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Gst on wheat

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Sajal Gupta

53 Points Posted on 14 May 2022

is gst on wheat nil rated or exempted??
what's diffrence between nil rated and exempted supplies in layman terms??

Replies (5)

Quick Summary

This discussion clarifies the GST status of wheat. Unbranded or loose wheat is generally exempt or nil-rated, meaning no GST is charged. Branded wheat, however, is typically taxed at 5%. The key difference lies in Input Tax Credit (ITC) availability: nil-rated supplies allow ITC, while exempt supplies do not, though both result in zero tax payable.

Kev Men

486 Points Posted on 14 May 2022

The difference is that in Nil rated items, the rate is 0%. Hence tax is 0.
In exempted items, there is no rate of tax due to exemption notification.
Basically the net result is the same in layman terms.

Unbranded wheat is Nil rated, branded wheat is 5%.

Subhankar Mishra

36 Points Posted on 14 May 2022

As per HSN 1001 Wheat is Exempt

Both Nil rated and Exempt mean that the government cannot levy tax on the same

however in the case of nil rated supply you cab claim ITC for the same

and in case of Zero rated supply you cannot claim any Credit for the same.

prasad Nilugal

GST Practitioner & Accounts

8998 Points Posted on 14 May 2022

Wheat ( other than those put up in unit container and bearing a registered brand name ) is exempt supply .Vide notification no 2/2017 CT rate 28/6/2017 .
Exempt or Nil rated supply means certain Goods or services are kept Nil rated or exempted in the public Interest , by way of Notification by the GOVT on the recommendation of the GST council .