Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

0 rated and nil rated supply

135 views

Save Share

Join Us Follow Us Add as Source

KRISHNA SHAH

27 Points Posted on 05 December 2020

Can anyone please tell me the basic difference between 0 rated supply and nil rated supply.

Replies (2)

Quick Summary

This discussion clarifies the distinction between 0 rated and nil rated supplies. A 0 rated supply, such as exports, is subject to VAT at 0% but is not exempt from VAT. Conversely, a nil rated supply is considered an exempt supply, meaning it's outside the scope of VAT altogether.