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Difference between nil rate and 0%

Vivek soni (Student) (122 Points)

18 May 2018

Please help what is the difference between nil rate and 0% in gst or weather they are same

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CA Naveen Chand (Chartered Accountant) (12729 Points)
Replied 18 May 2018

1 Zero Rated Supplies include:
- supplies made to any country other than India; and
- supplies made to customers located in Special Economic Zones (SEZ) or SEZ Developers

2 NIL RATED It is the supply of goods and services that have 0% GST.
Example: Grains, salt, jaggery etc.

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Vinod Patel (Accountant ) (26 Points)
Replied 18 May 2018

if product are not cover under GST then use Nil and when product covered under GST but rate are 0 then you have to consider for 0 rate. ie. 5am switch has 18 GST but we are export switch and we have LUT so we will make bill with 0 rate, not nil rate.