Items that typically do not include GST include basic unprocessed foods (fresh fruits, vegetables, milk, bread), most medical/health services, education courses, child care, and essential services like water and sewerage. Other exempt items include residential rent, financial services, and exported goods.
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.
List of exempted goods under GST in India:
GST-Free Items:
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.
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.
From September 22, 2025, fresh and pasteurised milk remain fully exempt from GST. Pre-packaged items such as UHT milk, paneer, and curd are also exempt, benefiting consumers with zero tax on these products. However, dairy products like butter, ghee, cheese, and similar items attract a reduced GST rate of 5%.
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.
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.
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.
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.
You can claim a credit for any goods and services tax (GST) included in the price you pay for things you use in your business. This is called an input tax credit, or a GST credit.
The GST exemption essentially allows the earmarking of transfers, made during lifetime or at death, that either skip a generation or are made in trust for multiple generations.
The GST reforms lower taxes on electronic goods like mobile phones, refrigerators, air conditioners, TVs, and washing machines. This makes them more affordable and encourages production. This blog explores how GST 2.0 impacts consumer durables and what it means for buyers.
Beverages containing milk GST reduced from 12% to 5% Ice cream – GST reduced from 18% to 5% Milk cans – GST reduced from 12% to 5%
The GST rate on ghee is 12%, regardless of packaging or brand. The GST on desi ghee is also 12%, same as branded ghee. The HSN code is 0405, which includes butter and ghee.
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.
Key items exempted from GST:
Prepared foods and snacks: Vegetable trays, pre-made meals, salads, sandwiches, chips, candy, granola bars, etc. Dining: Restaurant meals (dine-in, takeout, or delivery). Beverages: Beer, wine, cider, and sake.
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.
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.