Threshold Limit

[Kaustubh Karandikar]

The following category of person shall be required to be registered even if their aggregate turnover is below specified exemption limit and are exempt from registration. 1) persons making any inter-State taxable supply of goods [In case of supply of services, person making inter-state supply of services is not required to register if his aggregate turnover is less than ₹ 20/10 lakhs] - Notification No. 10/2017-IT dated 13-10-2017. Since export of goods is treated as inter - state supply, does it mean that if a person is only exporting goods and his turnover is below ₹ 20 Lakh, still he need to register with GST?

[Rajagopalan Ranganathan]

Sir,

According to Section 7 (5) of IGST Act, 2017 "supply of goods or services or both, -

(a) when the supplier is located in India and the place of supply is outside India;

(b) to or by a Special Economic Zone developer or a Special Economic Zone unit; or

(c) in the taxable territory, not being an intra-State supply and not covered elsewhere in this section,

shall be treated to be a supply of goods or services or both in the course of inter-State trade or commerce.

Therefore an exporter has to mandatorily take registration Under GST Act as per provisions of Section 24 of CGST Act, 2017.

As per Section 24 of CGST Act persons making any inter-state supply shall be required to be registered under CGST Act, 2017. the exemption limit indicated in Section 22 (1) of CGST Act, 2017 is not applicable to inter-state supply.

[KASTURI SETHI]

I support the views of Sh.Ranganathan, Sir.

AI Summary

Inter-state supply registration: exporters of goods must obtain GST registration even if turnover is below the exemption threshold.
Export of goods to a place outside India is treated as an inter State supply, and persons making inter State supplies-including exporters and supplies to or by SEZ units or developers-must obtain GST registration; the aggregate turnover exemption for intra State suppliers is not applicable to inter State supplies.