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Section 23 of the CGST Act, 2017

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GST›CGST Act, 2017›Chapter VI, Registration

At a glance

Entitlement and conditions

23(1)(a)A person exclusively supplying goods or services not liable to tax or wholly exempt under this Act or the Integrated Goods and Services Tax Act is not liable to registration.
23(1)(b)An agriculturist is not liable to registration to the extent of produce supplied from cultivation of land.

Procedure, powers and definitions

23(2)Overriding sections 22(1) and 24, the Government may on Council recommendation notify exempt registration categories, subject to specified conditions and restrictions.
23(1)The law does not settle what sub-section (1) displaces beyond its stated registration exclusions; it lacks the express overriding words used in sub-section (2).

Section 23 removes registration liability for exclusive non-taxable or wholly exempt business and for an agriculturist’s cultivation produce. It is an exception to section 22. The notification power expressly overrides sections 22(1) and 24 and permits conditions and restrictions. The section commenced on 22 June 2017; the substituted notification power takes effect retrospectively from 1 July 2017.^[1]

Quick facts

Section 23, CGST Act, 2017

Persons not liable for registration

Provision
Act	Central Goods and Services Tax Act, 2017
Chapter	VI, Registration
Section title	Persons not liable for registration
Amendments
Last amendment	1 July 2017: substituted sub-section (2), adding the words overriding sub-section (1) of section 22 and section 24 and the words "subject to such conditions and restrictions as may be specified therein" (s.140 of The Finance Act 2023 (No. 8 of 2023))
Amendments	1 footnote in the CBIC text (table)
Related provisions
Rules	Rule 8 of the CGST Rules, 2017
Sections	2, 11, 22, 24
Structure 23(1)(a)Exclusively non-taxable or wholly exempt supplies 23(1)(b)An agriculturist 23(2)Persons exempted by notification the opening words of 23(2)What sub-section (2) overrides
Source
Law text	CBIC tax information portal, served on 17 September 2026^[1]
Questions reviewed	Prashant Prakash, 22 September 2026

Text

The text below is the section as served by the CBIC tax information portal on 17 September 2026, with the portal's own amendment footnote markers (shown as small numerals before a bracket) and its footnotes.^[1] The Act as published in the Gazette of India is the legal source.

Section 23, verbatim (show)

Section 23

* Section 23. Persons not liable for registration.-

(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.

¹[(2) Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24, 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.]

* Enforced w.e.f. 22nd June, 2017.

1. Substituted (w.e.f. 1st July, 2017) by s. 140 of The Finance Act 2023 (No. 8 of 2023) for "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.".

Questions to answer on the file

Questions a reviewer answers from the engagement file, grouped by the part of the section they come from. They describe what the section asks; they do not decide it.

Scope the section as a whole

Questions to answer on the file1 question

On what footing is relief from registration claimed for the person?

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Exclusively non-taxable or wholly exempt supplies 23(1)(a)

Questions to answer on the file4 questions

Is the person's business one of supplying goods or services or both that are not liable to tax or are wholly exempt from tax?
Is every supply the person makes one that is not liable to tax under this Act?
Is every supply the person makes wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act?
Does the person make any supply in the course of business besides those?

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An agriculturist 23(1)(b)

Questions to answer on the file4 questions

Does the person undertake cultivation of land?
By whose labour is that cultivation carried on: by own labour, by the labour of family, 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?
Is the person an individual or a Hindu Undivided Family?
Is the supply a supply of produce out of that cultivation of land?

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Persons exempted by notification 23(2)

Questions to answer on the file4 questions

Is a notification exempting a category of persons from obtaining registration relied on for the person?
Does the person fall within the category of persons that notification specifies?
Have the conditions and restrictions specified in that notification been satisfied?
Does the period fall within the period for which that notification is in force?

