As per Chapter 53 heading 5303 of the GST rate schedule, raw jute has been kept at the NIL rate slab. Thus, it is presumed that suppliers dealing only in raw jute are not required to register themselves under GST. But Jute Mills are asking their raw jute suppliers to mandatorily register themselves else their supplies would not be accepted. Please clarify whether raw jute suppliers are liable for registration?

Raw jute has been kept at NIL rate of GST i.e. there
would be no tax on raw jute. Therefore, as per Section 23 (1)
(a) of the CGST Act, 2017 the suppliers dealing only in raw jute
are not required to register.
Jute mills are not required to pay tax under Reverse Charge
Mechanism (RCM) as mentioned under Section 9(4) of the
CGST Act, 2017 because both the goods have been kept at
NIL rate of duty.
Similarly, Raw Silk has also been kept at NIL rate of GST i.e.
there would be no tax on raw silk. Therefore, the suppliers
dealing only in raw silk are also not required to register.