Exempted goods, generally free from sales tax or VAT, usually include essential items for daily life, such as groceries (fresh food, bread, milk), prescription medicines, certain medical devices, and, in some regions, clothing, textbooks, and agricultural products. These exemptions vary by jurisdiction, with some states also exempting manufacturing machinery or specific services.
Exempted goods include essential food items, raw materials, certain healthcare products, agricultural goods, jewelry like plastic bangles, and printed books, among others.
Items exempt from customs duty vary by country but generally include personal effects (used household goods, clothing), specific relief/aid goods (disaster relief, medical supplies), educational/cultural items, samples for trade shows, and sometimes low-value gifts or specific categories like certain machinery or basic groceries, often with conditions or value limits, like the U.S. $800 traveler exemption or de minimis rules for small packages (though these can change).
Zero-rated supplies
Certain goods and services are exempt from VAT. This means that they are not subject to VAT and therefore, do not incur the standard 20% VAT charge. Exempt goods and services include insurance, education, and health services.
It is the supply of goods and services that does not attract GST and allows no claim on ITC. Example: Bread, fresh fruits, fresh milk and curd etc. Services Tax Act, and includes non-taxable supply.
Goods and services exempted from VAT are:
Important Notifications Regarding GST Exemptions
This notification exempts about 149 items from GST. Some of the key items include electricity, salt, fresh fruits, and passenger baggage.
GST-Free Items:
Malaysia offers import duty exemptions to: Essential items like medical equipment, educational materials, renewable energy products, etc. Machinery, raw materials, and components for industries like electronics, textiles, automotive, and manufacturing sector.
India's annual exports of the commodities that have been exempted from the reciprocal tariffs stood at over $1 billion - this includes fruits and nuts, processed foods, spices, tea and coffee, essential oils, and vegetable and edible roots.
Exempt VAT means that certain goods and services are not subject to Value Added Tax. The seller will not charge their customers any VAT, but they also won't be able to reclaim any VAT paid on costs related to these goods or services.
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.
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/HST break includes certain qualifying goods, such as:
Goods and services tax (GST) applies to most goods and services sold in Australia. Find out how to register and what it means for your business.
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.
Most states exempt rent, payments to health care providers, and prescription drugs. Some also exempt clothing, tampons, diapers, non-prescription drugs, and certain other items.
List of exempted goods under GST in India:
Exempt supply includes the provision of financial services, sale and lease of residential properties and local supply of investment precious metals.