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

CBIC Notification 2/2017, CTR

 Exempted Services

CBIC Notification 12/2017, CTR

2.

 

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.

 

5.

 

Persons making interstate supplies of taxable services upto ₹20 Lakhs** Notification No. 10/2017-IT dated 13-10-2017
 

6.

 

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

 

7.

 

Persons making interstate taxable supplies of notified handicraft goods upto ₹20 Lakhs** Notification No. 3/2018-IT dated 22-10-2018
 

8.

 

 

Persons making supplies of services through ECO with aggregate Turnover of ₹20 Lakhs**

 

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

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