Section 23 of GST - Persons not liable for registration Under GST: Rules and Format. Check complete details for GST Section 23, this section is provide all details for GST Persons not liable for registration. Detailed Analysis of GST Section 23 of GST Act 2017.Must Read – List of all sections of GST
Section 23 of GST - Persons not liable for registration Under GST (Goods & Service Tax)
- (a) any person engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act;
- (b) an agriculturist, to the extent of supply of produce out of cultivation of land.
|Section or Rule||Description|
|Section 2(7)||Definition of ‘agriculturist’|
|Section 2(47)||Definition of “exempt supply”|
|Section 25||Procedure for registration|
AnalysisSection 23 provides relaxation from the requirement of obtaining registration to two categories of persons
- (a) Agriculturist;
- (b) Persons engaged exclusively in the supply of exempted goods or services or both.
As per section 2(7), agriculturist means an individual or HUF who undertakes cultivation of land:
- (a) By own labour, or
- (b) By the labour of family, or
- (c) By servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family
Thus, an agriculturist is not liable for registration only to the extent of supply of produce out of cultivation of land. If an agriculturist undertakes supplies which are not linked to the cultivation of land, he will fall within the provisions of sections 22 and may have to take registration in respect of such supplies. It is important to consider the nature of activities undertaken by the agriculturist. If the process deviates from ‘cultivation’ it will travel outside the scope of this exclusion from registration. The exclusion states – to the extent of supply of ‘produce out of cultivation’ of land – any further processing of the primary produce from cultivation will continue not to avail this exclusion. Cultivation of land does not include pisciculture on inland water body or cattle rearing that graze the produce of land. The produce that emerge from land is ‘cultivation of land’. For example, harvesting paddy is cultivation but production of rice is not.