From December 14, 2024, to February 15, 2025, Canada is implementing a temporary GST/HST relief on items like prepared foods (salads, sandwiches), restaurant meals, snacks (chips, candy), beer/wine, children's clothing/footwear, diapers, car seats, toys, puzzles, video game consoles, and Christmas trees.
Health & Life Insurance: All individual health and life insurance policies are now fully GST-free. Staple Foods & Dairy: Many pre-packaged and labelled staple foods, like UHT milk, paneer, roti, and paratha, are now tax-exempt. Medicines: Over 30 life-saving medicines have moved from 12% GST to nil.
Key items exempted from GST:
List of exempted goods under GST in India:
GST-Free Items:
How to Avoid GST on Overseas Purchases Legally
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%.
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 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.
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.
If my LEGO order will be shipped to Canada, will taxes be included in the final price? Yes, appropriate GST/HST, Quebec sales tax, British Columbia PST, Manitoba RST and Saskatchewan PST will be added based on the province to which your order is being shipped.
Goods and services exempted from VAT are:
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.
Temporary GST/HST relief will apply from December 14, 2024, to February 15, 2025. Eligible products that are ordered before December 14, 2024, but are only ready to ship on or after 00:00 Pacific Time December 14, 2024, will qualify for the tax relief, and no GST/HST will be collected.
What are the new changes in GST 2025? Starting September 22, 2025, GST in India will be simplified to primarily two rates: 5% and 18%, with a special 40% rate on luxury and sin goods like tobacco and high-end vehicles.
Unbranded and unpackaged food items such as cereals, pulses, and fresh vegetables are exempt from GST. In contrast, branded and packaged food products attract a 5% or 12% GST, depending on the item and branding status—impacting the applicable food GST rate.
Examples of GST-free foods
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.
Charging GST Correctly: A Breakdown of Your Sales
Barista-Made Drinks: You must charge 10% GST on all hot and cold drinks prepared by your staff. This includes every coffee, tea, hot chocolate, and chai you sell.
Subtracting GST from Price
To calculate how much GST was included in the price, divide the total price by 11 ($1000∕11=$90.91). To calculate the price without GST, divide the price by 1.1 ($1000∕1.1=$909.09).
Exempted Goods under GST
Components such as human blood. Manufacturing parts of hearing aids, such as handloom, chalks, slates, etc. Non-GST goods include egg, fish, fresh milk, etc.
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.