Exemption from GST registration for supply of handicraft goods
No. CLE-HO/POL/GST/17-18
Sept. 20,2017
Members of the Council
Sub : Exemption from GST registration for supply of handicraft goods
Dear Member
According to Section 22 of Central Goods and Services Tax (CGST) Act, every supplier shall be liable to be registered under this Act in the State or Union territory, other than special category States, from where he makes a taxable supply of goods or services or both, if his aggregate turnover in a financial year exceeds twenty lakh rupees: Provided that where such person makes taxable supplies of goods or services or both from any of the special category States, he shall be liable to be registered if his aggregate turnover in a financial year exceeds ten lakh rupees.
However, Section 24 of the CGST Act specifies categories of persons who are required to be registered (irrespective of turnover) which include the following categories.
(i) persons making any inter-State taxable supply; (ii) casual taxable persons making taxable supply;
The Central Board of Excise and Customs has now issued the following Notifications
1) CGST Notification No. 32/2017 dated 15th September 2017 stating that casual taxable persons making taxable supplies of handicraft goods (including leather articles falling under 4201, 4202, 4203) and also Leather Footwear ( under 6403 and 6405) when made by the craftsmen predominantly by hand eventhough some machinery may also be used in the process are exempted from obtaining registration under the CGST Act, provided the aggregate value of such supplies to be computed on all India basis does not exceed twenty lakh rupees in a financial year and Provided further that the aggregate value of such supplies, to be computed on all India basis, does not excess an amount of ten lakh rupees, in case of Special Category States, other than the State of Jammu and Kashmir
“casual taxable person” means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business;
2) IGST Notification No. 8/2017 dated 14th September 2017 stating that persons making inter-state taxable supplies of handicraft goods (including leather articles falling under 4201, 4202, 4203) and also Leather Footwear (under 6403 and 6405) when made by the craftsmen predominantly by hand eventhough some machinery may also be used in the process, are exempted from obtaining registration under the CGST Act, provided the aggregate value of such supplies to be computed on all India basis does not exceed twenty lakh rupees in a financial year and Provided further that the aggregate value of such supplies, to be computed on all India basis, does not excess an amount of ten lakh rupees, in case of Special Category States, other than the State of Jammu and Kashmir
Members may please note the above.
Thanks and regards
R. Ramesh Kumar
Executive Director