Certain goods and services are kept under nil or 0% GST rate to benefit the masses. The following infographic will tell you what items are exemptions under GST.
An agriculturist is a person who supplies the products out of his cultivation land. They will be given exemptions from GST Registration. Agro-inputs like fertilizers, seeds, irrigation (electricity is required), machinery and all other agricultural services are also exempted under GST regime.
Persons falling in threshold exemptions limit
A business entity with an annual turnover less than Rs. 20 lakh is given exemptions from GST registration. But there are some special category states (Arunachal Pradesh, Assam, Jammu and Kashmir, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh and Uttarakhand) where this threshold limit is Rs. 10 lakh.
Must check: GST is not easy, but appeals to investors
Persons making Nil-Rated/ Exempt supplies
These are the persons who are engaged in the business of supplying common items which are in the exemptions list of GST. Some of them are mentioned below :
- All unprocessed food like rice, wheat, bread, milk, vegetables, cereals, eggs, meat, fish, salt etc.
- Train travel by local and sleeper classes
- Healthcare (but not medicines)
- Hotels, lodges with room rent less than Rs 1,000
- Kid’s colouring /drawing books
- Bindis, sindoor, bangles, etc
Also check: GST Rate Finder App
Activities that are neither Supply of Goods nor Services
- Services by an employee.
- Services by any Court or Tribunal.
- Functions and duties of –
- MPs, MLAs, Members of Panchayats, Municipalities and other local authorities;
- Person holding any Constitutional Post;
- Person as a Chairperson or a Member or a Director in a body.
- Funeral Services.
- Sale of land and building.
- Actionable claims (other than lottery, betting, and gambling).
Other special cases
- Supply to Canteen Stores Department (CSD) (Owned by Ministry of Defence)= CSD will enjoy 50% concession on applicable GST (no concession on Compensation Cess) paid on the notified goods or services or both received by them.
- Sales by CSD to Unit Run Canteens/final consumer and sales by Unit Run Canteens to final consumer are exempted from GST
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