Notification No. 32/2017 – Central Tax Explained

Want to File ITR, GST Returns & Pvt. Ltd. Registration

Notification No. 32/2017 – Central Tax: Seeks to granting exemption to a casual taxable person making taxable supplies of handicraft goods from the requirement to obtain registration.

GST: [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

G.S.R. (E).—In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby specifies the casual taxable persons making taxable supplies of handicraft goods as the category of persons exempted from obtaining registration under the aforesaid Act:

Provided that the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of twenty lakh rupees in a financial year:

Provided further that the aggregate value of such supplies, to be computed on all India basis, does not exceed an amount of ten lakh rupees in case of Special Category States, other than the State of Jammu and Kashmir.

The casual taxable persons mentioned in the preceding paragraph shall 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.

The above exemption shall be available to such persons who are making inter-State taxable supplies of handicraft goods and are availing the benefit of notification No. 8/2017 – Integrated Tax dated the 14^th September 2017 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 1156(E), dated the 14^th September 2017.

Explanation - For the purposes of this notification, the expression “handicraft goods” means the products mentioned in column (2) of the Table below and the Harmonized 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: -

Table

Sl No.	Products	HSN Code
(1)	(2)	(3)
1.	Leather articles (including bags, purses, saddlery, harness, garments)	4201, 4202, 4203
2.	Carved wood products (including boxes, inlay work, cases, casks)	4415, 4416
3.	Carved wood products (including table and kitchenware)	4419
4.	Carved wood products	4420

5.	Wood turning and lacquer ware	4421
6.	Bamboo products [decorative and utility items]	46
7.	Grass, leaf and reed and fiber products, mats, pouches, wallets	4601, 4602
8.	Paper Mache articles	4823
9.	Textile (handloom products)	including 50, 58, 62, 63
10.	Textiles hand printing	50, 52, 54
11.	Zari thread	5605
12.	Carpet, rugs and durries	57
13.	Textiles hand embroidery	58
14.	Theatre costumes	61, 62, 63
15.	Coir products (including mats, mattresses)	5705, 9404
16.	Leather footwear	6403, 6405
17.	Carved stone products (including statues, statuettes, figures of animals, writing sets, ashtray, candle stand)	6802
18.	Stones inlay work	68
19.	Pottery and clay products, including terracotta	6901, 6909, 6911, 6912, 6913, 6914
20.	Metal table and kitchen ware (copper, brass ware)	7418
21.	Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of chapters 73 and 74	8306
22.	Metal barware	8306
23.	Musical instruments	92
24.	Horn and bone products	96
25.	Conch shell crafts	96
26.	Bamboo furniture, cane/Rattan furniture
27.	Dolls and toys	9503
28.	Folk paintings, Madhubani, patchitra, Rajasthani miniature	97

(Dr. Sree Parvathy. S.L.)
Under Secretary to the
Government of India

📚 Frequently Asked Questions (FAQs): Notification No. 32/2017 – Central Tax

Q1: What is Notification 32/2017 in GST?

It provides GST registration exemption to handicraft sellers.
It allows small artisans to operate without registration if turnover is within limits.

Q2: Who is a casual taxable person?

A person who occasionally supplies goods in another state.
Like participating in exhibitions or fairs.

Q3: What is the turnover limit for exemption?

₹20 lakh (₹10 lakh for special states).
Beyond this, GST registration is mandatory.

Q4: Is GST completely not applicable here?

No, only registration exemption is given.
Other compliance like e-way bill still applies.

Q5: What are handicraft goods?

Goods made mainly by hand.
Includes textiles, pottery, wooden items, etc.

Q6: Can I sell inter-state without GST registration?

Yes, if covered under this notification.
But conditions must be fulfilled.

Q7: Is PAN mandatory?

Yes, PAN is required.
Even if registration is not needed.

Q8: Is e-way bill required?

Yes, it is compulsory.
Goods movement must be tracked.

Q9: What happens if turnover exceeds limit?

GST registration becomes mandatory.
Compliance rules will fully apply.

Q10: Is this benefit for businesses or individuals?

Mainly for individuals and small sellers.
Large businesses are not covered.

Q11: Can I opt for GST voluntarily?

Yes, voluntary registration is allowed.
Even if exemption applies.

Q12: What is IGST Notification 8/2017?

It supports inter-state exemption.
Works along with this notification.

Q13: Is this notification still relevant?

Yes, especially for small artisans.
It continues to support traditional sectors.

Q14: Should I take professional help?

If unsure about eligibility, yes.
Many prefer structured guidance:
https://finodha.in/gst-compliance/

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