Section 23 of CGST Act 2017: Persons Not Liable for Registration

Provisions under Section 23 of the Central Goods and Services Tax (CGST) Act, 2017 relating to “Persons Not Liable for Registration”, are as under:

Section 23 of CGST Act 2017: Persons Not Liable for Registration (CHAPTER VI – REGISTRATION)

(1) The following persons shall not be liable to registration, namely:–

(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.

(2) The Government may, on the recommendations of the Council, by notification, specify the category of persons who may be exempted from obtaining registration under this Act. [Note 2]

(2) Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24, the Government may, on the recommendations of the Council, by notification, subject to such conditions and restrictions as may be specified therein, specify the category of persons who may be exempted from obtaining registration under this Act. [Note 2]

Amendments History:

1. CBEC has notified that Persons, making supplies of Goods and Services which are subject to GST on Reverse Charge basis u/s 9(3) of the CGST Act, i.e. where total tax is payable only by the recipient of goods and services, are Exempt from Registration under Section 23(2) of the CGST Act, 2017, applicable w.e.f. 22/06/2017, vide Notification 5/2017 Central Tax dt. 19/06/2017.

2. CBIC notifies substitution of subsection (2) deemed to have been substituted with effect from the 1st day of July, 2017, vide the Finance Act, 2023, followed with Central Tax Notification 28/2023 on commencement date of 01/10/2023.

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Note: The CGST Act 2017 has been notified vide GOI Notification dt. 12/04/2017, which has subsequently been amended through CGST (Extension to J&K) Act 2017, Finance Act 2018, CGST Amendment Act 2018, Finance Act 2019, Finance Act 2020, Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance 2020, Finance Act 2021, Finance Act 2022 including various Notifications issued by the Govt./ CBIC from time to time, relating to the commencement dates of various Sections/ Provisions in the respective CGST/ Amendment Acts, wherever required. Information on this page is a Section-wise compilation of the Amendments made by various Notifications issued by CBIC from time to time, with best possible efforts for accuracy. In any case, E&OE. For official/ updated information, please visit CBIC website.