GST Exempted Goods

What is Exempt Supply

1. Which attract nil rate of tax (0% tax) or

2. Supply exempted wholly or partly from CGST or IGST by way of notification amending section 11 of the CGST Act or section 6 of the IGST Act,

3. Including non-taxable supplies (eg alcoholic liquor intended for human consumption)

Type of Exemption

1. Full discount, exemption without any condition. For example, transmission or distribution of electricity by a power transmission or distribution utility, services by the Reserve Bank of India.

2. Conditional exemption, subject to certain conditions, e.g., a hotel, inn, guest house, club, or campsite, by whatever name called, residential or residential services, including the tariff of one unit of accommodation, Declared less than ₹ 1000/- per day.

3. Conditional or partial exemption, if any goods or services received by a registered person from an unregistered person, inter-state supplies to him are exempted from payment of tax under reverse charge, provided that the aggregate value of such supplies received by a registered person shall be all or received from all or any of the suppliers do not exceed ` 5000/- in a day.

Non-taxable supplies

The supply of goods or services which is not chargeable to tax under CGST and IGST Act is called non-taxable supply. A transaction must be a 'supply' as defined under the GST law to qualify as a non-taxable supply under GST.

Note - Supplies that are excluded from the purview of taxation under GST come under this definition. That is, alcoholic liquor intended for human consumption, articles listed in section 9(2) or Schedule III.

Also note that some items are not outside the purview of GST, which means that the GST rate for them has not been announced or notified yet:

1. high-speed diesel

2. natural gas and

3. petroleum crude

4. motor spirit (commonly known as petrol)

5. aviation turbine fuel

Complete list of Goods Exempt

Click here to view the complete List of Goods Exempt

Classification of Exemption

1. The exemption can be given to the supplier, For example, Services by Charitable Institutions, Services by Securities and Exchange Board of India.

2. Certain supplies are exempt from GST due to their nature and type. All the supplies notified will be eligible for exemption. Here, regardless of the supplier, discounts are allowed. For example services through a public facility, services through the sponsorship of sporting events.

The negative list under GST

1. Sale of land

2. Services by the employee to the employer in connection with the course/employment

3. Sale of completed buildings

4. Funeral, burial, cremation, or morgue services

5. Services by any Court or Tribunal

6. Actionable claims (other than lottery, betting, and gambling)

7. Duties performed by any person who holds any office in that capacity in pursuance of the provisions of the Constitution.

8. Functions performed by the MPs, MLAs, etc.

Disclaimer: This article is intended for general consumption only. The information in the article was accurate at the time of publication, but it is subject to change due to changes in government rules and regulations. The contents of the blog may not be copied unless prior permission is obtained.

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