\n\nTypes of goods<\/strong><\/p>\n<\/td>\n\nExamples<\/strong><\/p>\n<\/td>\n<\/tr>\n\n\nFish<\/strong><\/p>\n<\/td>\n\nFresh or frozen<\/p>\n<\/td>\n<\/tr>\n
\n\nMeat<\/strong><\/p>\n<\/td>\n\nFresh or frozen<\/p>\n<\/td>\n<\/tr>\n
\n\nNatural products<\/strong><\/p>\n<\/td>\n\nHoney, milk, cheese, eggs, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nVegetables<\/strong><\/p>\n<\/td>\n\nOnions, potatoes, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nFruits<\/strong><\/p>\n<\/td>\n\nApples, bananas, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nSeeds<\/strong><\/p>\n<\/td>\n\nOil seeds, flower seeds, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nSugar <\/strong><\/p>\n<\/td>\n\nJaggery, sugar, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nBaked goods<\/strong><\/p>\n<\/td>\n\nPizza base, bread, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nWater<\/strong><\/p>\n<\/td>\n\nTender coconut water, mineral water, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nDry fruits<\/strong><\/p>\n<\/td>\n\nWalnuts, cashew nuts, almonds, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nLive animals<\/strong><\/p>\n<\/td>\n\nCows, sheep, goat, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nLive trees & plants<\/strong><\/p>\n<\/td>\n\nRoots, flowers, foliage, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nGrains<\/strong><\/p>\n<\/td>\n\nWheat, oats, rice, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nTea, coffee & spices<\/strong><\/p>\n<\/td>\n\nTurmeric, tea leaves, coffee beans, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nMilling industry products<\/strong><\/p>\n<\/td>\n\nAll kinds of flour<\/p>\n<\/td>\n<\/tr>\n
\n\nFabrics<\/strong><\/p>\n<\/td>\n\nRaw silk, khadi etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nPottery<\/strong><\/p>\n<\/td>\n\nClay, lamps, earthen pots, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nHand tools<\/strong><\/p>\n<\/td>\n\nHammer, spade, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nDrugs & pharmaceuticals<\/strong><\/p>\n<\/td>\n\nHuman blood, contraceptive, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nFertilizers<\/strong><\/p>\n<\/td>\n\nOrganic manure<\/p>\n<\/td>\n<\/tr>\n
\n\nWaste<\/strong><\/p>\n<\/td>\n\nMunicipal waste, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nBeauty products<\/strong><\/p>\n<\/td>\n\nKajal, bindi, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nOrnaments<\/strong><\/p>\n<\/td>\n\nPlastic & glass bangles, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nPrinted items<\/strong><\/p>\n<\/td>\n\nNewspapers, books, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nNewsprint <\/strong><\/p>\n<\/td>\n\nEnvelopes, judicial stamp papers, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nFossil fuels<\/strong><\/p>\n<\/td>\n\nElectrical energy<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
Exemptions under GST on services<\/h2>\n\n\n\n Here is a list of the services which enjoy GST exemption:<\/em><\/strong><\/p>\n\n\n\n\n\n\n\nTypes of services<\/strong><\/p>\n<\/td>\n\nExamples <\/strong><\/p>\n<\/td>\n<\/tr>\n\n\nGovernment services<\/strong><\/p>\n<\/td>\n\n· Cultivation<\/p>\n
· Harvesting<\/p>\n
· Warehouse related activities<\/p>\n
· Renting or lending agricultural machinery, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nAgricultural services<\/strong><\/p>\n<\/td>\n\n· Portal services<\/p>\n
· Transportation services for people or goods<\/p>\n
· Services by the foreign diplomat in India<\/p>\n
· RBI’s services in India, etc.<\/p>\n
<\/p>\n<\/td>\n<\/tr>\n
\n\nJudicial services<\/strong><\/p>\n<\/td>\n\nServices offered by:<\/p>\n
· Arbitral tribunal<\/p>\n
· Partnership firm of advocates<\/p>\n
· Senior advocates<\/p>\n
· Individual or business entities whose turnover is Rs. 40 lakhs, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nEducational services<\/strong><\/p>\n<\/td>\n\n· Transportation of faculty or students<\/p>\n
