Difference between exempt, nil rayed, zero rated supply

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karan kumar

karan kumar (Querist)
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10 July 2019 Dear Experts.
Pls interpret the difference between exempt, Nil Rayed, Zero Rated supply.

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CMA ALKESH PATEL

CMA ALKESH PATEL (Expert)
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10 July 2019 Zero Rated : Exports Supplies made to SEZ or SEZ Developers.
Nil Rated : Supplies that have a declared rate of 0% GST. Example: Salt, grains, jaggery etc.
Exempt : Supplies are taxable but do not attract GST and for which ITC cannot be claimed. Example: Fresh milk, Fresh fruits, Curd, Bread etc.

Non-GST : These supplies do not come under the purview of GST law.
Example: Alcohol for human consumption, Petrol etc.

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Hitendra Jain

Hitendra Jain (Expert)
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10 July 2019 In GST law supply is categories. Very First there is two category one is of Goods and another is of Services. Further there is another category is made one which is taxable and another is exempt. This second type of categorization is further classified in two category one is nature of supply which falls in specific schedule of the act whereby irrespective of nature, time or anything else with respect to transaction but either the supply shall be taxable at all or exempt at all. Supplies simultaneously further categories in slab of percentage wise tax rate. These percentage includes "NIL" as rate of percentage and also "Zero" as rate of percentage. In GST Law "Exempt Supply" is defined and whereby it includes "NIL" rate and "Non Taxable" supplies (refer section 2(47) of Central GST Act 2017 and section 2(4) of Union Territory GST Act 2017) similarly "Zero rated supply" is defined as if it is export of goods and / or services and supply made to SEZ developer or to SEZ (refer section 16(1) of Integrated GST Act 2017). Any supply which is otherwise taxable but if it is made in the course of export from India or to SEZ or SEZ Developer it became Zero Rated. Any supply which can fall under the definition of supply and taxable but also specified in schedule III of the Central GST Act 2017 it may exempt e. g. transfer of any taxable goods which is warehoused goods to any person before clearance for home consumption or Sale of Land as defined in paragraph 5 of schedule III of Central GST Act 2017. How, When and in which manner tax on a transaction of supply of goods and services was affected; to determine such detail GST Returns required to report separately the value of each type of transaction.

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