New
February 25, 2023
By
Harshini

Exemptions Under GST – Goods

Goods and Services Tax (GST) is a comprehensive tax system that has been implemented in India to replace all indirect taxes. Under GST, there are certain goods that are exempted from tax. In this article, we will discuss some of the frequently asked questions about Exemptions under GST – Goods.

What are the goods that are exempted from GST?

There are certain goods that are exempted from GST. These goods include:

  • Unprocessed agriculture produce such as wheat, rice, etc.
  • Milk, eggs, fresh fruits and vegetables, meat, and fish
  • Books, newspapers, and journals
  • Public transportation services such as buses, trains, and metro
  • Medical services and medicines
  • Education services and educational institutions

Do all goods attract GST?

No, not all goods attract GST. Only taxable goods, that is, goods that are not exempted from GST attract GST.

What is the GST rate for exempted goods?

Exempted goods do not attract any GST. Hence, the GST rate for exempted goods is zero.

Who can claim exemption from GST on goods?

Exemption from GST on goods can be claimed by the following:

  • Small businesses with a turnover of up to Rs. 20 lakhs
  • Businesses in special category states with a turnover of up to Rs. 10 lakhs
  • Businesses dealing in exempted goods

What is the procedure for claiming exemption from GST on goods?

The procedure for claiming exemption from GST on goods is as follows:

  1. The supplier of the exempted goods should mention “Exempt Supply” on the invoice.
  2. The recipient of the exempted goods should not claim any input tax credit on such goods.
  3. The recipient of the exempted goods should not include the value of such goods in his turnover while filing GST returns.

Conclusion

Exemptions under GST – Goods are an important aspect of the GST system in India. It is mandatory for all businesses to understand the exemptions and comply with the rules to avoid any legal issues.

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