Compiler on Section 23 - Person who is not liable for registration under GST

23.1 Person who is only engaged in Exempt, Nil Rated, Non-GST Supplies

Question No.	Institute	Level	Term	QN	M
Question-1	FAQ	I	Registration	17	NA
Question-1A	ICSI	P	J21	1d(iii)	1
Question-2	FAQ	I	Registration	22	NA
Question-3	FAQ	I	Registration	6	NA

Question-1 [FAQ-Online-17]

Is it correct that person dealing exclusively in NIL rated or exempt goods/ services liable to register if turnover > 20/10 Lakh?

Ans: There is no liability of registration if the person is dealing with 100% exempt supplies

Question-1A [ICSI-P-J21-1(d)(iii)-1]

A person exclusively dealing in goods not liable to tax or wholly exempt from tax having a turnover of 1,00,00,000 is required to get registered under GST. [T/F]

Answer

False. As per Section 23 (1) of the Central Goods and Services Tax 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 & Services Act, 2017 (IGST Act), is not liable for registration.

Question-2 [FAQ-Online-22]

Is there any concept of area based exemption under GST?

Ans: There will be no area based exemptions in GST.

Question-3 [FAQ-Online-6]

Not liable to tax as mentioned u/s 23 of CGST means nil rated supply or abated value of supply?

Answer

As per section 2(78) “non-taxable supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the IGST Act;

23.2 Agriculturist to the extent of supply of produce out of cultivation of land

Question No.	Institute	Level	Term	QN	M
Question-1	ICSI	P	J21	2d(iii)	1.25
Question-2	ICMAI	I	D19	5a(i)	4
Repeated	ICSI	E	J19	5c	3

Question-1 [ICSI-P-J21-2(d)(iii)-1.25]

Farmer A is engaged in farming and cultivates agricultural produce from his own land. He supplies agricultural produce worth Rupees 41 lakh cultivated by him and Rupees 6 lakh belonging to his friend to Traders. Whether he has to get registered under GST Act ?

Answer

In terms of section 23(i) of the Central Goods and Services Tax Act, 2017, farmer shall not be liable to get registered under GST Act being an agriculturist to the extent of supply of produce out of cultivation of land. In this given case however, as the farmer has also supplied agricultural products processed by his friend his total turnover crosses rupees Forty lakhs (Rs.41 lakh + Rs.6 lakh), which is beyond the threshold limit for getting registered. Hence, he will be liable to get registered.

Question-2 [ICMAI-I-D19-5(a)(i)-4] [ICSI-E-J19-5c-3]

Discuss with reference to the provisions of CGST Act, Persons who are not liable for registration.

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Compiler on Section 23 - Person who is not liable for registration under GST