Notification on Exemption from Registration for Handicraft Suppliers

Scope: The notification exempts certain categories of persons from obtaining registration under the Integrated Goods and Services Tax Act, 2017. Categories of Exempted Persons: Persons making inter-State taxable supplies of handicraft goods as defined in notification No. 21/2018 -Central Tax (Rate), dated 26th July 2018. Persons making inter-State taxable supplies of specific products predominantly crafted by hand, even if machinery is partially used.

Products Covered: Leather articles, carved wood products, bamboo products, grass, leaf, and reed products, textiles, coir products, pottery, metalware, musical instruments, horn and bone products, conch shell crafts, bamboo and cane furniture, dolls and toys, and various other handicraft items.

Conditions: Aggregate value of supplies should not exceed the threshold for mandatory registration as per Section 22(1) of the Integrated Goods and Services Tax Act, 2017. Suppliers must obtain a Permanent Account Number (PAN) and generate e-way bills as per rule 138 of the Central Goods and Services Tax Rules, 2017.

Implementation: This notification supersedes the previous notification No. 8/2017 - Integrated Tax, dated 14th September 2017. This exemption aims to support and promote the handicraft sector by reducing compliance burden for small-scale artisans and craftsmen. (Gunjan Kumar Verma) Under Secretary to the Government of India