LIVE GST Certification Course by CA Arun Chhajer begins 27th April. Register Now!!

Regarding registration

srt hup (14 Points)

26 June 2017

0%taxation traders is it compulsory for gst registration

Reply
Follow
Share

17 Replies

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 26 June 2017

T/O Above 20lakhs ll be register compulsary under GST

Devansh Jain (...) (1269 Points)
Replied 26 June 2017

incorrect answer Raja

No requirement to reg if a person provides ONLY exempt supplies or supplies not liable to GST

(Reference: Sec 23 of CGST Act)

1 Like

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 26 June 2017

Mr. Devansh Jain...

Where is shown the act...?
Please mention if it's notified Sec 23 of CGST...

I think more difference between 0% tax and Exempt...!

1 Like

Devansh Jain (...) (1269 Points)
Replied 26 June 2017

Mr. Raja, it is clearly mentioned in section 23(1)(a) that no need to registration if person is making wholly exempt supply.
Now, section 2(47) defines 'exempt supply'. As per that definition, exempt means NIL rated or exempt under a notification.

Even logically..what for such a person will get registered if no output liability? only for refinds?

The law is pretty much clear and even similar to existing law..

1 Like

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 26 June 2017

No need to get registered if you are dealing in exempted supply only..

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 27 June 2017

0% Taxable goods want Registration at above 20Lakhs (T/O 20L)......

Define 0% and Exempt:

ZERO RATING

Almost all countries apply preferential rates to some goods and services, making them either “zero rated” or “exempt.” For a “zero-rated good,” the government doesn’t tax its retail sale, but allows credits for the value-added tax (VAT) paid on inputs. This reduces the price of a good. Governments commonly use zero-rated goods to lower the tax burden on low-income households by zero-rating essential goods, such as food and utilities or prescripttion drugs.

EXEMPTING

If, by contrast, a good or business is “exempt,” the government doesn’t tax the sale of the good, but producers cannot claim a credit for the VAT they pay on inputs to produce it. Because exempting breaks the VAT’s chain of credits on input purchases, it can sometimes raise prices and revenues. Hence, governments generally only use exemptions when value-added is hard to define, such as with financial and insurance services.

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

Mr. Raja, your information might be correct for other countries or other laws or other government..
but in India and as per Indian GST laws, EXEMPT and NIL rated means same (refer the precise section mentioned in my previous reply). The same opinion is seconded by a fellow expert Ms. Rashmi also..
Wholly 0% taxation traders do

Devansh Jain (...) (1269 Points)
Replied 27 June 2017

do not require registration"

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 27 June 2017

Thank You so Much Mr. Devansh Jain.,

I Agreed your all replies and Madam. Rashmi Gandhi...

Thanks...

1 Like

P C Agrawal (Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad) (8229 Points)
Replied 27 June 2017

No need to get registered as clearly provided in GST Act.

RAJA P M ("Do the Right Thing...!!!") (127133 Points)
Replied 27 June 2017

Originally posted by : P C Agrawal
	No need to get registered as clearly provided in GST Act.

Okay sir....

I Accept this one.......

Khalilullah Khan (worli) (22 Points)
Replied 28 June 2017

sir, what if i am giving service out of country (india) and it is export of service and it is fully exmpted . my question is do i need to get GST registraion?

CA Rashmi Gandhi (Chartered Accountant) (86220 Points)
Replied 28 June 2017

Then you required to get register under GST compulsorily......

Devansh Jain (...) (1269 Points)
Replied 28 June 2017

No need to register under gst for supply of wholly exempt goods/services.

@ Rashmi: The sec 24 making reg for inter-state sales compulsory only over rides sec 22(1) which requires turnover based registration and doesn't over rides sec 23 which gives exemption from registration to suppliers making wholly exempt supply.
Correct me if I m wrong..