Section 23 of the CGST Act, 2017, specifies categories of individuals not liable for GST registration, primarily those exclusively supplying non-taxable or fully exempt goods/services, or an agriculturist selling produce from land cultivation, even if turnover exceeds thresholds, though the government can exempt others via notification. This section overrides standard registration mandates (like Section 22) for these specific suppliers, allowing them to operate without GST registration.
Clarification on GST Registration Exemption for Certain Individuals
Certain individuals are exempt from the requirement of obtaining Goods and Services Tax (GST) registration under specific provisions of the law. This exemption primarily applies to those whose activities do not fall within the scope of taxable supplies or who operate exclusively in non-taxable or exempt categories.
Categories of Persons Not Required to Register for GST
- Individuals engaged solely in the supply of non-taxable goods or services: These include activities that are explicitly exempt from GST as per the law, such as certain educational services, healthcare services, and agricultural produce sold by cultivators.
- Agriculturists selling land-grown produce: Farmers and agriculturists who sell their produce directly from land cultivation are generally not required to register for GST, even if their turnover exceeds the prescribed threshold.
- Persons covered under specific notifications: The government may notify additional categories of persons who are exempt from mandatory registration based on policy considerations.
Legal Basis
Section 23 of the Central Goods and Services Tax (CGST) Act, 2017, delineates these exemptions, overriding the general registration requirements stipulated in Section 22 for qualifying individuals. This provision ensures that certain small-scale or specific activity-based suppliers are not burdened with compliance obligations unnecessarily.
Summary
In essence, individuals whose activities involve exclusively non-taxable or exempt supplies, including agriculturists selling their produce directly from land, are not mandated to obtain GST registration. This exemption aims to simplify compliance for small-scale and specific sector participants while maintaining regulatory oversight over taxable entities.
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