Section 23 of the Central Goods and Service Tax Act, 2017 deals with the provisions of persons who are not liable for GST registration. Section 23 (1) states that persons who are engaged in supplying goods or services or both that are not liable to be tax or persons who are engaged in supplying of goods or services or both that are wholly exempted from tax, then, such persons are not required to obtain GST registration.

Further, section 23 (2) empowers the government to notify a specific category of persons that are exempted from obtaining GST registration.

List Of Persons Exempted From Obtaining GST Registration

Following categories of person are exempted from obtaining Goods and Service Tax (GST) registration –

1. The person engaged exclusively in providing business of supplying goods or services or both that are not liable to tax or are wholly exempted from tax under Central Goods and Service Tax Act, 2017 or under Integrated Goods and Services Tax Act, 2017.

2. An agriculturist. However, the exemption is only to the extent of supply of produce out of cultivation of land.

3. Individual advocates, including senior advocates.

4. Individual sponsorship service providers, including players.

5. The person engaged in making inter-state supplies of taxable services and having an aggregate turnover of less than INR 20 Lakhs, INR 10 Lakhs in case of special category states, in a financial year (as per notification no. 10/2017 – Integrated tax dated 13th October 2017).

6. The person engaged in the supply of services and having an aggregate turnover of less than INR 20 Lakhs, INR 10 Lakhs in case of special category states, in a financial year (as per notification no. 65/2017 – Central Tax dated 15th November 2017).

However above exemption is not available to the person who is engaged in supplies, specified under sub-section (5) of section 9 of the Act, through an e-commerce operator who is required to collect tax at source (TCS) under section 52 of the Act.

7. The person engaged in supplying taxable goods or services or both and the total tax on such supplies is required to be paid by the recipient of goods or services or both under reverse charge mechanism (as per notification no. 5/2017 – Central Tax dated 19th June 2017 effective from 22nd June 2017).

Also Read- Persons Liable to obtain GST Registration and Compulsory GST Registration

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Company: Taxguru / Sandeep Kanoi & Associates
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9 Comments

  1. Subhashis Maikap says:

    Our organisation is registered under Societies registration act. Our organisation is also registered u/s 12AA of Income Tax Act. Is it mandatory get registration under GST?

  2. raghava says:

    Is every service provider providing inter-state service having turnover below 20 Lakhs in a financial year is exempted from Registration under Notification No.10/2017

  3. dsouza sadh says:

    i have to know that i am a trader and which annual turnover below 20 lac as per GST rules there is no required for GST registration but how types we will deliver our goods by transport to other states when we did not register GST registration.Transporter dose not accept goods without GST registration bill.
    is there any declarition letter submit with invoice to transporter that there is not applicable GST registration because they are below 20 Lacs turnover traders

  4. Krishan Kumar Nagpal says:

    A Haryana Govt. Deptt. Who is not terms of sale and the deptt. purchase the items from open market and for official paid the GST to the firms from the deptt. purcgase the official items. Has the Govt. deptt. compulsary the GST no.

  5. Viren says:

    You should update your posts after the changes come over the time. Like the exemption limit for E-Commerce operator is now changed.
    Because readers just read posts with full faith. They don’t make any further inquiry about given the information.

    1. TG Team says:

      In our opinion Every electronic commerce operator has to compulsorily register as per provisions of section 24(x) of CGST Act, 2017. The benefit of threshold limit of Rs. 20 lakh (Rs. 10 lakh for special category states except J & K) is not applicable to them.

  6. TRI VIKRAM says:

    We have a Rural Women Self Help Group with 10 members producing and selling multiple items including handicrafts, food items, leather products, fancy lightings etc & selling their products into SARAS Mela organised by Govt within their own State(SGST) as well as Inter State(IGST). having total ssales less than 20 lakh. Do they need a GST registration at all?? Is there any difference between an Individual and a Group of persons in GST Law? Please help.

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