Comprehensive Guide : Who are exempted from GST registration?

Many businesses, including small traders and online retailers, want to know who are exempted from GST registration. If you think that your business does not fall into this category or there are certain classes of business that are not covered by GST then skip this article and move on to the next one. So let us find out what those classes of business are and how can you benefit from it.

GST registration is not mandatory for everyone

All service providers must register for the GST as a regular taxable business if their annual turnover reaches 20 lakh in a financial year. The yearly turnover cap is $10,000 for the special category states of Jammu and Kashmir, Himachal Pradesh, Uttarakhand, and the North Eastern States.

Agencies involved in the inter-state movement of goods and passengers.

Passengers arriving at Toronto’s Pearson International Airport are greeted by signs that read, “Welcome to Ontario”. But even as Ontario is Canada’s most populous province, the sign would be a bit misleading: Canada doesn’t have borders. It has provinces, and the provinces have borders. And while the 20-hour trip from Toronto to a U.S. airport might seem long, it’s not a problem at all.

Casual taxable persons.

A person who occasionally provides taxable products or services in a taxable territory without a fixed place of business is referred to as a casual taxable person (CTP). The person is free to provide goods or services as a principal, an agent, or in any other capacity so long as doing so benefits the company.

Non-resident taxable person

Any person who periodically engages in transactions involving the supply of goods or services, or both, whether as principal or agent or in any other role, but who does not A “non-resident taxable person” is someone who does not have an established place of business or habitation in India.

Input service distributors

To distribute the credit of central tax (CGST), state tax (SGST), union territory tax (UTGST), or integrated tax, an office of the supplier of goods or services, or both, that receives tax invoices toward receipt of input services and issues a prescribed document is known as an input service distributor (ISD).

The following persons are also exempted from GST registration

A person engaged solely in the business of supplying goods or services or both that are not subject to tax or are completely exempt from tax under the Central Goods and Service Tax Act of 2017 or the Integrated Goods and Services Tax Act of 2017 is exempt from obtaining a Goods and Service Tax – GST registration.

  1. A cultivator of land. The exemption only applies to the delivery of goods derived from cultivated land, though.
  2. Individual advocates, senior advocates included. 
  3. Particularly players and service providers for sponsorship

5 .The person making interstate supplies of taxable services who, in a fiscal year, has an aggregate turnover of less than INR 20 lakhs, or INR 10 lakhs in the case of special category states (as per notification no. 10/2017 – Integrated tax dated October 13, 2017), is considered to be in this category.

  1. The person who provides services and has an annual total revenue of less than INR 20 lakhs, or INR 10 lakhs in the case of special category states (as per Central Tax Notification No. 65/2017 dated November 15, 2017).

Persons making intra-state supplies of goods or services or both up to the prescribed threshold limit (INR 40 lakhs).

The threshold for GST registration for those involved in the supply of products has increased to Rs. 40 lakhs (save for those making intra-State supplies in the states of Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Puducherry, Sikkim, Telangana, Tripura, and Uttarakhand).

With the exception of ice cream vendors and other edible ice, chocolate included;

tobacco and substitutes for produced tobacco, pan masala,

those who must register in accordance with Section 24.

The GST registration threshold, on the other hand, is still set at 20 lakhs for service providers and 10 lakhs for the states that fall under the special category.


The decision to register for GST is no small one, so it’s vital to make an educated decision. That way, you’ll know for sure whether or not it’s worth your time and money. To learn more about the ins and outs of GST tax registration, be sure to check out our new guide. You can learn how to register for GST where you live or if your business qualifies to be exempt from GST registration. 

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