Registration in case of Zero Rated Goods

This query is : Open

Mohit Batra (Querist)
Follow

26 May 2017 Dear Sir/Madam, A dealer who deals exclusively in zero rated goods . whether he is required to register under the GST.

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
Follow

26 May 2017 No he is not required to register by virtue of Section 23 of CGST Act.

Guest

Guest (Expert)

26 May 2017 According to me person engaged in zero rate supply has to take registration because he option to pay tax and then avail refund .So for doing that he has to obtained registration

Upgrade to CAclubindia Pro. Subscribe Now!

CA CS Jainam Shah

CA CS Jainam Shah (Expert)
Follow

27 May 2017 I am citing here lines from section 23 of CGST Act.. "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 and Services Tax Act;" You can interpret yourself..

Guest

Guest (Expert)

27 May 2017 Sir under which category you are taking zero rate supply?

Guest

Guest (Expert)

27 May 2017 16. (1) “zero rated supply” means any of the following supplies of goods or services
or both, namely:––
(a) export of goods or services or both; or
(b) supply of goods or services or both to a Special Economic Zone developer
or a Special Economic Zone unit.
(2) Subject to the provisions of sub-section (5) of section 17 of the Central Goods
and Services Tax Act, credit of input tax may be availed for making zero-rated supplies,
notwithstanding that such supply may be an exempt supply.
(3) A registered person making zero rated supply shall be eligible to claim refund
under either of the following options, namely:––
(a) he may supply goods or services or both under bond or Letter of Undertaking,
subject to such conditions, safeguards and procedure as may be prescribed, without
payment of integrated tax and claim refund of unutilised input tax credit; or
(b) he may supply goods or services or both, subject to such conditions,
safeguards and procedure as may be prescribed, on payment of integrated tax and
claim refund of such tax paid on goods or services or both supplied,
in accordance with the provisions of section 54 of the Central Goods and Services Tax Act
or the rules made thereunder.

Guest

Guest (Expert)

27 May 2017 Sir please read sub section (3) of igst Act.It says person making zero rate Supply has option to claim refund which means he has to pay tax first and then obtain refund for which he needs to register 1st