How to differentiate between nil rated supply and exempt supply?

Distinguishing between nil rated and exempt supplies can be tricky, especially when HSN or SAC codes show a 0% tax rate. The key lies in checking specific GST notifications. For goods, Notification No. 02/2017-Central Tax (Rate) and for services, Notification No. 12/2017-Central Tax (Rate) are crucial. If a supply falls under these notifications, it's considered exempt; otherwise, it's nil rated. HSN codes alone are not sufficient to make this distinction.