Reg. GST Registration exemption if handicraft goods are supplied

CBIC hereby specifies the categories of casual taxable persons who shall be exempted from obtaining registration under Central Goods and Services Tax Act, 2017 vide Notification No. 56/2018 – Central Tax Dated 23rd October, 2018.

Exemption from compulsory registration to inter-state suppliers of handicraft goods

• Notification specifies two categories of inter-state suppliers of handicraft goods who shall be exempt from taking compulsory registration a casual taxable persons.
• Notification supercedes earlier notification no.32/2017 – CT, dated the 15.09.2017.
• 1^st Category: Exemption available to such persons making inter-State taxable supplies of handicraft goods as defined in the “Explanation” in notification No. 21/2018 -Central Tax (Rate), dated the 26.07.2018” and falling under the Chapter, Heading, Sub-heading or Tariff item specified in the Table contained in the said notification.
• The Notification 21/2018 contains a list of 39 entries pertaining to handicraft items which are eligible to concessional rate of duty.
• “handicraft goods” means – Goods predominantly made by hand even though some tools or machinery may also have been used in the process; such goods are graced with visual appeal in the nature of ornamentation or in-lay work or some similar work of a substantial nature; possess distinctive features, which can be aesthetic, artistic, ethnic or culturally attached and are amply different from mechanically produced goods of similar utility.
• Or 2^nd Category: Exemption available to such persons making inter-State taxable supplies of the products mentioned in Notification 56/2017 (the present notification), when made by the craftsmen predominantly by hand even though some machinery may also be used in the process.
• This notification prescribes a list of 28 handicraft items, suppliers of which will be eligible for exemption from compulsory registration requirement while making inter state supplies
• Further conditions for availing exemption from registration.
  • Such persons are availing the benefit of notification No. 03/2018 – Integrated Tax, dated 22.10.2018
  • The aggregate value of such supplies, to be computed on all India basis, does not exceed the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory in accordance with section 22 (1) read with clause (iii) of the Explanation to that section.
  • Such persons shall obtain a PAN and generate an e-way bill in accordance with the provisions of rule 138 of the CGST Rules, 2017.

Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

Notification No. 56/2018–Central Tax

New Delhi, the 23rd October, 2018

G.S.R 1056(E)..—In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), hereinafter referred to as the “said Act”, the Central Government, on the recommendations of the Council and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue No. 32/2017 – Central Tax, dated the 15th September, 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1158 (E), dated the 15th September, 2017, except as respects things done or omitted to be done before such supersession, hereby specifies the categories of casual taxable persons (hereinafter referred to as „such persons‟) who shall be exempted from obtaining registration under the said Act-

(i) such persons making inter-State taxable supplies of handicraft goods as defined in the “Explanation” in notification No. 21/2018 -Central Tax (Rate), dated the 26th July, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.695 (E), dated the 26th July, 2018 and falling under the Chapter, Heading, Sub-heading or Tariff item specified in column (2) of the Table contained in the said notification and the Description specified in the corresponding entry in column (3) of the Table contained in the said notification;

or

(ii) such persons making inter-State taxable supplies of the products mentioned in column (2) of the Table below and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the said Table, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process:-

Table

Provided that such persons are availing the benefit of notification No. 03/2018 – Integrated Tax, dated the 22nd October, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1052(E), dated the 22nd October, 2018:

Provided further that the aggregate value of such supplies, to be computed on all India basis, does not exceed the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory in accordance with sub-section (1) of section 22 of the said Act, read with clause (iii) of the Explanation to that section.

2. Such persons mentioned in the preceding paragraph shall obtain a Permanent Account Number and generate an e-way bill in accordance with the provisions of rule 138 of the Central Goods and Services Tax Rules, 2017.

[F. No. 349/58/2017-GST(Pt.)]

(Gunjan Kumar Verma)

Under Secretary to the Government of India