Difference between exempt and nil rated supplies

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This query is : Resolved

Ramalingeswara Rao MV (Querist)

03 January 2018 Could you please clarify the difference between exempt and nil rated supplies? we are unable to bifurcate these two. we know that all comes under exempt supplies.by exercising the powers under section 11(1), government has issued two notifications namely 2/2017 for exempting goods and 12/2017 for exempting services. As per these notifications all will come under exempt supplies. then for which items this nil rate applies. please clarify with one or two examples.

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

03 January 2018 Nil rated is the supply of goods and services that have 0% GST. Eg Grains, Jaggery

Exempted supply It is the supply of goods and services that does not attract GST and allows no claim on ITC Eg Fresh Fruits Milk & Curd.

Zero Rated Supplies include:
- supplies made to any country other than India; and
- supplies made to customers located in Special Economic Zones (SEZ) or SEZ Developers

Nil Rated Supplies- Rate of which is defined as "Nil" Exempt Supply- Wholly exempt from tax or non taxable under this Act. It includes Nil rated Supplies also.

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