GST registrations began on July 1, 2017. Some people are exempt from GST Registration because of the nature of their business. This means that your business’s nature will determine whether you are exempt from paying the goods and services tax. You do not have to pay GST if your business does not involve the sale of goods or the provision of services. At the same time, farmers are exempt from paying GST. Let us read more about GST Exemptions List – Latest Details.
The taxpayers who are exempted from GST Registration are:
- Agriculturists
- People falling in threshold exemption limit
- People making nil-rated/ exempt supplies of goods and services
- People making non-taxable/ non-GST supplies of goods and services
- Activities that are neither the supply of goods nor services
- People making supplies that are covered under the reverse charge.
| A Non-taxable supply is a supply of goods or services, or both, that is not taxed under the CGST or IGST Acts. To qualify as a non-taxable supply under the GST, a transaction must be a ‘supply’ as defined by the GST law. This definition only applies to supplies that are not subject to GST, such as alcoholic liquor for human consumption and articles listed in Section 9(2) or Schedule III. |
Let us now go over all of the people who have been exempted from GST registration:
Agriculturists
An agriculturist is someone who sells products derived from his farm’s cultivation. People from this industry will be exempt from GST registration. Agro-inputs such as seeds, fertilisers, irrigation (which requires electricity), machinery, and all other agricultural services are also exempt from GST.
Those With Turnover Less Than The Threshold Exemptions Limit
Any business entity supplying goods which has an annual turnover less of than ₹ 40 lakh and services lessthan ₹ 20 lakh are given exemptions from GST registration. But states like Assam, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Arunachal Pradesh, Jammu and Kashmir, Himachal Pradesh and Uttarakhand (special category states) where the threshold limit is ₹ 20 lakh for goods and ₹10 lakh for services.
People making Nil-Rated/ Exempt supplies
People who are engaged in the business of supplying necessity items which are in the exemptions list of GST.
Some of these are mentioned below:
- All unprocessed food products like wheat, rice, bread, cereals, milk, vegetables, eggs, fish, meat, salt etc.
- Travel by train local and sleeper classes
- Education
- Healthcare (not including medicines)
- Lodges and hotels with room rent less than ₹ 1,000 per day
- Children’s colouring /drawing books
- Sindoor, bindis bangles, etc
People Making Non-Taxable/ Non-GST Supplies
The following items also do not come under the purview of GST:
- Petroleum crude and petrol
- Natural gas
- Electricity
- High speed diesel
- Alcohol for human consumption
- Aviation turbine fuel
Activities That are Neither Supply of Goods nor Services
These include:
- Services by an employee
- Services by a Court or Tribunal
- Functions and duties of –
- MLAs, MPs, Members of Municipalities, Panchayats, Municipalities and other local authorities;
- People holding any Constitutional Post;
- People as a Member, Chairperson or a Director in a body.
- Funeral Services
- Sale of building and land
- Actionable claims (other than betting, lottery and gambling)
People Covered Under Reverse Charge
On 19th June 2016 via Notification No. 5/2017, the Central Government has exempted people from obtaining registration who are engaged only in making supplies of taxable goods or services, total tax on which is liable to be paid on the reverse charge basis by the recipient of such goods or services. This notification came into force on 22nd June 2016.
| The government supplies of approximately 149 items of goods under Section 11(1) of the CGST Act of 2017. For example, electricity, salt, fresh fruits, plastic bangles, passenger baggage, and so on. This was done through: Notification No. 28/2017, 35/2017, 42/2017, 7/2018, and 19/2018 – Central Tax (Rate) |
