Registration
This query is : Resolved
11 July 2017
zero rated tax dealer but 20 lacs over turnover, gst registration is mandatory?
11 July 2017
If the dealer was a VAT dealer, necessarily GST registration is required u/s 22(2) of the CGST Act,2017.
11 July 2017
zero rated tax dealer but 20 lacs over turnover, gst registration is mandatory for unregister dealer
20 July 2025
Yes, GST registration is mandatory for a zero-rated tax dealer if the aggregate turnover exceeds ₹20 lakhs, even if the dealer is currently unregistered.
✅ Here’s why:
Under the CGST Act, 2017, Section 22(1) clearly states:
Every supplier shall be liable to be registered under GST if their aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), regardless of whether their supplies are taxable, exempt, or zero-rated.
🧾 What is Zero-Rated Supply?
Zero-rated supply refers specifically to:
Exports of goods or services, or
Supplies to SEZ units/developers
Though tax is charged at 0%, such dealers are still considered taxable persons, and are eligible to claim Input Tax Credit (ITC) and refunds.
🔍 So, to answer directly:
Condition GST Registration Required?
Turnover > ₹20 lakhs ✅ Yes
Supplies are zero-rated (e.g., exports) ✅ Yes
Dealer is currently unregistered ✅ Yes, must register
✅ Here’s why:
Under the CGST Act, 2017, Section 22(1) clearly states:
Every supplier shall be liable to be registered under GST if their aggregate turnover exceeds ₹20 lakhs (₹10 lakhs for special category states), regardless of whether their supplies are taxable, exempt, or zero-rated.
🧾 What is Zero-Rated Supply?
Zero-rated supply refers specifically to:
Exports of goods or services, or
Supplies to SEZ units/developers
Though tax is charged at 0%, such dealers are still considered taxable persons, and are eligible to claim Input Tax Credit (ITC) and refunds.
🔍 So, to answer directly:
Condition GST Registration Required?
Turnover > ₹20 lakhs ✅ Yes
Supplies are zero-rated (e.g., exports) ✅ Yes
Dealer is currently unregistered ✅ Yes, must register
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