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Nil rated and Exempted supplies

Sreenivas Mamillapalli (3 Points)

06 July 2017

what is the exact difference between Nil rated supplies and Exempted supplies in GST?

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23 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (176622 Points)
Replied 06 July 2017

Exempt supply includes Nil rated (taxable at 0%) and non-Taxable supplies.

Section 2(42): Exempt Supplies: This has been defined to mean supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11.

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

No more diffrence in GST....

Difference only in previous Tax regimes like VAT.....

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 06 July 2017

Originally posted by : RAJA P M
	No more diffrence in GST.... Difference only in previous Tax regimes like VAT.....

These are different terms in GST.

CA Saloni (Manager-Accounts & GST Consultant) (5124 Points)
Replied 06 July 2017

Zero Rated Supply- Exports and supplies to SEZ

Nil Rated Supplies- Rate of which is defined as "Nil"

Exempt Supply- Wholly exempt from tax or non taxable under this Act. It includes Nil rated Supplies also.

2 Like

Sreenivas Mamillapalli (3 Points)
Replied 06 July 2017

If there is no difference in GST, then why in Table 8 of GSTR 1 return, details of nil rated, exempted and non Gst supplies details separately asked???

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RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

Originally posted by : saloni
	Originally posted by : RAJA P M No more diffrence in GST.... Difference only in previous Tax regimes like VAT..... These are different terms in GST.

/forum/regarding-registration--398087.asp

RAJA P M ("Do the Right Thing...!!!") (128091 Points)
Replied 06 July 2017

Originally posted by : saloni
	Zero Rated Supply- Exports and supplies to SEZ Nil Rated Supplies- Rate of which is defined as "Nil" Exempt Supply- Wholly exempt from tax or non taxable under this Act. It includes Nil rated Supplies also.

/forum/regarding-registration--398087.asp

Rupjyoti Gogoi (267 Points)
Replied 06 July 2017

Thanks

CA Bijay Shrestha (Never Give up....No matter what....) (858 Points)
Replied 06 July 2017

If fully exempted Dealer wants to register voluntarily and opts for Composition Levy, he has to pay tax on his turnover eveni if his all products are exempted. Also If he purchases any items from URD, he has to pay Tax on RCM basis.

In both the cases, Taxes paid by him becomes COST to him.

Which is beneficial for him - Normal Scheme OR Composition Scheme ?