Exempted Goods Under GST

Exempted Goods under GST are those goods which do not come under the boundaries or do not have liability of GST .Such exemptions on specified goods or services are imposed by the government.so these goods are know as exempted goods.

What Is An Exempt Supply Under Gst?

An exempt supply of goods and services includes, for example:

  • Which attracts nil rate of tax.
  • Which may be wholly exempt from tax under section 11.
  • Includes non-taxable supply.

In exempt supply of goods and services ITC cannot be claimed. so for instance (fresh fruits, vegetables, milk, bread etc).

Exempted services for instance (Reserve Bank of India services, Courier services etc).

  Let’s discuss the concepts

Zero Rated Supply :

  • Supplies made to any country other than India and supplies made to buyers located in Special Economic Zone.
  • ITC cannot be claimed for zero rated suppliers.

Nil Rated :

  • Nil rated and exempted goods are the same.
  • Goods and services on which 0 % GST is applicable.
  • For example : fresh fruits and vegetables, salt, natural honey, human blood etc
  • No ITC available.

Non Gst :

  • Goods and services which does not come under GST boundaries.
  • For example: liquor for human consumption, petroleum products, and natural gases.
  • No ITC available.

Exempted :

  • Supplies taxable at “Nil Rate” (0 % tax  )
  • Supplies which are exempt under GST.
  • For example:  services provided to RBI.

Do I Need Gst Registration If I Sell Only Exempted Goods?

If our turnover exceeds Rs.20 lakhs (Rs.10 lakh for special category states) then GST Registration is required.

Registration is required for selling exempted and taxable goods.

For example: registration is not required If you are selling only bread even if your turnover exceeds 20 lakh.

If you are selling bread and butter then you need to do the GST registration

Email your query at  onlinetaxfilingindia.com@gmail.com and know more about company registration. WhatsApp or Call us @ 7900 567 567, so that you can get your gst registration online done.

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