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The Central Government exempts casual taxable persons making taxable supplies of handicraft goods from the requirement to obtain registration under the Central Goods and Services Tax Act, 2017. This exemption applies when the aggregate value of supplies does not exceed twenty lakh rupees in a financial year on an all India basis. For Special Category States other than Jammu and Kashmir, the aggregate value threshold is ten lakh rupees. Eligible persons must obtain a Permanent Account Number and generate an e-way bill under the Central Goods and Services Tax Rules, 2017. The exemption also applies to persons making inter-State taxable supplies of handicraft goods who avail the benefit of notification No. 8/2017 – Integrated Tax.
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[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]
Government of India Ministry of Finance Department of Revenue Central Board of Excise and Customs
Notification No. 32/2017 – Central Tax
New Delhi, the $15^{\text{th}}$ September, 2017
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 $14^{\text{th}}$ 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 $14^{\text{th}}$ 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 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 | [unclear in source] |
| 27. | Dolls and toys | 9503 |
| 28. | Folk paintings, madhubani, patchitra, Rajasthani miniature | 97 |
[F. No. 349/58/2017-GST(Pt.)]
(Dr.Sreeparvathy.S.L.) Under Secretary to the Government of India
