After the Introduction of GST, there has been various rates distributed to different products and services in India. These were called the Slab rates where each products or services were distributed into these rates 5%, 8%, 12%, 28% and some would come under 0%. While these rates charged the supply of goods and services while there are few which were exempted from GST. Before we list them let’s see what is Exempt Supply and exemption from GST.
Meaning of Exempt Supply
Exempt Supply means when a supply attracts nil rate of tax which means it does not attract GST.
Exempt supply also happens when the output supplies (i.e. the final product or service)has no tax while the input supplies (i.e. the process of making a product or service) are taxed and there is no ITC claimed in it.
Exemption from GST
The Central and the State Government has the authority to grant the exemption from GST. This exemption is given and decided by the GST Council Meeting. Exemption from goods and services can be only a part of it or as a whole. The interest of the people should be taken into consideration while deciding about any exemption made.
The exemption can be allotted in two ways i.e.
- Conditional Exception–Is where there is a condition for every exemption made. It depends on the registered person to bring it up or not.
- Unconditional Exemption – Is where there is no condition for every consumption made. It’s also called as absolute condition which is necessary to be done. When it comes to a part of the tax and a whole tax, both of them are unconditionally exempted and the registered person doesn’t have a choice to collect and pay the tax.
(In both the situations a registered person is a person registered under GST and comes under ‘Section 25’. It doesn’t have to be an individual but can also be a business)
Now let’s see at the exempted list of goods and services under GST in India.
Few list of Goods Exempted from GST
- Live animals such as sheep, goats, mules, ducks, etc
- Live birds and insects
- The meat of horse, poultry animals, etc. which are chilled or frozen
- Edible meat or pig fat kept frozen
- Dried or smoked meats
- Live fish
- Fresh or chilled fishes
- Milk, either fresh or pasteurized, and cream
- Curd, Lassi and Butter Milk
- Natural honey
- Plants with roots or bulbs
- Vegetables which are frozen, chilled, dried, or sliced (carrots, radishes, onions, etc.)
- Coconuts and nuts (peeled off or with the skin)
- Fruits which are fresh or diced like grapes, bananas, and various other berries
- Coffee beans
- Seeds like coriander, cumin, etc.
- Various types of flour, oats, and cereal
- Various types of beans and oil seeds
- Betel leaves
- Bread and papad without consumption
- Salt and drinking water
- Kajal and plastic bangles
- Electric energy
- Items needed for Puja
- Slate pancils and chalk sticks
- Earthern pots
- Raw materials like wool and silk
- Silk waste
- Khadi yarn and jute fiber
- Few list of Services Exempted from GST
- Services from the Agricultural Sector like
- Renting and warehousing
- Machinery and equipment’s used for agricultural purposes etc.
- Services from the Transportation departments like on road, water, air etc.
- Services provided by the Government like the RBI (Reserve Bank of India) or Life insurance provided by the Army etc.
- Services provided by the Judiciary department like which type of business entity and the expected turnover
- Services provided by the Educational department like transportation or providing meals etc.
- Services by the Medical Department provided by clinics etc.
- Services provided by Sports Areas
- Services provided by Religious Function’s
- Services provided by Journalists
- Services provided by hotel or lodging areas
- Funeral services
- Any services provided by the Government
These goods and services which are exempted from GST are listed briefly which means there are much more than these examples given above.
Given above were a few list of goods and services which are exempted from GST. The above goods and services might change and become chargeable later, these changes or revisions are made in the GST Council Meeting in India.
Want to know more about chargeable and exempted GST then look forward with this GST COURSE