Difference Between 'Exempt Supply' And Zero-Rated Supply'

Apparently an exempt supply and zero-rated supply look alike. Under both the cases a
a
person is not required to pay tax under the Sales Tax Act. However, these two types of
Supplies differ with each other on many points. Table given below contains several points at
which these supplies do not coincide with each other.

S. No. Point of Distinction Exempt Supply Zero-Rated Supply

1. Not taxable Taxable
Taxability
2 Not required Required
Registration under Sales Tax Act
3 Not allowed Allowed
Credit of Input Tax
Maintenance of records under the Sales Not required Compulsory
Tax Act
5 of return under the Sales Tax Act Not required Required
Filing