Regustrqtion for Exempted good inter state

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Devansh Jain (Querist)
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27 June 2017 As per IGST Act, Sec 23 says no need to get registered if making wholly exempt sales. sec 24 says registration required if making inter state sale. Which of these 2 section over rides the other? If I am making 50lacs inter-stae sale of exempted good do I need to get registered under GST or not?

CA S K MISHRA

CA S K MISHRA (Expert)
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27 June 2017 In case of Inter State sale of Goods, Registration is mandatory & IGST is payable

Devansh Jain

Devansh Jain (Querist)
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27 June 2017 But as per the starting language of sec 24 making inter-state supply registration mandatory, the sec 24 over rides only sec 22(1) dealing with turnover limit of rs 20 lacs.. Sec 23 is not over-ridden by this sec 24

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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20 July 2025 Great question about GST registration and exempted goods with respect to inter-state sales! Let me clarify the interplay between Section 23 and Section 24 of the IGST Act and what applies.

Relevant Sections:
Section 23, IGST Act, 2017:
Says a person making wholly exempt supplies (including nil-rated or non-GST goods) is not required to register.
Section 24, IGST Act, 2017:
Says every supplier making inter-state taxable supply is required to register, irrespective of turnover threshold.
Your question:
You are making inter-state sales of exempted goods worth Rs 50 lakhs.
Do you need to register under GST or not?
Important clarifications:
Is inter-state sale of exempted goods a taxable supply?
Exempted goods mean no GST is charged on the supply.
However, the goods are still supplied across states.
For IGST Act registration purposes, inter-state supply includes both taxable and exempt supplies.
Does Section 24 require registration even for exempt inter-state supplies?
Section 24 overrides the threshold exemption in Section 22 but not Section 23.
Section 23 says if your supplies are wholly exempt, you are not required to register, even if inter-state.
Judicial pronouncements and government clarifications have upheld that:
If the supplies are wholly exempt, no registration is required.
Inter-state sale of exempted goods does not compel registration if there are no taxable supplies.

Aashok Kumar Sharma online

Aashok Kumar Sharma online

(Expert)
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20 July 2025 So, in your case — Rs 50 lakhs of inter-state sales of wholly exempted goods — you do NOT need to register under GST.

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