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What sub-section (2) overrides the opening words of 23(2)

Questions to answer on the file2 questions

Is the person otherwise liable to be registered under sub-section (1) of section 22 or under section 24?
Under which provision does that liability arise: sub-section (1) of section 22, section 24 or sub-section (1) of section 22 and section 24?

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Amendment history

The CBIC text carries 1 footnote. The table gives each in the source's own terms. Effective dates are as the footnotes state them.^[1]

Amendments to section 23 as footnoted in the CBIC text
Note	Change	Instrument	Effective from	Retrospective?
1	substituted sub-section (2), adding the words overriding sub-section (1) of section 22 and section 24 and the words "subject to such conditions and restrictions as may be specified therein"	s.140 of The Finance Act 2023 (No. 8 of 2023)^[2]	01.07.2017	retrospective — a 2023 Act given effect from 2017, so the substituted wording governs every period of the Act's life and no period split arises

Provisions connected to Section 23
Provision	Connection	Words that tie them
Section 22	this provision exception in Section 22	23(1) "The following persons shall not be liable to registration"
Section 22, Section 24	Section 22 sub-section (1) and Section 24 overridden by 23(2)	23(2) "Notwithstanding anything to the contrary contained in sub-section (1) of section 22 or section 24"
Section 2	23(1)(a) defined by Section 2 clause (47)	"wholly exempt from tax under this Act or under the Integrated Goods and Services Tax Act"
Section 2	23(1)(a) defined by Section 2 clause (108)	"not liable to tax", read against the definition of a taxable supply
Section 2	23(1)(b) defined by Section 2 clause (7)	"an agriculturist"
Section 11	23(1) requires Section 11 and the exemption notifications under it	"wholly exempt from tax under this Act"

Circulars and notifications

Circulars and notifications in the CBIC repository that cite this section, newest first, by number, date and subject. A listing here does not say what an instrument decides; read the instrument.

Circulars (4)

Number	Date	Subject
Circular No. 247/04/2025-GST	14 February 2025	Clarification regarding GST rates & classification (goods) based on the recommendations of the GST Council in its 55th meeting held on 21st December, 2024, at Jaisalmer.
Circular No. 157/13/2021-GST	20 July 2021	Clarification regarding extension of limitation under GST Law in terms of Hon'ble Supreme Court's Order dated 27.04.2021.
Corrigendum dated 5 Nov 2018 (Corrigendum to Circular No. 57/31/2018-GST)	5 November 2018	Corrigendum to Circular No. 57/31/2018-GST
Circular No. 57/31/2018-GST	4 September 2018	Scope of Principal-agent relationship in the context of Schedule I of the CGST Act.

Notifications (22)

