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Sovon Sett

Sovon Sett (Querist)

11 July 2017 zero rated tax dealer but 20 lacs over turnover, gst registration is mandatory?

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

11 July 2017 If the dealer was a VAT dealer, necessarily GST registration is required u/s 22(2) of the CGST Act,2017.

Sovon Sett

Sovon Sett (Querist)

11 July 2017 zero rated tax dealer but 20 lacs over turnover, gst registration is mandatory for unregister dealer

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

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

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