Latest Query & Reply

Firm making exempted goods HSN chapter 6 and turnover above 20 lakhs need GST registration. If not what about RCM on transportation.

Reply

Dear Sir, 

If a person is exclusively dealing in goods/services which are not liable to tax or are wholly exempt from tax, then he shall not be liable to take registration. The word ‘exclusive’ has its own importance here. The exemption with regard to registration shall only be applicable if one is dealing only in non-taxable or wholly exempt goods/services.

He is not required to take registration even if his turnover exceeds 20 lakh. Hence, basic exemption limit shall have no meaning under this provision.

However, if firm is liable to pay GST on RCM basis, registration is compulsory irrespective of the amount of turnover.