Firm making exempted goods HSN chapter 6 and turnover above
20 lakhs need GST registration. If not what about RCM on transportation.
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
However, if firm is liable to pay GST on RCM basis,
registration is compulsory irrespective of the amount of turnover.