· Mid-day meal<\/p>\n
· Examination services<\/p>\n
· Services offered by IIMs, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nMedical services<\/strong><\/p>\n<\/td>\n\nServices offered by:<\/p>\n
· Ambulance<\/p>\n
· Medical professionals<\/p>\n
· Veterinary doctors, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nOrganizational services<\/strong><\/p>\n<\/td>\n\nServices offered by :<\/p>\n
· Exhibition organizer for international business exhibitions<\/p>\n
· Tour operators, etc.<\/p>\n<\/td>\n<\/tr>\n
\n\nTransportation services<\/strong><\/p>\n<\/td>\n\n· Transportation of goods<\/p>\n
· Toll payment<\/p>\n
· Passenger’s transportation by air<\/p>\n
· Goods transportation (where the cost of transport is less than Rs. 1500, etc.)<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\n
Why is there a need of exemptions under GST?<\/h2>\n\n\n\n <\/p>\n\n\n\nThe Government can implement exemptions under GST on the following grounds:<\/em><\/strong><\/p>\n\n\n\nGST councils recommend the exemption.<\/li> The Government, through special order, may grant the exemption in special circumstances.<\/li> The exemption is granted when it is deemed to be in the public interest.<\/li> The exemption is done through an official order.<\/li><\/ul>\n\n\n\nHow will ITC be treated if the supply is exempted?<\/h2>\n\n\n\n The amount of credit as accountable to exempt the supplies must be reversed. Let us see how to determine the credit accountable to the supplies exempted.<\/p>\n\n\n\n
Credit accountable to supplies exempted = (A \/ T) * C<\/p>\n\n\n\n
Where,<\/em><\/strong><\/p>\n\n\n\nA = Aggregate value of exempt supplies (it includes all supplies other than taxable & zero-rated supplies)<\/p>\n\n\n\n
T = Total turnover of the person in the tax period<\/p>\n\n\n\n
C = Common Credit<\/p>\n\n\n\n
What is a non-taxable supply and is not subject to exemptions under GST?<\/h2>\n\n\n\n A non-taxable supply means a supply of goods or services that does not come under GST law. There must be a supply of goods or services or both to have qualified under the non-applicability of GST. The supplies that are excluded from the scope of GST must be covered within this definition.<\/p>\n\n\n\n
For example alcoholic liquor for human consumption, articles listed in section 9(2) or Schedule III.<\/p>\n\n\n\n
It is important to note that certain items are not out of the scope of GST. The GST rate for such items has not been announced or notified.<\/p>\n\n\n\n
These include:<\/em><\/strong><\/p>\n\n\n\nHigh-speed diesel;<\/li> Petroleum crude;<\/li> Natural gas;<\/li> Petrol; and<\/li> Aviation turbine fuel.<\/li><\/ul>\n\n\n\nConclusion<\/h2>\n\n\n\n Non-application of GST is called exemptions under GST.<\/p>\n\n\n\n
The exemption under GST is granted in 3 cases; businesses or individuals, goods and services.<\/p>\n\n\n\n
As per the 32nd<\/sup> GST council meeting held in 2019, the exemptions under GST can be when the threshold limit has been changed to Rs. 40 lakhs for businesses & individuals and hilly areas & north-eastern states, it is 20 lakhs.<\/p>\n\n\n\nThe threshold limit for services has been changed to Rs. 20 lakhs and for hilly areas & north-eastern states, it is 10 lakhs.<\/p>\n\n\n\n
Read our article<\/b>:GST Exemption: Agriculturist and Small Traders<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"Non-application of GST is called GST exemption. The exemptions under GST is granted in 3 cases: Businesses or individuals; Goods; and Services. The article talks about the exemption under GST in depth. What are exemptions under GST? Exemptions under GST mean that the supply does not attract goods & services tax. In simpler words, no […]<\/p>\n","protected":false},"author":55,"featured_media":48898,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[49],"tags":[3870],"acf":{"service_id":"334"},"yoast_head":"\n
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