Answer

1. F

   Facts

   A supplier of goods with turnover below Rs 40 lakh in most States, or Rs 20 lakh for services, need not register at all, unless a compulsory registration rule applies. Composition is an option only for registered persons.

2. P

   Provisions and law

   • Sec 22(1), CGST Act 2017Registration is required once aggregate turnover crosses the threshold
   • Sec 24, CGST Act 2017Some persons must register regardless of turnover, such as inter-State suppliers and e-commerce sellers in some cases
   • Sec 10(1), CGST Act 2017Eligible registered persons with aggregate turnover up to Rs 1.5 crore in the preceding year may opt to pay tax at composition rates
3. A

   Analysis

   Example: a kirana in Indore with Rs 30 lakh sales, all local, need not register. If a wholesaler asks for a GSTIN, or sales head towards Rs 40 lakh, register and choose composition at 1 percent in REG-01. Some special category States have lower thresholds, so check your State.

4. C

   Conclusion

   1. 1Check your yearly turnover and State threshold
   2. 2Check whether any compulsory registration rule applies
   3. 3If not required, stay unregistered and keep records
   4. 4If you register, consider choosing composition in REG-01

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.