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Person engaged exclusively in the supply of exempt goods/services:
AIs NOT required to register (Sec 23(1)(a))
BMust register if turnover exceeds threshold
CMust register only if Sec 24 applies
DCan voluntarily register but cannot avail ITC on exempt outputs
Answer & Solution
Correct answer: A. Is NOT required to register (Sec 23(1)(a))
1. Sec 23(1)(a) — persons engaged in supplying goods/services wholly exempt from GST are NOT required to register.
2. Note: this is now an overriding provision (Sec 23 has been given effect over Sec 22 and 24 by FA 2023, w.r.e.f. 01.07.2017).
3. If such person also makes a taxable supply, Sec 22 threshold applies — at that point registration becomes a question.
_Source: ICAI BoS CA Final Paper 8, Ch 7 "Registration", §Sec 23(1)(a)_
Related questions
Section 25(4) — establishments of a registered person in different States or with separateSec 24 — persons compulsorily required to register (regardless of turnover) include:Aadhaar authentication for registration is governed by:Cancellation of registration by APPLICATION of the registered person (Sec 29(1)) — applicaThreshold for registration for a person supplying SERVICES (or mixed) in normal States:Special-category States for Sec 22 reduced thresholds are:GSTIN structure (15 characters): the first 2 digits represent:Aggregate turnover for threshold purposes per Sec 2(6) INCLUDES: