Transactions not subject to GST generally include non-taxable, exempt, and out-of-scope supplies. Key exclusions are alcohol for human consumption, petroleum products, electricity, and real estate (land/completed buildings). Also exempt are basic necessities like fresh foods, health/education services, financial services, and certain government services.
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.
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.
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.
The GST/HST break includes certain qualifying goods, such as:
Under Section 269ST, any person or business cannot receive ₹2 lakh or more in cash from a single person in a single day or a single transaction. ✔ Example: If a business sells goods worth ₹2,50,000, the buyer must pay via cheque, bank transfer, UPI, or credit card. Cash payment is not allowed.
Ineligible ITC: Cases Where Input Tax Credit under GST Cannot Be...
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.
fees you pay that are associated with your bank like ATM fees, monthly account fees, or interest on your loans and credit cards do not include GST. Why? Because most bank fees are input-taxed.
GST is leviable only if aggregate turnover is more than 20 lacs. (Rs. 10 lacs in 11 special category States). For computing aggregate supplies turnover of all supplies made by you would be added.
GST-Free Items:
Only services that carry a fee attract GST. Regular deposits, withdrawals, and interest are exempt. 18% GST is charged on service fees for RTGS, NEFT, IMPS, etc. If no fee is charged, no GST applies.
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.
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.
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.
Can I sell on Meesho without a GST number? Yes, you can sell on Meesho without a GST number for certain exempt categories. However, for most product categories, a GSTIN is mandatory as per government regulations. We recommend checking the specific requirements for your product type.
Food and Agricultural Products
Fresh fruits and vegetables, for instance, do not attract any tax. Similarly, unprocessed grains like wheat and rice are GST-free. Other exempted items include: Fresh milk.
Sales that do not include GST in their price are known as GST-free sales. In contrast, sales that have GST included in their price are known as 'taxable sales'. Examples of items that are GST-free include: basic food, such as fruits, vegetables, meat, fish and eggs.
There are two types of expenses that may be reimbursed to the supplier under GST: Incidental expenses incurred by the supplier in the course of supply. This may be in the form of commission, packing, travelling expenses, etc., and forms a part of the value of supply.
Section 269ST limits cash receipts to Rs. 2 lakh or more in a single day from a single person. Any cash payment or receipt exceeding this limit is prohibited.
What is the Maximum ITC that can be utilised to pay GST liability? From 1st January 2021, certain taxpayers cannot utilise the ITC balance available in the electronic credit ledger to discharge more than 99% of the tax liability for a tax period. It means at least 1% of tax liability must be paid by cash.
With the recent changes in the Indian Income Tax Act, it's now possible to pay zero tax on a salary of up to Rs. 7 lakhs. To pay zero tax on a 7 lakh salary using the old tax regime, maximize deductions: Claim Tax Rebate under Section 87A.