Exempt supply and NIL rated supply

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What is the difference between exempt supply and supply at NIL rate.
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Exempt products are those that do not come under gst. Nil rated are those with 0% gst
As per SECTION 2(47) of the CGST Act 2017:

"exempt 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, or under Section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.

Exempt Supplies are those which are not Taxable under GST. For e.g. Puja Samagri, Services ( vide Notification No. 12/2017 CT (R) ).

Whereas, NIL RATED SUPPLY are those supplies which are Taxable under GST but are in the 0% Tax bracket. For example : Electricity.

Non Taxable Supplies are those supplies which are not in the purview of GST. For example : Alcoholic Liquor for Human Consumption, Petroleum Products.

Kindly note that, the definition of EXEMPT Supply given in SECTION 2(47) includes
1). Nil rated Supply
2). Non-Taxable Supplies.


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