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Based on my understanding, i would like to explain the meaning of exempt supply under goods & services tax (gst), nil rated supply under gst, zero rated supply under gst and non gst outward supply with the help of definitions or explanations etc A nil rated supply refers to goods or services that are subject to gst but attract a 0% tax rate as specified in the rate notifications issued under section 9 of the central goods and services tax act, 2017 (cgst act). Given under the central goods and services tax act, 2017 and integrated goods and services tax act,.
Let us take a look at what distinguishes each of them. Conceptual distinction between nil rated and exempt supplies While the end result of all these supplies is the same, i.e
Gst is not applicable on the supply, but it is important to know the difference especially for the purpose of filing correct gst returns and accurate claim of itc.
Learn practical insights, examples, & compliance tips. Zero rated supplies are exports or supplies to special economic zones (sezs) taxed at 0% gst rate These supplies are not exempt by notification, but their tax rate is explicitly set at 0% under the gst rate schedule Supplies exempted from gst either fully or partially under section 11 of the cgst act or section 6 of the igst act
These supplies are exempt from gst, meaning no tax applies, whether at a 0% rate or any other rate These supplies are taxable under gst but have a 0% tax rate.
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