List of Goods & Services Exempt Under GST

Types of Exemption in GST

The following are the types of GST exemptions applicable:

1. Conditional: This category of exemption is applicable on goods and services only if certain conditions.
   1. Example: Hospital rooms charges are exempt from GST if the cost is below Rs.5000 for a day.
2. Partial: This category of exemption is also granted when certain specific conditions are met.
   1. Example: If a registered person receives goods or services from an unregistered supplier within the same state, then it is exempt from GST, as long as the value of service or product does not exceed Rs.5,000 in a day.

1. Absolute: Services that are exempted from GST without any conditions.
   1. Example: Electricity transmission services are exempt from GST.

1. Supply based: This type of exemption is usually applicable to suppliers involved in public-welfare or non-profit activities, irrespective of what they are selling.
   1. Example: Public utility services like water supply and healthcare related supplies are exempt from GST under this category.

1. Supplier based: Suppliers involved in public welfare, non-profit, and other charitable activities are exempt from GST under this category.
   1. Example: Services provided by non-charitable organisations are exempt from paying taxes under this category.

List of GST Exemptions

List of GST Exemptions on Goods

The below listed are examples of GST exempt goods:

List of GST Exemptions on Services

The below listed are examples of GST exempt agricultural services:

What is an exempt supply under GST?

The following is the list of supplies that are exempted under GST:

1. Under CGST or SGST, partial or whole exemption on supplies
2. Supplies taxed at nil or 0% tax rate 
3. Under Section 2(78), supplies are exempted from GST

Note: The input tax credit to these supplies cannot be utilised

Here is the list of supplies and their corresponding meaning:

1. Zero-rated: The supplies are exported to the SEZ (Special Economic Zone) developers
2. Nil rated: Supplies such as salt that taxed at 0%
3. Non-GST: Not included under the purview of GST law, such as alcohol for human consumption

1. Exempt: Supplies, such as curd and fruit that are taxed yet do not attract GST

Detailed Explanation about List of GST Exemptions:

GST Exemption for Start-ups and Small Businesses

The following are the points to remember if individuals spiring to start a business and avail GST exemptions:

1. A quarterly filing system can be opted if income is below Rs.5 crore of a small business
2. Business recognised as a GST-exempt business if turnover is less than Rs.40 lakhs
3. Small business exempted from e-invoicing under GST and may also need to apply for e-invoicing mandatorily if turnover more than Rs.50 crore
4. If a business has an around Rs.1.5 crore of lower annual aggregate turnover, then they can avail composition scheme under GST and individual will pay tax at a fixed rate ranging between 1.00% to 6.00%.

GST Exemption from Registration

Here is the list of categories of taxpayers not registered for GST:

1. Ones supplying goods covered under reverse charge
2. Non-GST goods and services supplied by a person
3. Agriculturists
4. Other than the supply of goods or services, taxpayers engaged in various activities

1. Exempt suppliers of goods and services
2. Individuals exempted from GST registration who belongs to the threshold exemption limit

Exempted Services under GST

Here is the list of GST exempted services in India:

1. Foreign diplomatic and government services

1. Labour supply for farms
2. Services offered by IRDAI, RBI, NPS, Central and State Government, NPS and others
3. Services like pre-conditioning, waxing, retail packing, etc.
4. Auto-rickshaws, public transportation services, metered cabs, metro, etc.
5. Transportation of agricultural products and goods outside of India

1. Goods transportation where the charges are less than Rs.1500
2. Under the Pradhan Mantri Jan-Dhan Yojana (PMJDY), banking services like Basic Saving Bank Deposit (BSBD) account operable
3. Ambulance and charity services and healthcare and educational services such as mid-day meal catering, VET clinics, paramedics, etc.  qualify for exemption under GST 
4. GST exempt services such as agricultural services, includes warehouse, cultivation, harvesting, packaging, supply, leasing of machinery, horse rearing, etc.
5. Sports organisation, tour guides, religious ceremonies, and libraries are exempted under GST

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Exempted Goods under GST

Here is the list of GST exempted goods in India:

1. Components such as human blood
2. Manufacturing parts of hearing aids, such as handloom, chalks, slates, etc.
3. Non-GST goods include egg, fish, fresh milk, etc.

1. Raw silk, unspun jute fibres, khadi fibre, etc.
2. Unprocessed edibles, such as unroasted coffee beans, green tea leaves, melons, grapes, ginger, ginger, etc.
3. Dry and fresh vegetable onions, potato, and other leguminous vegetables
4. Food items, such as wheat, corn, hulled cereal grains, rice, etc.

Note: Once processed, certain non-GST items will attract a GST.

Reasons for Exemption under GST

The following are the cases under which goods may be exempted from registering under GST according to the government:

1. To support public welfare: The government offers GST exemption on basic food items, healthcare, and education to make it accessible to everyone.

1. To support small businesses: Small businesses play a vital role in the economy. The government offers GST exemption to small businesses to reduce compliance burdens and support them.

1. To boost exports: Exports are typically zero-rated under GST. This is done to Indian products in international market and ensure they remain competitive globally by removing domestic tax costs.

1. Improve interstate trade: The government exempts or imposes low tax rates on certain interstate supplies to promote the smooth movement of goods and services across state borders.

1. To promote agriculture: The government offers GST exemption on a wide range of agricultural products and related services to support farmers and promote the agricultural sector.