Items not charged Goods and Services Tax (GST) typically include essential goods and services, such as fresh produce (fruits, vegetables), dairy products (milk, eggs), basic foods (rice, flour, salt), healthcare services, educational services, and residential property sales. Other common exemptions cover exports, certain financial services, and specific public transportation.
Key items exempted from GST:
Fresh fruits, fresh milk, curd, bread, etc. Exports and supplies made to SEZ units or SEZ developers, of both goods and services. Grains, salt, jaggery, etc. Alcohol used for human consumption, natural gas, petrol and its products, etc.
There are only minimal items which are not reportable for GST purposes. These include bank transfers between accounts, stamp duty, depreciation and salary/wages. These are purchases/sales that have a 0% GST rate.
Some of the examples of GST-exempted products are books, maps, plastic bangles, and certain notified handicraft goods. If you are listing exclusively GST-exempted products, you must choose the appropriate PTC for selling such GST-exempt goods. Go to the GST portal to identify products that are exempted from GST.
Office supplies, equipment, rental costs, and professional services are examples of expenses on which input tax can be claimed. Further, input tax cannot be claimed on the following expenses: private use, non-business entertainment, and motor vehicle expenses.
GST is a 10% tax added to most goods and services sold in Australia, but not everything in the food and beverage sector is treated equally. Some items are GST-free, while others are fully taxable, and understanding the difference can have a direct impact on your pricing, bookkeeping, and compliance.
Fresh milk, UHT milk, and all un-packaged or loose dairy products (like curd, lassi, buttermilk, and paneer) are exempt from GST (0%).
Common Examples of GST Exempt Transactions:
Financial services – Most banking services, interest payments, and insurance premiums. Residential rent – Rental income from residential properties. Donated goods and services – Items or services that are given away without payment.
By zero rating it is meant that the entire value chain of the supply is exempt from tax. This means that in case of zero rating, not only is the output exempt from payment of tax, there is no bar on taking/availing credit of taxes paid on the input side for making/providing the output supply.
These GST exemptions are aimed at making essential commodities affordable to the common ma,n but at the same time enable the businesses to benefit their respective communities without an extra tax burden.
Exempt supplies under GST include nil-rated supplies, supplies wholly or partially exempted by government notification, and non-taxable supplies like alcoholic liquor for human consumption. Exempt goods and services do not attract GST, and input tax credit (ITC) for such supplies cannot be claimed or utilized.
Certain goods and services are exempt from GST due to their essential nature. This exemption applies based on the type of supply, not the supplier. Example: Healthcare services, educational services, and public utility services (e.g., water supply) are exempt from GST.
Goods and services exempted from VAT are:
supply of goods or services or both which is not leviable to tax under the CGST or IGST Act. Examples could be transactions in money, supply of liquor or narcotic substances, specified 5 petroleum products: crude petroleum, petrol, diesel, aviation turbine fuel, and natural gas.
Fresh eggs are exempt from GST (0%) under Chapter 4, as they are classified as unprocessed food products. However, processed or powdered eggs may attract 5% GST, depending on their use and packaging.
What is the GST on honey in India? Unbranded honey is exempt (0%), while packaged and labeled honey is taxed at 5% GST.
Exports of goods or services or both together and supplies to Special Economic Zone (SEZ) units or developers are considered zero-rated under GST. Yes, one cannot claim ITC for exempt supplies as they do not attract GST, while one can claim refund of tax paid or unutilised ITC for zero-rated supplies.
Basic raw agricultural products, such as unroasted coffee beans or unprocessed tea leaves are exempt from GST (0% tax slab). Other forms like packaged, flavoured, or instant varieties attract a higher GST rate of 5%, 12%, or even 18% depending on their classification.
GST-Free Items:
Main GST-free products and services
List of exempted goods under GST in India:
Ineligible ITC: Cases Where Input Tax Credit under GST Cannot Be...