Persons not liable for registration
(1) The following persons shall not be liable to registration, namely: —
(a) 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.
(2) 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.
Certain persons are exempt from obtaining registration under GST. As per Section 23 of CGST Act, 2017, the following persons are not liable to be registered under GST:
• persons engaged in supply of goods or services or both which are wholly exempted
• agriculturists who supply produce cultivated out of his land
• persons notified who are exempted from obtaining registration by way of notification
They are not required to be registered even if their turnover exceeds 20 lakhs or such other prescribed threshold. To this extent, section 23 overrides the provisions of Section 22.
Persons engaged in supply of goods or services or both which are wholly exempted
Persons engaged in the exclusive supply of goods or services or both which are fully exempt are not liable to register under GST. However, if the persons deal with taxable as well as exempt supplies of goods or services, they shall be liable to be registered as per Section 22. The definition of exempt supplies has been discussed earlier. Exempt supplies include non-taxable supplies too. Thus, if a person is supplying only petrol, then he will not be liable to be registered under GST. Similarly, if a charitable trust is exclusively into rendering charitable services, then it is not required to be registered under GST.
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