Today, let’s recapitulate what the GST law says in a nutshell, about persons not liable for registration under GST.
Section 23 of the CGST Act 2017, speaks about Persons Not liable for registration under GST. The list includes the following persons,
| S.No | Particulars | Relevant Section / Notification |
| 1. | Persons engaged exclusively in supplying goods and /or services not liable to tax or wholly exempt from tax under CGST Act or the IGST Act. | (Sec 23(1)(a))
Exempted Goods Exempted Services |
| 2.
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Agriculturists, limited to supply of produce put of cultivation of land | (Sec 23(1)(b))
Definition of Agriculturalist Section 2(7) of the CGST Act, 2017 An individual or a Hindu Undivided Family who undertakes cultivation of land, (a) by own labour, or (b) by the labour of family, or by servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family |
| 3. | Persons making supplies, which are taxable only under Reverse Charge Mechanism | Notification No. 5/2017 -CT dated 19-6-2017
In case the person is liable under reverse charge, he needs to take GST registration even if engaged in exempted supplies Definition of RCM, Section 2(98) of the CGST Act, 2017 The liability to pay tax by the recipient of supply of goods or services or both instead of the supplier of such goods or services or both under sub-section (3) or sub-section (4) of section 9 of CGST Act, 2017. |
| 4. | Person being a Job worker, making interstate supplies up ₹20 Lakhs** | Notification No. 7/2017-IT dated 14-9-2017
Not available for Jeweller, Goldsmiths’ , Silversmiths’ wares, etc Definition of Job Work; Sec 2 (68) of the CGST Act, 2017 Any treatment or process undertaken by a person on goods belonging to another registered person. |
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5.
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Persons making interstate supplies of taxable services upto ₹20 Lakhs** | Notification No. 10/2017-IT dated 13-10-2017 |
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6.
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Persons making interstate supplies of taxable goods upto ₹40 Lakhs** | Notification No. 10/2019-CT dated 07.03.2019
A person dealing only in exempted products is not required to be registered under GST, if he is not liable under reverse charge. However, if the person is dealing with both taxable & exempted goods, then aggregate turnover shall be computed as per Section 2(6) of CGST Act, 2017 and section 22 of registration shall apply accordingly |
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7.
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Persons making interstate taxable supplies of notified handicraft goods upto ₹20 Lakhs** | Notification No. 3/2018-IT dated 22-10-2018 |
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8.
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Persons making supplies of services through ECO with aggregate Turnover of ₹20 Lakhs**
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Notification No. 65/2017-CT dated 15-11-2017
Definition of Electronic commerce operator ; Section 2(45) of the CGST Act, 2017 Any person who owns, operates or manages digital or electronic facility or platform for electronic commerce. Electronic commerce means the supply of goods or services or both, including digital products over digital or electronic network; Sec 2(44) |
Note: ** ₹10 Lakhs in case of special category States of Mizoram, Tripura, Manipur and Nagaland
Author Bio
Is GST applicable for an auction of goods less than one lakh from any kerala government institution, if its turn over is less than 20 lakhs?
Wel,, this issue was addressed Vide notification No. 36/2017-Central Tax (Rate) dated 13.10.2017, Which said that Intra-State & Inter-State supplies of used vehicles, seized and confiscated goods, old and used goods, waste and scrap by the Central Government, State Government, Union territory or a local authority to any registered person, would be subject to GST on reverse charge basis, i.e., Tax payable by the recipient.
And, if recipient of such goods are registered persons, then GST registration is not mandatory for government department.
However, there were doubts about incase aforementioned supplies made to unregistered persons. To bring clarity, circular no. 76/50/2018 dated 31.12.2018 was issued which says that in such a case
the Central Government, State Government, Union territory or the local authority shall be liable to get registered and pay GST on intra-State and inter-State supply of such used vehicles, seized and confiscated goods, old and used goods etc made by them to an unregistered person. The registration shall be subject to the provisions of sections 22 & 24 of the CGST Act.
Therefore Sir, if the department in your question has done Inter State supplies to unregistered persons, then despite then registration is required U/s 24 of CGST Act,2017.
Refer:
https://cbic-gst.gov.in/pdf/central-tax-rate/notfctn-36-CGST-rate-english.pdf
https://www.cbic.gov.in/resources//htdocs-cbec/gst/Circular-No-76.pdf