Is GST registration required when supplies are entirely exempt

According to Section 23(1)(a) of the CGST Act, 2017, if any person is engaged exclusively in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under CGST Act or under the IGST Act, such person is not liable for registration under GST.

In this matter, we will also refer an advance ruling of West Bengal Advance Ruling Authority on the application of Time Tech Waste Solutions (P.) Ltd. 2019.

In this case, the applicant is stated to be providing conservancy/ solid waste management service to the Bally Municipal Corporation, which has been merged with the Howrah Municipal Corporation in terms of State Government Notification of the Municipal Affairs Department. The above services to the municipal corporation are exempt under Sl. No. 3 of notification no. 12/2017- central tax (rate) dated 28.06.2017. In this matter, it was held that since, the applicant’s turnover consists entirely of exempt supplies, it is not liable to registration under GST.

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