Turnover exceeding limit

Legal Provisions:

As per Section 22 of  CGST Act, Every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds the threshold limit.

Meaning of Aggregate Turnover as per Section 2(6) of CGST Act,  “aggregate turnover” means the aggregate value of all taxable supplies (excluding the value of inward supplies on which tax is payable by a person on reverse charge basis), exempt supplies, exports of goods or services or both and inter-State supplies of persons having the same Permanent Account Number, to be computed on all India basis but excludes central tax, State tax, Union territory tax, integrated tax and cess;

Conclusion:

Thus as per the above provisions Exempted supply is used to calculate aggregate turnover, but liability to register arises only if person is making taxable supply. Thus if you are making 100% exempted supply, then irrespective of turnover you are not required to obtain GST registration.

Further, the same has been clarified by the department through FAQs.

Not required, only show exempted supply for the month relevant to return period