Who are not liable for GST Registration – FAQs on Exemptions from GST Registration

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Who are not liable to register under GST? In our previous article, we have clearly explained the meaning of GST and how to get GST number. In a simple way,  if you are supplying goods and services within a state of more than 20 Lakh in a financial year, then you are liable to register for GST. However, the same rule explains the concept of two categories of the person which are not required to register under GST. Let us check at those two categories. There are only two categories of person which are not liable for GST registration ((जीएसटी रजिस्ट्रेशन)) I;e Any person engaged exclusively in the business of supplying goods and/or services that are not liable to tax or are wholly exempt from tax. And an agriculturist, for the purpose of agriculture. Let’s check complete details.

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Who are not liable for GST Registration

(i) Persons not liable for GST registration

  • Person engaged exclusively in supplying goods/services/both not liable to tax are not liable for GST Registration
  • Person engaged exclusively in supplying goods/services/both wholly exempt from tax are not liable for GST Registration
  • Agriculturist to the extent of supply of produce out of cultivation of land are not liable for GST Registration
  • Specified category of persons notified by the Government on GST Council recommendation are not liable for GST Registration

(ii) Specified category of persons notified by the Government exempted from obtaining registration

Exempted Persons from GST Registration

Following category of persons have been notified as being exempted from obtaining registration under GST law:

  • Persons making only reverse charge supplies.
  • Persons making inter-State supplies of taxable services up to Rs. 20,00,000.
  • Casual Taxable Persons making taxable supplies of handicraft goods or persons making inter-State supplies of specified handicraft goods up to Rs. 20,00,000.
  • Job workers making inter-State supply of services to a registered person.
  • Persons making supplies of services through an ECO.

Persons making only reverse charge supplies

Persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under section 9(3) have been exempted from obtaining registration [Notification No. 5/2017 CT dated 19.06.2017].

Persons making inter-State supplies of taxable services up to Rs. 20,00,000

The persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of ` 20 lakh in a financial year have been exempted from obtaining compulsory registration. However, the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ` 10 lakh in case of Special Category States other than Jammu and Kashmir [Notification No. 10/2017 IT dated 13.10.2017].

Casual Taxable Persons making taxable supplies of handicraft goods or persons making inter-State supplies of specified handicraft goods up to Rs. 20,00,000

As we have seen earlier that as per section 24, a CTP or a person making inter-State supplies of goods are liable to be registered compulsorily under GST irrespective of the threshold limit.

However, persons making inter-State supplies of specified handicraft goods have been exempted from obtaining registration provided:

1*. aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of Rs.20 lakh [` 10
lakh in case of Special Category States other than the State of Jammu and Kashmir] in a FY.

2*. such persons have obtained a PAN and have generated an eway bill [Notification No. 8/2017 IT dated 14.09.2017].

Further, CTPs making taxable supplies of specified handicraft goods have also been exempted from obtaining registration provided conditions specified in points 1*. and 2*. above are fulfilled.

Exemption is available to casual taxable persons who are making inter-State taxable supplies of handicraft goods and are availing the benefit of exemption from registration under aforesaid notification [Notification No. 32/2017 CT dated 15.09.2017].

Handicraft goods means the products specified in the respective notifications, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process. Specified handicraft goods have been prescribed for above exemptions.

Job workers making inter-State supply of services to a registered person

Job workers engaged in making inter-State supply of services to a registered person have been exempted from obtaining registration. However, nothing contained in this notification shall apply to a job-worker:

(a) who is liable to be registered under section 22(1) [i.e. aggregate value of his supplies exceeds Rs. 20 lakh (Rs.10 lakh
in case of Special Category States other than Jammu and Kashmir) in a FY] or who opts to take registration voluntarily; or

(b) who is involved in making supply of services in relation to jewellery, goldsmiths’ and silversmiths’ wares and other articles [Notification No. 7/2017 IT dated 14.09.2017].

Persons making supplies of services through an ECO

(other than supplies specified under section 9(5) of the CGST Act) with aggregate turnover up to Rs.20,00,000

Persons making supplies of services, other than supplies specified under section 9(5), through an ECO who is required to collect tax at source under section 52, and having an aggregate turnover, to be computed on all India basis, not exceeding `20 lakh (`10 lakh in case of Special Category States other than Jammu and Kashmir) in a FY, have been exempted from obtaining compulsory registration [Notification No. 65/2017 CT dated 15.11.2017].

Therefore, all service providers, whether supplying intra-State, inter-State or through ECO, will be exempt from obtaining registration, provided their aggregate turnover does not exceed Rs.20 lakh (Rs.10 lakh in special category States except Jammu & Kashmir).

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We are getting so many questions like ” is registration required for person who supplies goods which are not liable for GST ” in our forum. That’s why we clearly explained about persons not liable for GST registration (जीएसटी रजिस्ट्रेशन) in this article. Still, if you have any doubts you can ask in our “Forum“. Our experts and members will try to answer you.

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