Doubt of GSTR1 Filing

"Zero" rated supplies means supplies of goods and services or both to

a) Export of goods or services or both: or

b) Supplies to Specinal Economic Zone Developer or to a Special Economic Zone units.

The distinction in GSTR-1 Table 8 between these three categories matters for ITC calculation and aggregate turnover:

- Nil Rated (0% GST): Taxable supply where GST rate is 0%. Buyer cannot claim ITC from nil-rated purchases. Examples: food grains, salt.
- Exempt Supply: Supply notified as exempt under Section 11 of CGST Act. No GST applicable. ITC on inputs used for exempt supply must be reversed under Rule 42/43. Examples: fresh vegetables, healthcare services.
- Non-GST Supply: Outside the scope of GST entirely (not covered by the Act). Must be reported in GSTR-1 Table 8 for aggregate turnover but no GST applies. Examples: alcohol for human consumption, petroleum products, electricity.

Why it matters practically: If you have exempt supplies, you must reverse ITC proportionately (Rule 42/43). If you have nil-rated supplies, no ITC reversal is needed since nil-rated is still a taxable supply. The classification directly affects how much ITC you can retain.

For QRMP filers, this table is filed in the IFF only for B2B transactions, B2C nil/exempt/non-GST is reported in the quarterly GSTR-1.

This [GST filing blocked and ITC mismatch guide](https://taxgarden.in/blog/gst-filing-blocked-3-year-cutoff-bank-mismatch-2026) covers related GSTR-1 classification and ITC scenarios in detail.