Handicraft Suppliers Exempted from Registration on Inter State Supplies upto Rs. 20 lakhs – E-way Registration Must

[Ref: Notification No. 8/2017 – Integrated Tax dated 14 September, 2017]

Granting exemption to a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration

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) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making inter-State 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.

2. The 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.

Explanation - For the purposes of this notification, the expressionhandicraft 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 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 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 bidriware

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

[F. No. 349/58/2017-GST(Pt.)]