The Synthetic & Rayon Textiles Export Promotion Council

GST Registration Exemption to Handicraft Dealers on Inter-State Supply

Circular No. ES/ 260/2018-19                                                                                    October 25, 2018 

To: Members of the Council

Sub: GST Registration Exemption to Handicraft Dealers on Inter-State Supply

Dear Member,

CBIC has issued Notification Nos. 3/2018- Integrated Tax dated 22nd October, 2018 and 56/2018- Central Tax dated 23rd October, 2018 to supersede Notification No.8/2017 – Integrated Tax dated 14th September, 2017 and 32/2017- Central Tax dated 15th September, 2017 by granting exemption to a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration.

The Central Government, on the recommendations of the GST Council, and in supersession of the Notification Nos. 8/2017 – Integrated Tax, dated 14th September, 2017 and 32/2017- Central Tax dated 15th September, 2017 specifies the following categories of persons who shall be exempted from obtaining registration under the said Act: -

  1. Persons making inter-State taxable supplies of handicraft goods as defined in the “Explanation” in notification No. 21/2018 -Central Tax (Rate), dated 26th  July, 2018, and falling under the Chapter, Heading, Sub-heading or Tariff item specified in column (2) of the Table contained in the said notification and the Description specified in the corresponding entry in column (3) of the Table contained in the said notification;

                                        OR

  1. Persons making inter-State taxable supplies of the products mentioned in column (2) of the Table below and the Harmonised System of Nomenclature (HSN) code mentioned in the corresponding entry in column (3) of the said Table, when made by the craftsmen predominantly by hand even though some machinery may also be used in the process:-

Relevant extract of the Table is given here-below: -

Sl. No.

Products

HSN Code

10

Textiles hand printing

54

11

Zari thread

5605

12

Carpets, rugs and durries

57

13

Textiles hand embroidery

58

Provided that the aggregate value of such supplies, to be computed on all India basis, does not exceed the amount of aggregate turnover above which a supplier is liable to be registered in the State or Union territory in accordance with sub-section (1) of section 22 of the said Act, read with clause (iii) of the Explanation to that section.

Please note that persons making inter-State taxable supplies mentioned in the preceding paragraph shall be required to obtain a Permanent Account Number and generate an e-way bill in accordance with the provisions of rule 138 of the Central Goods and Services Tax Rules, 2017.

Members may kindly make a note of the above.

Thanking you,

Yours faithfully,

S.BALARAJU
EXECUTIVE DIRECTOR