Items not reportable for Goods and Services Tax (GST) generally include non-taxable, exempted, or out-of-scope supplies, such as basic foods, specific medical/educational services, financial services, and bank transfers. These items are excluded from the GST system, meaning no GST is charged, and they are typically not included in the GST section of a business activity statement (BAS).
These GST categories are used for items that are excluded from the GST system and therefore not reported on the BAS in the GST section. There are only minimal items which are not reportable for GST purposes. These include bank transfers between accounts, stamp duty, depreciation and salary/wages.
List of exempted goods under GST in India:
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.
GST-Free Items:
The GST/HST break includes certain qualifying goods, such as:
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.
The GST Council, a constitutional body, oversees the GST regime. They make key decisions on tax rates, exemptions, and policies. Furthermore, the CGST Act and IGST Act provide the legal foundation for GST implementation.
Customers do not pay GST on goods and services that are GST‑free such as basic food, many medical and health services, some education courses, childcare, certain medical aids, and exports.
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.
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.
“Zero-rated” means subject to the GST/HST at 0%. The supply of basic groceries, which includes most food and beverages marketed for human consumption, is zero-rated.
Excluding GST from GST-free sales
Most basic foods. Some education courses, course materials and related excursions or field trips. Some medical, health and care services. Some medicines.
Exemption categories vary widely by field, but common types include legal/employment (like executive, administrative, professional roles exempt from overtime), tax (for individuals like dependents, or organizations like charities), and research ethics (for studies like educational practices or benign behavioral interventions that require less oversight). Other examples are property tax exemptions for unoccupied or repair-focused properties, and personal tax exemptions, now mostly handled via standard deductions.
📝 Overview of Schedule – Nil Rated (0% GST)
These typically consist of essential commodities like fresh fruits, vegetables, grains, salt, and educational materials. By assigning a zero tax rate, the government ensures these basic items remain affordable for all, supporting low-income groups and public welfare.
Zero-rated supplies are supplies of property and services that are taxable at the rate of 0%. This means there is no GST/HST charged on these supplies, but GST/HST registrants may be eligible to claim ITCs for the GST/HST paid or payable on property and services acquired to provide these supplies.
Common BAS Excluded items include wages, super, bank transfers, owner drawings, income tax payments, fines, donations, and certain government charges. Use “BAS Excluded” in Xero for genuinely out-of-scope items, and use GST or GST-free codes for reportable sales and purchases.
cooking ingredients, such as flour, sugar and baking mixes that don't contain any taxable ingredients. dry preparations marketed for the purpose of flavouring milk. fats and oils marketed for culinary purposes. unflavoured milk, cream, cheese and eggs.
Zero-rated goods are taxed at a 0% VAT rate, helping reduce costs for both consumers and manufacturers. Essential items like basic foods, sanitary products, and exports often fall into this category, making them more affordable and widely accessible, especially for lower-income households.
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.