Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees.

#In Special States this limit is rupees 10 lakh.

#Council enhance the aggregate turnover from twenty lakh rupees to such amount not exceeding forty lakh rupees in case of supplier who is engaged exclusively in the supply of goods.

However under section 24, compulsory registration is required in case :

A person making Inter state Supply:

  • However, threshold limit of Rs. 20 lakh (Rs. 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland) is available in case of  “inter-State supply of taxable services and of notified handicraft goods “. [Notification 3/2018 IT dated 22.10.2018].
  • Persons who supply goods and/or services, through such ECO who is required to collect tax at source under section 52, but threshold limit of Rs. 20 lakh (Rs. 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland) is available in case of suppliers supplying services through ECO.

So, From the above provisions we can conclude that A Supplier supplying Handicraft items i.e Handmade items (dresses, wooden items etc.) are not liable to registered under GST if there Aggregate value of Taxable Supplies don’t exceed Rupees twenty lakhs .

So, even such suppliers are making an inter state supply, they are exempted from registration vide such rules .

However Certain e- commerce operators necessarily required GST Registration to associate the supplier with such E-commerce site, for that purpose one have to take GST Registration.

if E- commerce operator don’t get satisfy with the guidance given above , as part of their Compliance procedures.

PLEASE feel free to contact for any further query at ([email protected])

Author Bio

Qualification: CA in Practice
Company: Sheril Gupta & Associates
Location: RAISINGHNAGAR, Rajasthan, India
Member Since: 25 May 2019 | Total Posts: 2

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