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Person not liable for registration( section 23)

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sadaiyan 17420

15 Points Posted on 31 January 2020

persons who are engaged in making exclusively supplies covered under Rcm .give example?

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Quick Summary

This discussion clarifies GST registration requirements under Section 23 for individuals making only supplies subject to the Reverse Charge Mechanism (RCM). While aggregate turnover typically excludes RCM inward supplies, if your outward supplies (even if taxed under RCM) exceed the registration threshold (e.g., £10 lakh or £20 lakh), registration becomes compulsory. Section 23 generally exempts those making only exempted supplies from registration, regardless of turnover.

Anup Agarwal

1184 Points Posted on 31 January 2020

Definition of aggregate turnover excludes inward supply on which tax is payable under RCM, However into your case person is doing outward supply on which tax is being paid under RCM, hence registration is compulsory if turnover crosses limit specified. (10 lakh/ 20 Lakh ) as the case may be.