GST Registration Relaxation To Rice Traders

Hey Sheik! About GST registration relaxation for rice traders:

Key points:

• Rice is a food grain and is exempted from GST under Notification No. 2/2017-Central Tax (Rate) dated 28.06.2017.

• Section 23 of CGST Act says a person is not liable to register if they deal exclusively in exempt supplies.

• Since rice (food grains) is fully exempt, traders dealing only in rice are not liable for GST registration regardless of turnover.

• So, rice traders do not need GST registration even if turnover exceeds ₹20 lakh (normal threshold).

Relevant references:

• Section 23(1)(a) CGST Act, 2017 — no registration if only exempt supplies.

• Notification No. 2/2017-CT (Rate) dated 28.06.2017 — exempts food grains like rice.

• Also see Notification No. 12/2017-CT (Rate) dated 28.06.2017 about exemption on food grains.

Summary:

Rice traders dealing exclusively in rice (exempt supply) are not required to register under GST, no matter the turnover.

If they deal in any other taxable goods or services, registration rules will apply.