Person Not Liable For Registration Under Gst

By Author: anand bansal
Total Articles: 2
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Section 23 lists the persons who are not liable to registration. Thus, the persons so listed will not be the ‘taxable persons’.
Person engaged exclusively in the business of supplying goods and
/or services not liable to tax/wholly exempt from tax:
As per section 23, 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 CGST Act/ IGST Act shall not be liable to registration.

1. An agriculturist, to the extent of supply of produce out of ultivation of land:
An agriculturist to the extent of supply of produce out of cultivation of land is also not liable to registration. The term agriculturist has been defined under section 2(7) of the CGST Act as an individual/Hindu Undivided Family (HUF) who undertakes cultivation of land—
by own labour, or
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.

From the above definition, it is clear that ...
... the benefit of not being liable to registration is only restricted to the agriculturists who are individuals or HUFs. Further, if an agriculturist is also engaged in making any supply other than supply of produce out of cultivation of land, he shall be liable to registration based on applicable threshold limit.

Following category of persons have been notified as being exempted from obtaining registration under GST law:

A. Persons making only reverse charge supplies
Persons who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under section 9(3) have been exempted from obtaining registration [Notification No. 5/2017 CT dated 19.06.2017].

B. Persons making inter-State supplies of taxable services up to ` 20 lakh
The persons making inter-State supplies of taxable services and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of ` 20 lakh in a financial year have been exempted from obtaining compulsory registration. However, the aggregate value of such supplies, computed on all India basis, should
not exceed an amount of ` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland [Notification No. 10/2017 IT dated 13.10.2017].

C. Persons making inter-State taxable supplies of notified handicraft goods up to ` 20,00,000
As we have seen earlier that as per section 24 read with Notification No. 10/2017 IT, a person making inter-State supplies of goods is liable to be registered compulsorily under GST irrespective of the threshold limit.
However, in the following cases, persons making inter-State supplies of goods have been exempted from obtaining registration:
Persons making inter-State taxable supplies of notified5 handicraft goods*.

Persons making inter-State taxable supplies of products, when made by craftsmen pedominantly by hand even though some machinery may also be used in the process.
Conditions to be fulfilled:
The aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of ` 20 lakh [` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland] in a FY.
Such persons have obtained a PAN and have generated an e- way bill [Notification No. 3/2018 IT dated 22.10.2018].

D. Casual Taxable Persons making inter-State taxable supplies of notified handicraft goods up to ` 20 lakh
As we have seen earlier that as per section 24, a CTP is liable to be registered compulsorily under GST irrespective of the threshold limit.
However, following categories of CTPs have been exempted from obtaining registration:
• CTPs making inter-State taxable supplies of goods, [as referred in Point C. above] or
• CTPs making inter-State taxable supplies of [as
• referred in Point C. above], when made by the craftsmen predominantly by hand even though some machinery may also be used in the process.

Conditions to be fulfilled:
CTPs are availing benefit of Notification No. 03/2018 IT dated 22.10.2018
The aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of ` 20 lakh [` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland] in a FY.
Such persons have obtained a PAN and have generated an e-way bill [Notification No. 56/2018 CT dated 23.10.2018].

E. Persons making supplies of services through an ECO (other than supplies specified under section 9(5) of the CGST Act) with aggregate turnover up to ` 20 lakh
Persons making supplies of services, other than supplies specified under section 9(5), through an ECO who is required to collect tax at source under section 52, and having an aggregate turnover, to be computed on all India basis, not exceeding ` 20 lakh (` 10 lakh in case of Special Category States of Mizoram, Tripura, Manipur and Nagaland) in a FY, have been exempted from obtaining compulsory registration [Notification No. 65/2017 CT dated 15.11.2017].
Therefore, all service providers, whether supplying intra-State, inter- State or through ECO, will be exempt from obtaining registration, provided their aggregate turnover does not exceed ` 20 lakh (` 10 lakh in special category States except Jammu & Kashmir).