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GST Nil & Exempted

Suman Shinde (Accountant) (76 Points)

09 November 2019

Dear Sir/Mam
What is Difference between the Nil Rate & Exempted Rate Of GST..
Please Clarify..

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3 Replies

Surjeet Negi (947 Points)
Replied 09 November 2019

The basic difference between nil rated and exempt supply is that the tariff is higher than 0% in case of exempt supply. But there is no tax payable due to exemption notification. Whereas in case of NIL rated supply, the tariff is at NIL rate so there is no tax without the exemption notification.

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Pankaj Rawat (GST Practitioner) (55047 Points)
Replied 09 November 2019

In simple Words:

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

Exempted :It is the supply of goods and services that does not attract GST (Exempted by Notification)

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subhagan sreerangam (7040 Points)
Replied 09 November 2019

NIL-Rated Supplies that have a declared rate 0% GST for example Salt, Grain, Jaggery etc. Exempt Supplies are taxable but dot attract GST and for which ITC can't be claimed.