{"id":33692,"date":"2024-11-06T13:30:34","date_gmt":"2024-11-06T08:00:34","guid":{"rendered":"https:\/\/piceapp.com\/blogs\/?p=33692"},"modified":"2024-11-13T14:22:48","modified_gmt":"2024-11-13T08:52:48","slug":"difference-between-nil-rated-exempted-zero-rated-and-non-gst-supplies","status":"publish","type":"post","link":"https:\/\/piceapp.com\/blogs\/difference-between-nil-rated-exempted-zero-rated-and-non-gst-supplies\/","title":{"rendered":"Understanding Non-GST, Nil-rated, Zero Rated & Exempt Supplies"},"content":{"rendered":"\n
Under the GST law, various types of non-taxable supplies co-exist<\/a> and often create confusion among consumers. Although the end result of supplies like nil-rated, zero-rated, exempt and non-GST supplies are the same, i.e., no applicable GST, you should still know the fundamental difference to properly file GST returns.<\/p>\n\n\n\n To help you understand better, we have explained here the basic difference between nil-rated, exempted, zero-rated and non-GST supplies<\/strong> in simple terms.<\/p>\n\n\n\n These are the supplies that do not come under the GST regime. Nevertheless, these products or services can still attract other forms of taxes based on the jurisdiction<\/a> of their place of supply. Some common examples of non-GST supplies include alcohol for human consumption, petrol, diesel, electricity, etc.<\/p>\n\n\n\n For nil-rated supplies, the government levies a zero rate of tax. Suppliers are not eligible to claim input tax credit on these supplies. Everyday items like grains, cereals, jaggery, milk and vegetables are some examples of nil-rated supplies.<\/p>\n\n\n\n Under this category, you find items that are used in everyday life. As these are essential commodities or services, no GST is levied on such supplies. Consequently, the supplier won\u2019t be able to claim any ITC for the related transactions.<\/p>\n\n\n\n Some GST-exempt supplies include education services, public transport, residential renting and food items like bread, curd, etc.<\/p>\n\n\n\n Overseas supplies and the ones that are delivered to Special Economic Zones (SEZs), come under zero-rated supplies. Although no tax rates are specified for them, still the supplier can claim ITC against them.<\/p>\n\n\n\n \ud83d\udca1 If you want to pay your GST with Credit Card, then download Pice Business Payment App<\/a>. Pice is the one stop app for all paying all your business expenses.<\/p>\n\n\n\n If certain conditions and protocols favour the supplier, they can claim refund of the input tax credit paid to procure the materials that were used to create the end supply. For claiming the refund, either of the two following options can be followed:<\/p>\n\n\n\nNon-GST Supplies<\/strong><\/h2>\n\n\n\n
Nil-Rated Supplies<\/strong><\/h2>\n\n\n\n
Exempt Supplies<\/strong><\/h2>\n\n\n\n
Zero-Rated Supplies<\/strong><\/h2>\n\n\n\n

Refund Process for Zero-Rated Supplies<\/strong><\/h3>\n\n\n\n