No More compulsion of GST Registration for those engaged in exempt supply; Even if RCM is applicable:

No More compulsion of GST Registration for those engaged in exempt supply; Even if RCM is applicable Budget 2023: GST Registration would not be mandatorily required for those persons who are exclusively engaged in the supply of exempted goods or services or outward supplies on which the Reverse charge mechanism (RCM) is applicable even if they receive certain inward supplies on which RCM is applicable. Sub-section (1) and sub-section (2) of section 23 of the CGST Act are being amended, with retrospective effect from 01^st July 2017, so as to provide that person for compulsory registration in terms of sub-section (1) of section and section 22 of the Act need not register if exempt under subsection (1) of section 23. Substitution of new section for section 23. 131. For section 23 of the Central Goods and Services Tax Act, the following section shall be substituted and shall be deemed to have been substituted with effect from the 1st day of July, 2017, namely: Persons not liable for registration. “23. Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24,– (a) the following persons shall not be liable to registration, namely:–– (i) 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, 2017; (ii) an agriculturist, to the extent of supply of produce out of cultivation of land; (b) 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.”.