Various exempt supplies under gst.

Goods and service which are free from GST or no GST will be charged on this list. Everyday items are included in this list which are used by the common man. Under this category supplies do not attract GST but are taxable and ITC cannot be claimed. Example of exempted supplies are unpacked food grains,  Live Fish, Bread, fresh vegetables,  Fresh Milk & fruits etc.

There are certain Supplies which are exempted under the GST. Get help from the Profesional Utilities in all aspects link to the exemption.

Table Of Content

What is Exempt supplies under GST?

Exempt supplies under GST means set of the goods and services which are specifically exempted from implication of the GST. It also means that GST is not required to be charged by the supplier from the recipient and on particular supply GST is not applicable.

Feature of the exempted supply - 

There are many feature of the exempted supply as mentioned below - 

• Bill of supply will be issued instead of the tax invoice by the registered person.
• On the outward exempted supplies GST is not applicable.
• There is no applicable input tax credit for the inputs and/or input services used to provide exempt supplies, i.e. there is no input tax credit for exempt supplies.

Types of the exemption supplies 

• Conditional exemption
• Absolute Exemption
• Ex  - Exempted - Under this supplies GST ITC cannot be claimed, do not attract GST but are taxable.
• Partial Exemption - 

List of the exempted goods under GST

List of the exempted goods under GST are mentioned below - 

• Non-GST goods include fish, egg, fresh milk, etc.
• Components like human blood.
• Hearing aid manufacturing parts, chalks, slates, handloom, etc.
• Food items that are not put into branded containers like rice, hulled cereal grains, wheat, corn, etc.
• Fresh and dry vegetables like potatoes, onions, and other leguminous vegetables.
• Hearing aid manufacturing parts, chalks, slates, handloom, etc.
• Grapes, melons, ginger, garlic, unroasted coffee beans, green tea leaves that are not processed, and more.
• Unspun jute fibres, raw silk, khadi fibre, etc.

List of the exempted services under GST

There are exempted services under GST as mention  below - 

• Public transportation services, auto-rickshaws, metered cabs, metro, etc.
• Services offered by RBI, IRDAI, Central and State Government, NPS and more.
• Goods transportation where the charges are less than Rs.1500.
• Healthcare and educational services like mid-day meal catering, VET clinics, paramedics, etc. Ambulance and charity services also qualify for exemption under GST.
• Services like retail packing, pre-conditioning, waxing, etc.
• Government services and Foreign diplomatic
• Transportation of agricultural products and goods outside of India.
• Banking services like Basic Saving Bank Deposit (BSBD) account operable under the Pradhan Mantri Jan-Dhan Yojana (PMJDY).
• Labour supply for farms.
• Foreign diplomatic and government services.

Different types of the exempted supplies under GST

Zero Rated supplies - Taxable supplies in which GST Rate is 0%. GST is not charged but they are still taxable. These supplies includes special economic zone or export of goods and services or merchant exporter.

Exempt Services - These goods or services do not attract any tax and they are exempted. 

Non-GST - Those supplies which do not come under the preview of the GST. Such as alcohol for human consumotion.

Nil - Rated - Supplies which has zero percent GST. like salt.

GST Exemption

If turnover of any person doing business in india exceed specific turnover than GST Registration is compulsory.

• Engaging in  activities that are neither supply of services nor goods.
• Agriculturists
• Goods and services are supplied for non-GST and Non-Taxable.
• Supplies covered under Reverse Charges Mechanism.
• Goods and Services supplier for exempted supplies or nil rates supplies.

What is Non Taxable Supply?

Non - Taxable Supply means under IGST Act or CGST Act supply of the goods and services on which taxes are not levied.

List of the following items which are not covered under the scope of the GST.

• aviation turbine fuel
• high-speed diesel
• natural gas 
• motor spirit (commonly known as petrol)
• Petroleum crude

Following reasons certain goods are exempted - 

• Specific goods are fully exempted 
• As per recommendation of the GST Council.
• Certain goods which beneficial for the public are exempted.

Difference betwen Exempted supply vs zero rated supply

Conclusion 

These are the supplies on which GST is not levied and therefore do not attract any GST. Such supplies are generally provided for welfare purposes. The main objectives of exempted supplies include promoting social welfare, ensuring affordability, and supporting specific industries. While filing returns, it is important to understand different types of exempt supplies, such as non-taxable and zero-rated supplies, as part of the overall GST Process.

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What are supplies exempted from GST?

The supply of products and services that are exempted from GST are not subject to the goods and services tax and do not qualify for ITC.

What are the key highlights of the 40th GST Council meeting?

The 40th GST Council meeting announced a waiver of late fees for GSTR-3B filings and relief measures for taxpayers affected by COVID-19. Learn more at GST late fees waiver and highlights of the 40th GST Council.

Is a GST number required for exempted goods?

No, you are not required to register for GST if you only deal in 100% exempt supplies. Registration is not necessary to make interstate purchases.

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