Person not liable to take registration under GST


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Section 23. Persons not liable for registration.

(1) The following persons shall not be liable to registration, namely:––

  • any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from 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.

The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

Simplicity:-

Following persons not required to obtain registration under GST Act:-

  • Person engaged exclusively in the supply of goods or services or both
  • that are wholly exempt
  • that are not liable to tax
  • An Agriculturist. This exemption is available to the extent of supply of produce out of cultivation of land.
  • If the person engaged in supplying taxable goods or services or both on which recipients is liable to pay tax under reverse charge mechanism (RCM).
  • The person engaged in making inter-state or intra-state supply of services or goods or both and aggregate turnover of that supply in a financial year is less than Rs. 20 lakhs (Rs. 40 lakhs w.e.f. 01-04-2019).

However above exemption limit is not applicable to the person who is engaged in supply, through E- Commerce operator who is required to collect tax collect at sources (TCS).

  • Government by notification specify the category of persons who is not require to take registration under GST Act.
  • Aggregate Turnover means:-

Included :-

Taxable Supply + Exempt Supply (Including Non-GST Supply) + Zero Rated Supply + Inter-state Supply (Branch transfer having same PAN but different GST number)

Excluding:-

Reverse charge supply + CGST/SGST/IGST/UTGST/Cess

Section 24, Person liable to take Compulsory registration:- 

Notwithstanding anything contained in sub-section (1) of section 22, following categories of persons shall be required to be registered under this Act:-

  • Person making any inter-state supply
  • Casual taxable persons making taxable supply
  • Person who required to pay tax under reverse charge
  • Person who are required to pay tax under sub-section (5) of section 9.
  • Non-resident taxable persons making taxable supply.
  • Persons who are required to deduct tax under section 51,
  • whether persons who are required to deduct tax under section 51, whether or not separately registered under this Act;
  • Persons who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise;
  • Input Service Distributor, whether or not separately registered under this Act;
  • Persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  • Every electronic commerce operator;
  • every person supplying online information and database access or retrieval services from a place outside India to a person in India, other than a registered person; and
  • such other person or class of persons as may be notified by the Government on the recommendations of the Council.

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