Subject: Goods & Service Tax

Topic: Exemptions from GST

Semester: 5 th

Unit-III (Chapter-4)
Teacher:
Ms. Tanvi Sharda Sharma
Assistant Professor
Learning To learn the concept of exemptions.
Objectives:
To know exempted goods under GST.

To know exempted services under GST.

Learning
Outcomes:

After To understand meaning of exempt supply.

learning this
topic,
students
To know various goods & services exempted from
will be able:
GST.
WHAT IS EXEMPT SUPPLY?

Exempt supplies comprise the following three types of supplies:

• Supplies taxable at a ‘NIL’ rate of tax* (0% tax);
• Supplies that are wholly or partially exempted from CGST or IGST, by
way of a notification amending Section 11 of CGST Act or Section 6 of
IGST Act;
• Non-taxable supplies as defined under Section 2(78) – supplies that are
not taxable under the Act (For Example Alcoholic liquor for human
consumption.
Tax need not be paid on these supplies. Input tax credit attributable to
exempt supplies will not be available for utilization/setoff.
POWER TO GRANT EXEMPTION
Supplier may be exempt – Exemption to the person making
supplies-i.e supplier, regardless of the nature of outward supply.
Ex: Services by Securities and Exchange Board of India, Services
by Charitable entities.
Certain Supplies may be exempt –Certain supplies due to their
nature and type are exempted from GST. All supplies that are
notified would be eligible for the exemption. Here, irrespective
of who the supplier is, exemption is allowed.
Ex: Services by way of sponsorship of sporting events, Services
by way of public conveniences

CLASSIFICATION OF EXEMPTIONS
Absolute exemption: Exemption without any conditions.
Ex: Transmission or distribution of electricity by an electricity transmission or
distribution utility, Services by Reserve Bank of India.
Conditional Exemption: Exemption subject to certain conditions.
Ex: Services by a hotel, inn, guest house, club or campsite, by whatever name
called, for residential or lodging purposes, having declared tariff of a unit of
accommodation less than ` 1000/- per day”.
Conditional or partial exemption:
Intra-State supplies of goods and/or services received from an unregistered
person by a registered person is exempted from payment of tax under reverse
charge provided the aggregate value of such supplies received by a registered
person from all or any of the suppliers does not exceed ` 5000/- in a day.

TYPES OF EXEMPTIONS
EXEMPTIONS: GOODS
✔ Live Animals
✔ Meat
✔ Fish, Meat and Fillets
✔ Eggs, Honey and Milk Products
✔ Non – Edible Animal Products
✔ Live Trees and Plants
✔ Vegetables
✔ Fruits and Dry Fruits
✔ Tea, Coffee and Spices
✔ Edible Grains
✔ Milling Industry Products
✔ Oil Seeds, Fruit and Part of Plants
✔ Gums, Resins, Vegetable SAP & Extracts
✔ Vegetable Materials and Products
EXEMPTIONS: GOODS
✔ Sugar, Jaggery, Honey & bubble Gums
✔ Pizza, Cake, Bread, Pasta & Waffles
✔ Tea & Coffee Extract & Essence
✔ Water, Mineral & Aerated
✔ Flours, Meals & Pellets
✔ Salts & Sands
✔ Fossil Fuels – Coal and Petroleum
✔ Gases and Nonmetals
✔ Drugs & Pharmaceuticals
✔ Fertilizers
✔ Essential Oils, Beauty Products
✔ Insecticides, Artificial Carbon & Graphite
✔ Polymers, Polyethylene, Cellulose
✔ Rubber, Plates, Belt, Condensed Milk
✔ Fuel wood, Wood Charcoal
✔ Newsprint, Uncoated paper & paperboard
EXEMPTIONS: GOODS
✔ Printed Books, Brochures, Newspapers
✔ Wool Materials & Waste, Animal Hairs
✔ Cotton Materials, Synthetics & Woven Fabrics
✔ Flex Raw, Vegetable Materials & Paper Yarn
✔ Blankets & Bedsheets
✔ Artificial flowers, Wigs & False Beards
✔ Bricks, Blocks & Ceramics
✔ Glasses, Mirrors, Flasks
✔ Hand Tools & Cutlery
✔ Industrial Machinery
✔ Balloons, Parachutes & Airlift Gear
✔ Medical, Chemical & Astronomy
✔ Pencil Lighter Toiletries
✔ Musical Instruments
✔ Machinery Lab Chemicals Drugs Medicines
 ✔ Charitable and religious activity related
services
✔ Agriculture related services
✔ Education services
✔ Health care services
✔ Services provided by government.
✔ Construction services
EXEMPTIONS: ✔ Passenger transportation services
SERVICES ✔ Goods transportation services
✔ Banking & Finance services
✔ Life Insurance services
✔ Services provided by specific bodies
✔ General Insurance Business services
✔ Pension schemes
✔ Services Provided to Government
✔ Other exempt services