Notification No. 03/2018 – IGST Handicraft Exemption

Important Keyword: Notification 03/2018 IGST, handicraft GST exemption India, inter-State supply registration exemption, GST artisan relief 2018, IGST handicraft rules, Section 23(2) CGST exemption, HSN handicraft GST India,

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[F. No. 349/58/2017-GST(Pt.)]
Government of India
Ministry of Finance
Department of Revenue
Central Board of Indirect Taxes and Customs

New Delhi, the 22^nd October, 2018

Notification No. 03/2018 – Integrated Tax: Seeks to supersede Notification No.8/2017-Integrated Tax, dated 14.09.2017

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 section 20 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) read with sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) , hereinafter referred to as the “said Act”, the Central Government, on the recommendations of the Council, and in supersession of the notification of the Government of India in the Ministry of Finance, Department of Revenue 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, except as respects things done or omitted to be done before such supersession, hereby specifies the following categories of persons (hereinafter referred to as „such persons‟) who shall be exempted from obtaining registration under the said Act:

• such persons making inter-State taxable supplies of handicraft goods as defined in the “Explanation” in notification No. 21/2018 -Central Tax (Rate), dated the 26^th July, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 695 (E), dated the 26^th 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
• such 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:-

Table

Sl.	Products	HSN Code
No.
(1)	(2)	(3)
1.	Leather articles (including bags, purses, saddlery, harness,	4201, 4202, 4203
	garments)
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 fibre 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	6802
	animals, writing sets, ashtray, candle stand)
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	8306
	type used for decoration of metals of Chapters 73 and 74
22.	Metal bidriware	8306
23.	Musical instruments	92
24.	Horn and bone products	96
25.	Conch shell crafts	96
26.	Bamboo furniture, cane/Rattan furniture	94
27.	Dolls and toys	9503
28.	Folk paintings, madhubani, patchitra, Rajasthani miniature	97

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.

2. Such 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.

(Gunjan Kumar Verma)
Under Secretary to the
Government of India

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✅ Conclusion

Notification No. 03/2018 – Integrated Tax provides GST registration exemption to handicraft suppliers making inter-State supplies, subject to turnover limits.

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More Information: https://taxinformation.cbic.gov.in/

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