Under the Goods and Services Tax (GST) regime in India, registration is a critical compliance requirement for businesses. However, not every individual or entity supplying goods or services is mandated to register. The law clearly identifies categories of persons not liable for GST registration, ensuring small and specific service providers are not burdened with unnecessary compliance. These include agriculturists (for agricultural produce), individuals making exempt or non-taxable supplies, and those whose turnover is below the prescribed threshold. Additionally, persons engaged exclusively in intra-state supplies of goods or services below the aggregate turnover limit (₹20 lakh for most states, ₹10 lakh for special category states) are also exempt.
According to Section 23 of the Central Goods and Services Tax (CGST) Act, 2017, “The following persons shall not be liable to registration”:
- Sub-section 1(a): Any person engaged exclusively in the business of supplying goods or services that are not liable to tax or are wholly exempt from tax under this Act.
- Sub-section 1(b): An agriculturist, to the extent of supply of produce out of cultivation of land.
Additionally, Rule 9 of the CGST Rules provides further clarification for exemptions based on threshold limits and special conditions for specific regions.
Understanding who does not need GST registration is essential for small business owners, local traders, and professionals offering exempt services such as healthcare, education, or religious activities. These exemptions help reduce the compliance burden on micro-entrepreneurs and ensure that only those contributing significantly to the tax base are included in the system. However, if such a person crosses the threshold or opts for voluntary registration, they must comply fully with GST rules thereafter.
🧠 Mnemonic to Remember: “G-S-T-F-R-E-E”
- G – Goods/Services Exempted (No GST applicable)
- S – Special Category States (₹10 lakh threshold)
- T – Threshold Limit not crossed
- F – Farming/Agriculturist excluded
- R – Religious and charitable services exempt
- E – Education and healthcare services not taxable
- E – Exclusively exempt supplies (Section 23(1)(a))
This mnemonic helps you easily recall who is GST-FREE under Indian tax law.
