Go AD-Free with CAclubindia Pro and Daily Mobile Updates. Subscribe Now!

difference between

CHIRAG AGRAWAL (9 Points)

14 July 2019

nil rated and exempted

Reply
Follow
Share

8 Replies

Pankaj Rawat (GST Practitioner) (55057 Points)
Replied 14 July 2019

Nil Rated It is the supply of goods and services that have 0% GST. Example: Grains, salt, jaggery etc.
Exempted is the supply of goods and services that does not attract GST and allows no claim on ITC. Example: Bread, fresh fruits, fresh milk and curd etc.

1 Like

Saket Mishra (in 12th class) (111 Points)
Replied 15 July 2019

NIL rated means supply is taxable but rate is 0,
whereas Exemptes supply includes the following:-
-Non taxable supply such aa petrol
-wholy exempted supply such as health care services,
-Zero rated eg supply to SEZ...

Sheetal Devaki (68 Points)
Replied 15 July 2019

IF YOUR TURNOVER 41 LAKHS WHICH INCULUDES ONLY NIL RATED OR EXEMPT SUPPLY THEN REGISTRATION UNDER GST REQUIRED ?

Akshay Jain (Tax Consultant) (1024 Points)
Replied 15 July 2019

Pankaj sir is correct. but there are some goods or services that attracts GST but exempted due to capital goods, etcif they are

CHIRAG AGRAWAL (9 Points)
Replied 15 July 2019

how can I know whether the concern good is exempted or nil rated?

debora M (BUSINESS DEVELOPMENT MANAGER) (1697 Points)
Replied 15 July 2019

Nil Rated

Goods or services on which GST rate of 0 % is applicable are called NIL rated goods or services. Such goods or services, on which GST rate of 0% is applicable, are listed in schedule 1 under GST rate schedule. Example of Nil rated supplies are salt, jaggery, cereals etc.

Input tax credit of inputs and / or input services used in providing supply attracting Nil rate is not available i.e. no input tax credit on Nil rated supplies.

Exempted Supply

Exempted supply means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11 of CGST Act or under section 6 of the IGST Act, and includes non taxable supply. Following points are to be noted for exempted supply:

There is no GST applicable on outward exempted supplies.
Input Tax credits of inputs and / or input services used in providing exempted supply is not available i.e. no input tax credit on exempted supplies.
A registered person supplying exempted goods or services or both shall issue ‘bill of supply’ instead of tax invoice.