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Is GSTIN Mandatory in this case?

Arunachalam (Proprietor) (186 Points)

30 July 2018

Is registering under GST mandatory for a trader who involves in 100 percent exempted sales irrespective of the income is earned (say for example: income per year is 50 lakhs)? Also, what if he involves in interstate purchase?

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4 Replies

Deepak Gupta (CA Student) (15922 Points)
Replied 30 July 2018

Persons engaged exclusively in the supply of exempted goods or services or both are the ones not liable to obtain registration. Sec. 23(1)(a) of the CGST Act.

Further, as per Sec. 24(i) of the CGST Act, persons making any inter-State taxable supply are required to obtain registration compulsorily under this Act. But the supply should be taxable. So, a person engaged exclusively in the supply of exempted goods is exempted from obtaining registration.

It should be noted that, such person will be required to obtain registration, if he procures the notified goods /services (covered u/s 9(3) of the CGST Act, i.e. RCM), even though sec. 23 gives immunity to such persons from registration.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 30 July 2018

If Trades fully exempted goods then no need to Register under GST...

No more restriction if purchase from other State.

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Vinod Babu (24191 Points)
Replied 30 July 2018

Agreed with Mr Deepak.
If the dealer is trading with only exempted goods, then no need to gst registration.

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Shivam RC (Student) (23683 Points)
Replied 30 July 2018

There is no need to take Registration under GST if you are dealing in EXEMPT SUPPLIES as per SECTION 23 of the CGST Act 2017...

However, there is no restrictions on INTER STATE INWARD SUPPLIES (Purchases) made by the Supplier...

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