GST exemption can describe an exempt supply or the absence of registration liability below a threshold, but these are different legal questions. An ordinary business below the applicable registration threshold does not apply for a general ‘GST exemption certificate’ on the GST portal. It should document turnover, supply type and exceptions, and register if section 22 or 24 requires it.
How this 2026 guide was prepared
The supplied draft was treated as a topic brief, not as legal authority. Outdated portal dates, overbroad thresholds, invented procedures and incorrect rate or format claims were corrected against official GST, CBIC, GST Council and India Code materials available on 2026-07-28.
Effective-date warning: GST rates, exemptions, portal screens and due dates can change. Confirm the live notification and return period before acting.
Three concepts that must not be mixed
An exempt supply attracts no GST under a notification; a nil-rated supply sits at a nil rate; a non-taxable supply is outside the levy. Exports and supplies to SEZ for authorised operations are zero-rated, which is a separate concept that can preserve refund or input-credit consequences.
Registration threshold is conditional
Section 22 starts with ₹20 lakh aggregate turnover, and ₹10 lakh in specified special-category states. Notification 10/2019 provides registration exemption up to ₹40 lakh for persons engaged exclusively in supplies of goods, subject to exclusions, state choices and conditions. Services do not inherit the ₹40 lakh figure.
Who may not need registration
A person engaged exclusively in wholly exempt or non-taxable supplies is covered by section 23. An agriculturist is excluded to the extent of supply of produce out of cultivation of land. Below-threshold persons may also be outside registration unless compulsory-registration rules apply.
Compulsory registration and exceptions
Section 24 lists cases where threshold relief may not operate, but later notifications create important exceptions for categories such as certain inter-state service suppliers and certain e-commerce suppliers. Apply the current provision and notification to the actual supply rather than repeating a blanket rule.
There is no ordinary certificate application
The source draft invents a portal workflow for a GST exemption certificate. GST law does not provide a general certificate for every below-threshold or exempt-supply business. Maintain turnover workings, invoices or bills of supply, exemption notifications and a written registration analysis; obtain sector-specific certificates only where the relevant exemption itself requires evidence.
Records and input tax credit
Exempt outward supplies can require reversal or restriction of common input tax credit. A person not registered cannot collect GST or issue a tax invoice. Turnover monitoring must include taxable, exempt, export and inter-state supplies on the PAN-wide statutory basis, excluding taxes and inward supplies liable to reverse charge as prescribed.
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Request GST supportFrequently asked questions
What is the GST exemption limit for services?
The usual section 22 threshold is ₹20 lakh, or ₹10 lakh in specified special-category states, subject to compulsory registration and notifications.
Is the goods threshold always ₹40 lakh?
No. The ₹40 lakh relief is notification-based and conditional.
Can I apply online for a GST exemption certificate?
There is no general GST exemption certificate application for an ordinary below-threshold business.
Are exports exempt supplies?
Exports are zero-rated, not ordinary exempt supplies.
Can an exempt business claim ITC?
ITC attributable to exempt supplies is generally unavailable or reversible, subject to the Act and rules.
Do hospitals and schools always make exempt supplies?
Only qualifying healthcare and education services within the precise notification entries are exempt.
Must below-threshold businesses keep records?
Yes. Records help prove turnover, supply classification and why registration or tax was not required.
