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(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.(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.
23.1 Analysis
The main criterion to remain out of the purview of registration is to exclusively engage in the supply of exempted goods or services or both. The term exclusive indicates engaging in only those supplies which are exempted. If a supplier is supplying both exempted and nonexempted goods and/or services, then this provision is not applicable and he is required to take registration under Section 22.
As per Section 1 (7) agriculturist means an individual or HUF who undertakes cultivation of land:
(a) By own labour or
(b) By the labour of family, or
(c) By servants on wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family
Thus, an agriculturist is not liable for registration only to the extent of supply of produce out of cultivation of land. If an agriculturist undertakes supplies which are not linked to the cultivation of land, he will fall within the provisions of Section 22 and may have to take registration in respect of such supplies.
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