Non taxable supplies

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Shivani (Querist)
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10 April 2017 Dear Experts

CGST Act defines non taxable supplies as ones on which GST is not leviable.

Is it referring to petroleum and liquor for human consumption?

are these two the only goods which are considered non taxable supplies?

regards
shivani

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Rajesh Kumar

Rajesh Kumar (Expert)
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11 April 2017 Non taxable supplies means supplies on which tax is not being levied. It can be alcohol for human consumption (outside legislative competence), or Petroleum not notified undet GST yet. It can also be goods and services on which zero rate of tax is there, like fruits or vegetables. It can also be supplies on which specific person is taking exemption like a person taking exemption based on turnover being less than 20 lakhs. Thus non taxable supply refers to all supplies on which tax is not being paid for whatever reason.

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Shivani

Shivani (Querist)
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11 April 2017 Dear Sir

I somehow respectfully beg to differ with you.

What you are saying is that non-taxable supplies includes exempt supplies.
But in CGST Act definition of exempt supply says that it included nil rated supplies, supplies exempted under section 11 and non-taxable supplies.

So obviously scope of exempt supply is wider and it includes non taxable supplies and NOT the vice versa.

So only thing left on which tax cannot be levied other than exempt supplies are petroleum and liquor.

Please have a look at my point and advise sir.

regards

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Rajesh Kumar

Rajesh Kumar (Expert)
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11 April 2017 Wow, I thought you are a student asking questions just out of curiosity. Nevertheless Your views are correct. The conclusion you are drawing from definition of exempt supply is correct.... I have to be very careful in answering your questions. Well done.

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