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𝗚𝗦𝗧 𝗥𝗲𝗴𝗶𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻 𝗘𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻𝘀

GST registration is not compulsory for every supplier. 

But an exemption that applies to one activity may not protect another—

and growing businesses should know the difference.

 

Who Can Remain Unregistered?

Under Section 23 of the CGST Act, 

persons exclusively supplying wholly exempt or non-taxable goods or services, and agriculturists selling produce from cultivation of their land, are not required to register. 

Section 23 overrides the usual threshold and compulsory-registration provisions. 

Other exemptions depend on notifications and conditions.

 

Important Business Situations

• Reverse charge: 

Suppliers making only specified supplies on which the recipient pays GST may qualify for exemption; 

metal-scrap suppliers face a specific exclusion.

• Inter-State supplies: 

Small service providers and eligible job workers may receive registration relief within applicable turnover limits and conditions.

• Handicrafts: 

Certain inter-State handicraft suppliers and casual taxable persons have conditional relief, including PAN and e-way bill requirements.

• Goods-only businesses: 

The ₹40 lakh registration exemption applies only where the notified conditions are met; 

it is not a universal limit.

• E-commerce: 

Eligible small sellers of goods may supply through platforms without registration, subject to restrictions on inter-State sales, State coverage, PAN and portal enrolment. 

Eligible service suppliers also have separate relief.

 

Example

A Coimbatore handicraft seller shipping to Bengaluru should check the product notification, aggregate turnover and e-way bill conditions before assuming registration is compulsory—or exempt. 
 

A Chennai online retailer must separately examine e-commerce enrolment conditions.

 

What Business Owners Should Do
 

Review every revenue stream, State of supply, platform arrangement and applicable notification. 

Document why registration is—or is not—required, and revisit the position when activities change.

 

Before expanding into new markets or channels, ask your tax team to review your GST registration exposure.

 

CA Sailesh Bhandari

 

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