Exemption from GST Registration | Examples

exempted limit under GST-feature Image

In this topic, we will get to know that persons or businesses which have Exemption from GST Registration or which type of businesses are not needed to get registered under GST. In GST registration is based on what is the nature of their supply of goods and services.

The taxpayers who are exempted from GST Registration are:

  1. Agriculturists
  2. Persons falling into Exemption Limit
  3. Persons making supplies of goods and services which are Nil-Rated/ Exempt under the GST Act.
  4. Persons making supplies of goods and services which are not covered under the GST Act.
  5. That Supply of Goods or Services which are not covered by GST
  6. Supplies covered under reverse charge

Now we will explain these in the term with diagrams as follows: –

1. Agriculturists: –

A person who cultivate their land to make supplies of products/goods. Under GST these types of persons have Exemption from GST Registration.

agriculturist - Exemption from GST Registration | Examples
Agriculturists – Exemption from GST Registration

 

2. Persons falling into Exemption Limit: –

GST has some limit of Exemption from GST Registration for very small businesses like the local General store in a village and etc. Under GST expect some special states Govt. set a limit of aggregate turnover up to 20 Lacs and for special states limit reduced to 10 Lacs as shown under: –

exempted limit under GST - Exemption from GST Registration | Examples
The exempted limit under GST – Exemption from GST Registration

3. Persons making supplies of goods and services which are Nil-Rated/ Exempt under GST Act: –

Under GST some Goods/Services of daily needs have Exemption from GST Registration. The some of these areas following

  1. Health Care
  2. Education
  3. Services by a veterinary clinic in relation to health care of animals or birds
  4. The live animal such as Mammals, Birds, Insects
  5. The meat of bovine animals, fresh and chilled
  6. Onions, shallots, garlic, leeks and other alliaceous vegetables, fresh or chilled.
  7. Unprocessed foods:- Milk, Egg etc.

    basic needs - Exemption from GST Registration | Examples
    Daily Needs – Exemption from GST Registration

So, if you are dealing with this type of goods than you do not need to register under GST.

 

4. Persons making supplies of goods and services which are not covered under the GST Act: 

Under GST some Goods/Services are not covered. It means on these types of goods still old indirect structure is implemented and these type of businesses have Exemption from GST Registration. Some of these areas following

  1. Petroleum Products
  2. Electricity
  3. Alcohol for human consumption
  4. Tabasco etc.

So, if you are dealing with this type of goods than you do not need to register under GST.

5.That Supply of Goods or Services which are not covered under GST: –

There are some of the services that are not covered under the GST because these are cover under some other law or exempted. Some of these areas following

  1. Services by an employee.
  2. Duties of Public elected persons -PM, CM, MP or MLA.
  3. A person who is a member or director of a body.
  4. Services provided at the funeral.
  5. Services Provide by any Court.
  6. Sale of land and building.
  7. Actionable claims.

6.Supplies covered under reverse charge: –

There is provision under the act that if any person supplies taxable goods/services on which tax will be paid by the recipient then he does not need to get registered himself under GST.

 

 

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