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Is an exempted goods trader required to register under GST?

Sunil Agrawal (225 Points)

28 March 2019

Trader whose turnover more than 2cr. but all goods are exempted/nil rated required registration in GST Act ?

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6 Replies

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 28 March 2019

Note that there is difference in exempt supply and nil rated supply.
If you are selling Nil rated supply then there is no need to take registration.

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Radhey Shyam Jha (Student) (1599 Points)
Replied 28 March 2019

Agree with what @ Sahil Jain sir said

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pritesh (CA Final student) (7101 Points)
Replied 28 March 2019

agreed with sahil sir

Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 29 March 2019

Read Sec 23 of CGST act, it defines persons not liable for registration.
It says person who is wholly engaged in business of supplying goods not liable to tax or exempt from tax are not required to tax registration.

Shivam RC (Student) (23683 Points)
Replied 29 March 2019

As per the Provision of Section 23(1) (a) of the CGST Act 2017 :

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; are not liable to take Registration under GST.

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Sahil Jain (FAFD, DISA, CA) (Practicing Chartered Accountant ) (2476 Points)
Replied 29 March 2019

Dear Vishesh sir,
yes it will be included in aggregate turnover, agreed to that
but here question is whether he is liable to take registration or not
and sec 23 says it is not mandatory to take registration if he is making exclusively exempt sales