Section 23 specifies who is not required to obtain GST registration, even if they are carrying on business.

Who is Not Liable for GST Registration?

1. Persons Exclusively Supplying Exempt Goods or Services

If a person deals only in goods or services that are wholly exempt from GST, GST registration is not required.

Example:
A person provides only healthcare services that are exempt from GST. He is not required to take GST registration.

2. Persons Exclusively Engaged in Activities Not Treated as Supply

If a person's activities are neither considered a supply of goods nor a supply of services under GST, registration is not required.

Example:
Services provided by an employee to an employer in the course of employment are not treated as a supply. Therefore, the employee is not required to obtain GST registration.

3. Other Persons Notified by the Government

The Government may notify certain categories of persons who are exempt from GST registration requirements.

Example

Mr. A operates a business selling only exempt agricultural produce.

• Annual Turnover: ₹50 Lakhs

Even though the turnover exceeds the normal registration threshold, GST registration is not required because all supplies are exempt.

Section 22 vs Section 23

Important Note

Even if turnover exceeds ₹20 Lakhs or ₹40 Lakhs, a person is not required to register under GST if they are exclusively engaged in exempt supplies or non-supply activities covered under Section 23.

In One Line

Section 23 exempts certain persons from GST registration, mainly those dealing exclusively in exempt supplies or activities that are not treated as supply under GST.