plz define the difference between nil rated and exempted rated .
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Difference of nil rated and exempted rated
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the goods taxable at nil rated are taxable goods but the rare of tax is nil. the exempted goods are not taxable goods
nil rated supplies are those which have 'nil' rate.
exempted goods are those which are wholly exempt from tax. it includes nil rated goods.
exempted goods are those which are wholly exempt from tax. it includes nil rated goods.
nil rated goods are taxable with 0 percent rate
Zero Rated Supply- Exports and supplies to SEZ
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.
Based on the Economic criteria goods are mainly classified as Nil rate goods or exempted goods however both are of - 0- value
NIL rated goods will be slowly or drastically changed as per economic scenario to increase rates .
But Exempted goods rates cannot be brought under taxable rates since it is for social requirement of the society or weaker section or policy of importance
for example - cancer / TB eradication programme ( in medical ) infrastructure development for common usage /
such exemption will be for a long period based on international commitment or scenario
goods taxed at nil rated are taxable goods although nil rated
whereas exempt category of goods are exempt from the ambit of
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