Valuation
Rajya Lakshmi (Management Trainee) (57 Points)
11 February 2017
In case of Exempt Supplies under GST, what is the difference between Nil rate Supplies and Zero percent supplies?
Rupesh Maheshwari
(ACA, Dip. IFR (ACCA))
(6166 Points)
Replied 11 February 2017
For a “zero-rated good,” the government doesn’t tax its sale, but allows credits for the value-added tax (VAT) paid on inputs. If a good or business is “exempt,” the government doesn’t tax the sale of the good, but producers cannot claim a credit for the VAT they pay on inputs to produce it.
Rajya Lakshmi
(Management Trainee)
(57 Points)
Replied 11 February 2017
There are three types of rates under GST
1. Exempt Supplies - Nil rate , Zero pecent supplies
2. Zero Rated Supplies - Supplies to and from SEZ.
I want to know the difference between those two mentioned within the Exempt Supply.
CAclubindia