Number	Date	Subject
Notification No. 24/2024-Central Tax	9 October 2024	Seeks to amend Notification No. 5/2017-Central Tax dated 19.06.2017 made under this section
Notification No. 37/2023-Central Tax	4 August 2023	Seeks to notify special procedure to be followed by the electronic commerce operators in respect of supplies of goods through them by unregistered persons.
Notification No. 34/2023-Central Tax	31 July 2023	Seeks to waive the requirement of mandatory registration under section 24(ix) of CGST Act for person supplying goods through ECOs, subject to certain conditions. made under this section
Notification No. 15/2022-Central Tax	13 July 2022	Seeks to amend notification No. 10/2019- Central Tax made under this section
Notification No. 03/2022-Union Territory Tax	13 July 2022	Seeks to amend notification No. 02/2019- Union Territory Tax made under this section
Notification No. 03/2022-Central Tax	31 March 2022	Seeks to amend notification no. 10/2019-Central Tax to implement special composition scheme for Brick Kilns, as recommended by 45 GSTC made under this section
Notification No. 01/2022-Union Territory Tax	31 March 2022	Seeks to amend notification no. 02/2019-Union Territory Tax to implement special composition scheme for Brick Kilns, as recommended by 45 GSTCSeeks to amend notification no. 02/2019-Union Territory Tax to implement special composition scheme for Brick Kilns, as recommended by 45 GSTC made under this section
Notification No. 10/2019-Central Tax	7 March 2019	To give exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakhs. amended by a later instrument made under this section
Notification No. 02/2019-Union Territory Tax	7 March 2019	To give exemption from registration for any person engaged in exclusive supply of goods and whose aggregate turnover in the financial year does not exceed Rs 40 lakhs. amended by a later instrument made under this section
Notification No. 06/2019-Central Tax	29 January 2019	Seeks to amend notification No. 65/2017-Central Tax dated 15.11.2017 in view of bringing into effect the amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts. made under this section
Notification No. 02/2019-Integrated Tax	29 January 2019	Seeks to amend notification No. 7/2017-Integrated Tax dated 14.09.2017 to align with the amended Annexure to Rule 138(14) of the CGST Rules, 2017. made under this section
Notification No. 03/2019-Integrated Tax	29 January 2019	Seeks to amend notification No. 10/2017-Integrated Tax dated 13.10.2017 in view of bringing into effect the amendments (to align Special Category States with the explanation in section 22 of CGST Act, 2017) in the GST Acts made under this section
Notification No. 56/2018-Central Tax	23 October 2018	Seeks to supersede Notification No. 32/2017-Central Tax, dated 15.09.2017. made under this section
Notification No. 03/2018-Integrated Tax	22 October 2018	Seeks to supersede Notification No.8/2017-Integrated Tax, dated 14.09.2017 made under this section
Notification No. 65/2017-Central Tax	15 November 2017	Seeks to exempt suppliers of services through an e-commerce platform from obtaining compulsory registration amended by a later instrument made under this section
Notification No. 38/2017-Central Tax	13 October 2017	Seeks to amend notification no. 32/2017-CT dated 15.09.2017 so as to add certain items to the list of "handicrafts goods" made under this section
Notification No. 09/2017-Integrated Tax	13 October 2017	Seeks to amend notification no. 8/2017-IT dated 14.09.2017 so as to add certain items to the list of "handicrafts goods" made under this section
Notification No. 10/2017-Integrated Tax	13 October 2017	Seeks to exempt persons making inter-State supplies of taxable services from registration under section 23(2) amended by a later instrument made under this section
Notification No. 32/2017-Central Tax	15 September 2017	Seeks to granting exemption to a casual taxable person making taxable supplies of handicraft goods from the requirement to obtain registration. superseded by a later instrument made under this section
Notification No. 07/2017-Integrated Tax	14 September 2017	Granting exemption from registration to job-workers making inter-State supply of services to a registered person from the requirement of obtaining registration amended by a later instrument made under this section
Notification No. 08/2017-Integrated Tax	14 September 2017	Granting exemption to a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration superseded by a later instrument made under this section
Notification No. 05/2017-Central Tax	19 June 2017	Seeks to exempt persons only engaged in making taxable supplies, total tax on which is liable to be paid on reverse charge basis amended by a later instrument made under this section

Unsettled questions

The words of section 23 do not answer this question. Where one decides a matter on the file, the answer depends on the position taken on it.

Sub-section (1) carries no non obstante clause, section 24 overrides only sub-section (1) of section 22, and sub-section (2) of this section names both — so the Act says what a notification may displace and never says what sub-section (1) displaces.

See also

Section 22 of the CGST Act, 2017: persons liable for registration
Section 24 of the CGST Act, 2017: compulsory registration in certain cases
Section 11 of the CGST Act, 2017: power to grant exemption from tax

References

Central Board of Indirect Taxes and Customs. "Section 23. Persons not liable for registration". Central Goods and Services Tax Act, 2017, CBIC tax information portal, with amendment footnotes 1 to 1. Retrieved 17 September 2026.
The Finance Act, 2023. Cited in CBIC footnote 1.

External links

CGST Act, 2017, Section 23 on the CBIC tax information portal