To take GST Number is mendatory or not?
This query is : Resolved
04 September 2017
hello sir,
If there is an unregistered dealer dealing in totaly exempted tax category of goods. like wheat, bajra,etc. They have turnover >20 lacs. Is they need to take GST Number??
Can they sold their good interstate or not??
please suggest me in this regard.
Guest
Guest
(Expert)
04 September 2017
If he is dealing only in exempted goods then no need to obtain registration
Guest
Guest
(Expert)
04 September 2017
For more details please see the video
https://youtu.be/DV_UzOkvUIs
02 August 2025
Great question! Here’s a clear explanation about GST registration for dealers dealing in exempted goods like wheat, bajra, etc.:
---
### 1. **Is GST registration mandatory for dealers dealing only in exempted goods if turnover exceeds Rs. 20 lakhs?**
* **No, GST registration is generally not mandatory** if the dealer is dealing exclusively in goods that are *fully exempted* from GST.
* The basic threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for some special category states) applies to *taxable turnover*.
* Since exempted goods have **zero GST rate**, their turnover does **not attract GST** and hence registration is not mandatory on turnover basis alone.
---
### 2. **Can such unregistered dealers sell exempted goods interstate?**
* Normally, interstate sales require GST registration **regardless of turnover**, *unless* the goods are exempt.
* Since wheat, bajra, etc. are exempt goods, they **can be sold interstate without GST registration**.
* But, if the dealer wants to collect input tax credit or deal with other taxable supplies, then GST registration becomes mandatory.
---
### 3. **Important notes:**
* If the dealer deals *only* in exempted goods and turnover exceeds the threshold, **no GST registration is needed**.
* If the dealer deals in some taxable goods along with exempt goods, GST registration is mandatory if taxable turnover exceeds Rs. 20 lakhs.
* Interstate sales of exempt goods without GST registration are allowed.
* But if the dealer is making any interstate taxable supplies, GST registration is compulsory.
---
### **Summary:**
| Condition | GST Registration Required? | Interstate Sales Allowed? |
| ------------------------------------------- | -------------------------- | --------------------------------------------------------------- |
| Only exempted goods, turnover > 20 lakhs | No | Yes, exempt goods interstate sales allowed without registration |
| Taxable goods included, turnover > 20 lakhs | Yes | Yes |
---
If you want, I can help you check the specific exempted goods list or the latest GST notifications to confirm your case. Would you like that?
---
### 1. **Is GST registration mandatory for dealers dealing only in exempted goods if turnover exceeds Rs. 20 lakhs?**
* **No, GST registration is generally not mandatory** if the dealer is dealing exclusively in goods that are *fully exempted* from GST.
* The basic threshold limit of Rs. 20 lakhs (Rs. 10 lakhs for some special category states) applies to *taxable turnover*.
* Since exempted goods have **zero GST rate**, their turnover does **not attract GST** and hence registration is not mandatory on turnover basis alone.
---
### 2. **Can such unregistered dealers sell exempted goods interstate?**
* Normally, interstate sales require GST registration **regardless of turnover**, *unless* the goods are exempt.
* Since wheat, bajra, etc. are exempt goods, they **can be sold interstate without GST registration**.
* But, if the dealer wants to collect input tax credit or deal with other taxable supplies, then GST registration becomes mandatory.
---
### 3. **Important notes:**
* If the dealer deals *only* in exempted goods and turnover exceeds the threshold, **no GST registration is needed**.
* If the dealer deals in some taxable goods along with exempt goods, GST registration is mandatory if taxable turnover exceeds Rs. 20 lakhs.
* Interstate sales of exempt goods without GST registration are allowed.
* But if the dealer is making any interstate taxable supplies, GST registration is compulsory.
---
### **Summary:**
| Condition | GST Registration Required? | Interstate Sales Allowed? |
| ------------------------------------------- | -------------------------- | --------------------------------------------------------------- |
| Only exempted goods, turnover > 20 lakhs | No | Yes, exempt goods interstate sales allowed without registration |
| Taxable goods included, turnover > 20 lakhs | Yes | Yes |
---
If you want, I can help you check the specific exempted goods list or the latest GST notifications to confirm your case. Would you like that?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
CAclubindia
