.

Authority. Section 25(1) of the CGST Act, 2017

Question 10 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Sunrise Traders became liable on 1 November 2026. It applied on 15 December 2026 and the certificate was granted on 25 December 2026. What is the effective date of registration?

1. 1 November 2026
2. 15 December 2026
3. 25 December 2026 (correct answer)
4. 1 December 2026

Answer: C — 25 December 2026

Explanation. The 30-day period from 1 November 2026 ended on 1 December 2026. The application was filed on 15 December 2026, which is after that period. Under Rule 10, where the application is submitted after 30 days from becoming liable, the effective date of registration is the date of grant of registration. The certificate was granted on 25 December 2026. Hence, the effective date is 25 December 2026, not the liability date or application date. Option c is correct.

Where it goes wrong. Applying the date of liability when the application was filed late.

Authority. Rule 10 of the CGST Rules, 2017

Question 11 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An applicant does not opt for Aadhaar authentication. The proper officer does not issue any notice or take action on the application. When does registration become deemed approved?

1. After 7 working days from submission of the application.
2. After 30 days from submission of the application. (correct answer)
3. After 90 days from submission of the application.
4. After 15 days from submission of the application.

Answer: B — After 30 days from submission of the application.

Explanation. Where the applicant does not opt for Aadhaar authentication, the application is not approved within 7 working days. It is marked for physical verification and can be approved after 30 days if the proper officer takes no action. The proper officer may issue a notice within 30 days. If no notice or action is taken, registration is deemed approved after 30 days from submission. Option b is correct; 7 working days applies where Aadhaar authentication is successful.

Where it goes wrong. Applying the 7-working-day deemed approval timeline to a non-Aadhaar case.

Authority. Rule 9(5) of the CGST Rules, 2017; Section 25(10) of the CGST Act, 2017

Question 12 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

An applicant successfully completes Aadhaar authentication, and the proper officer does not issue any show cause notice. When is registration deemed approved?

1. After 7 working days from submission of the application. (correct answer)
2. After 15 days from submission of the application.
3. After 30 days from submission of the application.
4. After 3 working days from submission of the application.

Answer: A — After 7 working days from submission of the application.

Explanation. Where Aadhaar authentication is successful and no show cause notice is issued, registration is deemed approved after 7 working days from submission of the application. Physical verification is ordinarily not required in such cases. The 30-day timeline applies where Aadhaar is not opted for, authentication fails, or site verification is required. Rule 9A can grant approval within 3 working days for low-risk applicants, but the deemed approval period is 7 working days. Option a is correct.

Where it goes wrong. Confusing the 3-working-day fast-track approval with the ordinary 7-working-day deemed approval.

Authority. Rule 9(5) of the CGST Rules, 2017; Rule 9A of the CGST Rules, 2017

Question 13 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registered person has three places of business in one State and wants separate registration for each place. Which statement is correct?

1. Separate registration is not permitted within one State.
2. Separate registration requires each place to have a different PAN.
3. Separate registration is permitted subject to conditions, including tax invoice on supplies between separately registered places. (correct answer)
4. Separate registration is permitted only if one place is in an SEZ.

Answer: C — Separate registration is permitted subject to conditions, including tax invoice on supplies between separately registered places.

Explanation. Section 25(2) generally grants one registration in a State, but its proviso allows separate registration for each place of business subject to prescribed conditions. Rule 11 requires all separately registered places to pay tax on supplies to another registered place of the same person and issue a tax invoice or bill of supply. Separate registration does not require different PAN, and an SEZ unit is not the only case. Option c is correct.

Where it goes wrong. Treating the single-registration rule as absolute or requiring different PAN.

Authority. Section 25(2) of the CGST Act, 2017; Rule 11 of the CGST Rules, 2017

Question 14 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

M/s Suvarna Industries has a manufacturing unit in an SEZ and another unit outside the SEZ in the same State. What is the registration requirement for the SEZ unit?

1. The SEZ unit can be included as an additional place of business in the domestic registration.
2. The SEZ unit does not require any registration because SEZ supplies are exempt.
3. The SEZ unit can use the domestic unit’s GSTIN without separate registration.
4. The SEZ unit must obtain a separate registration distinct from the unit outside the SEZ in the same State. (correct answer)

Answer: D — The SEZ unit must obtain a separate registration distinct from the unit outside the SEZ in the same State.

Explanation. The second proviso to section 25(1) requires a person having a unit in an SEZ, or an SEZ developer, to apply for separate registration as distinct from a place of business located outside the SEZ in the same State. The SEZ unit cannot be merged into the domestic registration or use the domestic GSTIN. SEZ supplies being exempt does not remove the separate registration requirement. Option d is correct.

Where it goes wrong. Treating the SEZ unit as an additional place of business of the domestic unit.

Authority. Second proviso to section 25(1) of the CGST Act, 2017

Question 15 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

Mr. Karan obtained voluntary registration but did not commence business within six months. What action can the proper officer take?

1. Cancel the registration, because a voluntarily registered person must commence business within six months. (correct answer)
2. Cancel the registration only after twelve months.
3. Suspend the registration but not cancel it.
4. Take no action, because voluntary registration is permanent.

Answer: A — Cancel the registration, because a voluntarily registered person must commence business within six months.

