Exemption from Registration:

Supplier shall not be liable to registration if his aggregate turnover consists of only goods and/or services which are not liable to tax under this Act.

Examples:   • Taxpayers are engaged in supply of exempted goods. Taxpayers are engaged only in supply of goods which are outside purview of GST like liquor, petrol, diesel, crude oil, etc. • An individual importing service for personal consumption will not be liable to pay GST under reverse charge and therefore not liable to register under GST.

 

As per section 19 (12) of the Law, the Central or a State Government may, on the recommendation of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act.

 

Threshold shall not be applicable to the following categories of persons i.e. they are required to be registered irrespective of the threshold:

i. persons making any inter-State taxable supply, irrespective of the threshold specified under paragraph 1;

ii. casual taxable persons, irrespective of the threshold specified under paragraph 1;

iii. persons who are required to pay tax under reverse charge, irrespective of the threshold specified under paragraph 1;

iv. non-resident taxable persons, irrespective of the threshold specified under paragraph 1;

v. persons who are required to deduct tax under section 37;

vi. persons who supply goods and/or services on behalf of other registered taxable persons whether as an agent or otherwise, irrespective of the threshold specified under paragraph 1;

vii. input service distributor;

viii. persons who supply goods and/or services, other than branded services, through electronic commerce operator, irrespective of the threshold specified in paragraph 1;

ix. every electronic commerce operator, irrespective of the threshold specified in paragraph 1;

x. an aggregator who supplies services under his brand name or his trade name, irrespective of the threshold specified in paragraph 1; and

xi. such other person or class of persons as may be notified by the Central Government or a State Government on the recommendations of the Council.

A person may be liable for registration but may not be liable for payment of tax: Threshold for registration is given in paragraph 1 of Schedule III of the Act which is either [Rs. 9 Lakh] or [Rs. 4 Lakh] for north eastern States including Sikkim. However as per proviso to section 9 (1) of the Act, such person may not be considered as taxable
person for payment of tax until his aggregate turnover in a financial year exceeds [Rs ten lakh] or [Rs five lakh] for north eastern States including Sikkim. Thus a person may be registered under the Act but may not be liable for payment of tax.