Section 23 of CGST Act, 2017 : Section 23: Persons Not Liable For Registration

Explanation using Example

Imagine a local farmer, Mr. Sharma, who cultivates wheat on his farm. He sells his wheat produce directly to consumers and local shops. Since Mr. Sharma is an agriculturist and his income comes solely from the produce of his land, according to Section 23(1)(b) of The Central Goods and Services Tax Act, 2017, he is not required to register for GST. This is because his activities are classified under the exempt category as per the Act.

In another scenario, Ms. Roy runs a small bookstore and all the books she sells are educational materials, which are exempt from GST under the Act. As she deals exclusively in goods that are not liable to tax, based on Section 23(1)(a), Ms. Roy is not obligated to register for GST. This exemption allows her to focus on her business without the additional administrative task of managing GST filings.