Explanation. Section 29(2)(d) allows the proper officer to cancel registration where a person who obtained voluntary registration under section 25(3) has not commenced business within six months from the date of registration. The period is six months, not twelve months. Suspension may occur during cancellation proceedings, but cancellation is the substantive action. Voluntary registration is not permanent if this condition is breached. Option a is correct.

Where it goes wrong. Extending the six-month period to twelve months or treating voluntary registration as irrevocable.

Authority. Section 29(2)(d) of the CGST Act, 2017

Question 16 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

For a registered person required to file monthly returns, what continuous default period makes the registration liable to cancellation under Rule 21?

1. Continuous default for 3 months.
2. Continuous default for 6 months. (correct answer)
3. Continuous default for 2 tax periods.
4. Continuous default for 12 months.

Answer: B — Continuous default for 6 months.

Explanation. Rule 21(h) applies to a person required to file returns under section 39(1) for each month or part thereof. If such a monthly return filer has not furnished returns for a continuous period of six months, cancellation is attracted. The two-tax-period default applies to quarterly return filers under the QRMP scheme. Three months and twelve months are not the prescribed periods for monthly filers. Option b is correct.

Where it goes wrong. Applying the two-tax-period quarterly threshold to a monthly return filer.

Authority. Rule 21(h) of the CGST Rules, 2017; Section 29(2)(c) of the CGST Act, 2017

Question 17 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

During pendency of cancellation proceedings, the proper officer suspends a registered person’s registration. What is the correct consequence of suspension?

1. The person can continue to issue tax invoices and charge tax.
2. The person must file returns for the suspension period immediately.
3. The suspension automatically cancels the registration.
4. The person cannot make taxable supplies and is not required to furnish returns under section 39. (correct answer)

Answer: D — The person cannot make taxable supplies and is not required to furnish returns under section 39.

Explanation. Rule 21A provides that during suspension, the registered person cannot make taxable supplies, meaning no tax invoice can be issued and no tax can be charged. The person is also not required to furnish returns under section 39 for the suspension period. Suspension does not automatically cancel registration; cancellation proceedings continue separately. Option d is correct.

Where it goes wrong. Treating suspension as cancellation or assuming return filing continues during suspension.

Authority. Rule 21A of the CGST Rules, 2017; Section 29 of the CGST Act, 2017

Question 18 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

What is the time limit for applying for revocation of a suo-motu cancellation under section 30?

1. 30 days from service of the cancellation order, extendable by 90 days.
2. 60 days from service of the cancellation order, extendable by 180 days.
3. 90 days from service of the cancellation order, extendable by up to 180 days. (correct answer)
4. 90 days from service of the cancellation order, extendable by up to 90 days.

Answer: C — 90 days from service of the cancellation order, extendable by up to 180 days.

Explanation. Rule 23 allows an application for revocation within 90 days from the date of service of the cancellation order. The Commissioner or an authorised officer not below the rank of Additional Commissioner or Joint Commissioner may extend this period by up to 180 days on sufficient cause. The base period is 90 days, not 30 or 60 days, and the extension is up to 180 days, not 90 days. Option c is correct.

Where it goes wrong. Using the 30-day cancellation order period or limiting the extension to 90 days.

Authority. Section 30(1) of the CGST Act, 2017; Rule 23 of the CGST Rules, 2017

Question 19 · 2 marks · Taxation - GST Ch 08: Registration · hard

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

A registration was cancelled because the person failed to furnish returns. Before applying for revocation, what must the person do?

1. Only pay the cancellation fee.
2. File all pending returns and pay tax, interest, penalty and late fee due. (correct answer)
3. Obtain a fresh PAN and apply for new registration.
4. Wait for twelve months before applying.

Answer: B — File all pending returns and pay tax, interest, penalty and late fee due.

Explanation. Where registration is cancelled for failure to furnish returns, Rule 23 requires the person to make good the defaults before applying for revocation. The person must file all pending returns and pay the tax due along with interest, penalty and late fee in respect of those returns. A fresh PAN or a twelve-month wait is not required. Payment of only a cancellation fee is insufficient. Option b is correct.

Where it goes wrong. Applying for revocation without first filing pending returns and paying associated dues.

Authority. Rule 23 of the CGST Rules, 2017; Section 30 of the CGST Act, 2017

Question 20 · 2 marks · Taxation - GST Ch 08: Registration · medium

Scenario. During Tax Year 2026-27, a registered taxpayer is evaluating statutory compliance, computation of taxable income, and eligible tax deductions in accordance with the provisions of the Income-tax Act, 2025 and applicable rules for the May 2027 examination.

After the registered person replies to a show cause notice for cancellation, within what period must the proper officer issue the cancellation order?

1. Within 30 days from the date of reply to the show cause notice. (correct answer)
2. Within 7 days from the date of reply to the show cause notice.
3. Within 15 days from the date of reply to the show cause notice.
4. Within 60 days from the date of reply to the show cause notice.

Answer: A — Within 30 days from the date of reply to the show cause notice.

Explanation. Where the proper officer proposes to cancel registration on his own motion, a show cause notice must be issued and the person must be given an opportunity of hearing. Rule 22 requires the reply to the notice within 7 days of service. If the registration is liable to be cancelled, the proper officer must issue the cancellation order within 30 days from the date of reply to the show cause notice. Option a is correct.

Where it goes wrong. Using the 7-day reply period as the period for passing the cancellation order.

Authority. Rule 22 of the CGST Rules, 2017; Section 29(2) of the CGST Act, 2017