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Hello friends, greetings for the day in the current article we will discuss about the person who are not required to get themselves registered under GST

As per section 23 of CGST Act 2017,

1. The following persons shall not be liable to registration namely:-

(a).  Any person engaged “Exclusively” in the business of   supplying goods and services or both that are

(i) Not liable to tax or

(ii) Wholly exempt from the tax

Under this act or under the Integrated goods and services  tax Act.

(b). An agriculturist, to the extent of supply of produce out of cultivation of land.

2. The government may on the recommendation of the GST council by notification specify the category of person who may be exempted from obtaining registration under this act.

For the better understanding of above provisions we should understand certain definitions

Non taxable supply- As per section 2(78) of CGST Act it means a supply of goods or services or both which is not leviable to tax under this act or under the Integrated goods and service tax act.

Exempt supply – As per section 2(47) of CSGT Act it means a supply  of goods or services or both which attract “Nil rate” of tax or which may be wholly exempt from tax under section 11 or under section 6 of Integrated goods and service tax and also includes non taxable supply.

Agriculturists – As per section 2(7) Agriculturist means an individual or a Hindu undivided family who undertakes cultivation of land by own labour or 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.

So it can be said that a person is not required to get its registration under GST if the person is supplying or is engaged in exclusively for non taxable supplies or the goods or services which are wholly exempt from tax

Vide Notification No. 5/2017-Central Tax Dated: 19/06/2017

According to sec 23(2) and as per vide notification no 5/2017 the central government has specified the persons who are engaged in supply of taxable goods or services and the total tax on which is liable to be paid by the recipient of such goods/services under 9(3) of the CGST Act 2017 as the category of person are exempted from obtaining registration.

As per the above notification if any goods or services or both on which under reverse charge GST is to be paid by the recipient and the supplier is engaged exclusively for such supply of goods and services then the supplier is not liable to get registered under GST.

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June 2024