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Exempt supply

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LAW STUDIO ASSOCIATES

252 Points Posted on 23 October 2020

Dear sir mai exempt goods ki supply karta hu mera turnover 40 lakh se zyada ho gaya kya mujhe gst lena zaruri hai

Replies (5)

Quick Summary

If you exclusively supply exempt goods, you generally don't need to register for GST, even if your turnover exceeds 40 lakhs. This is according to Section 23 of the CGST Act. However, be aware that if you receive any inward supplies subject to Reverse Charge Mechanism (RCM), there might be complexities and potential disputes, as some Advance Rulings have taken a contrary view.

charu sharma

26 Points Posted on 23 October 2020

As per general provision under CGST Act that if aggregate turnover exceed 20 lakh in the preceding FY is liable to registered under GST. Aggregate turnover include exempt supply also.

further, there is a specific condition that of specially deal in exempt supply then no need to take registration under GST as per section 23.

ayusmita

Tax consultant

5895 Points Posted on 23 October 2020

If a person is only dealing with or say dealing with 100% of exempted goods then he or she is not liable to register irrespective of trunover

JATINDER KUMAR

Accountant

3662 Points Posted on 23 October 2020

Not required to registered under GST if you are deal in 100% exempt supply

CA Mayank A Jain

Chartered Accountant in Practice

1260 Points Posted on 24 October 2020

Not required in terms of Section 23 however if there is any RCM inward supply, there could be disputes as there have been contrary AAR's thought not correct as Section 24 overrides Section 22 and not Section 23.