GST-free (or zero-rated) transactions are supplies of goods and services that do not attract Goods and Services Tax (GST), allowing businesses to still claim input tax credits. Common examples include most basic foods, essential health and medical services, many educational courses, exports, and specific childcare or religious services.
These include bank transfers between accounts, stamp duty, depreciation and salary/wages. These are purchases/sales that have a 0% GST rate. Examples include, purchasing items from overseas (exports); purchasing items from within Australia that are not subject to GST, eg. fresh food, some education.
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.
Main GST-free products and services
List of exempted goods under GST in India:
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.
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.
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 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.
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.
Businesses must register for GST if their turnover exceeds ₹40 lakh, ₹20 lakh, or ₹10 lakh, depending on the supply and state/UT, and for specific categories like e-commerce sellers. GST simplifies the tax structure by eliminating cascading taxes and consolidating multiple indirect taxes into one.
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.
Social Welfare and Public Interest: Certain essential goods and services that are considered essential for the welfare of society may be exempted from GST. This includes items like basic food items (e.g., rice, wheat, milk), healthcare services, and education services.
Businesses that aren't registered for GST don't need to give regular (non-tax) invoices – but it's good practice to give one. By law, you must still give customers a receipt if the goods or services were over $75 or they ask for one.
GST-Free Items:
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.
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.
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.
Goods and services exempted from VAT are:
India's GST regime is undergoing a landmark transformation with the 56th GST Council meeting unveiling GST 2.0 - next-generation reforms simplifying tax slabs to 5%, 18%, and 40%. Effective from September 22, 2025, these reforms aim to ease compliance, boost consumption, and fuel economic growth.
The GST/HST break includes certain qualifying goods, such as:
How to Avoid GST on Overseas Purchases Legally