Dear Raja
I dont think registration is required if a person deals exclusively in wholly exempt goods or services even if he makes inter-state supply.
The section which tells you to mandatorily register in case of inter state supply is section 24 which overrides section 22 (which talks about threshold limits) and not section 23.
Section 23 talks about cases where a person is not required to register irrespective of whatever his aggregate turnover is and one of the cases it mentions is of a person dealing exclusively in exempted goods or services.
So in my view a person dealing in interstate supply of only exempted goods or services is not required to any registrtion vide section 23.
regards
shivani
CAclubindia
