Registration

[Vishal Bhattad]

If a person is engaged only in supply of exempted goods or services and has a turnover exceeding 20 lacs then is he required to take registration? Does sec 24 overrule section 23 also ?

[KASTURI SETHI]

Query-wise reply is as under:-

1. No

2. Yes. If you fall under any of clauses of Section 24 of CGST Act (i toXii), you will have to obtain registration under GST Act irrespective of turnover i.e. from Re one. Thus we can say that Section 24 overrides Section 23.

[DR.MARIAPPAN GOVINDARAJAN]

Sethi Sir,

One doubt. Section 22 provides that registration is to be taken if the aggregate turnover exceeds ₹ 20 lakhs. The expression 'aggregate turnover' is defined as 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;

In this case the turnover of exempted supply exceeds ₹ 20 lakhs which should be included in the aggregate turnover. Then he is liable for registration.

Whether my interpretation is correct?

[KASTURI SETHI]

Respected Dr.Govindarajan Sir, . I am of the view that Section 23 is not subject to Section 22 of CGST Act, 2017. Hence Section 22 does not override Section 23.

[KASTURI SETHI]

Dr.Govindarajan Sir,

I further express my views as under:-

In view of language of Section 23, the definition of 'Aggregate turnover' contained in Section 22 is not applicable.

 

 

[Rajesh kumar]

IF PERSON ENGAGED IN ONLY EXEMPT SUPPLY OF GOODS OR SERVICES AS PER SECTION 23 NOT REQUIRED NOT TAKE REGISTRATION IRRESPECTIVE OF TURNOVER BUT SUBJECT TO SECTION 9(5) OF ECO

[Gaurav Gupta]

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AI Summary

Registration obligation: turnover rules include exempt supplies but categorical registration requirements can override exempt-only exemption.
Registration under GST involves a turnover-based threshold tied to a statutory definition of aggregate turnover that includes exempt supplies and excludes specified taxes and inward supplies on which tax is payable under reverse charge. A separate exemption applies to persons exclusively making exempt supplies, but categorical registration triggers require registration irrespective of turnover and will displace that exemption where applicable.