by GST exemptions for goods
There is a list of goods which do not attract GST as recommended by the GST Council. The reasons for granting exemption on goods might include any of the following:
- In the interest of the public
- The exemption is as per the GST Council’s recommendation
- The exemption is granted by the Government through a special order
- The exemption is allowed on specific goods through an official notification
Moreover, there are two types of GST exemptions on goods. These are as follows:
- Absolute exemption: Under this type of exemption, the supply of specific types of goods would be exempted from GST without considering the details of the supplier or receiver and whether the good is supplied within or outside the State.
- Conditional exemption: Under this type of exemption, supply of specific types of goods would be GST exempt subject to certain terms and conditions which have been specified under the GST Act or any amendment or notification.
Here is a list of some of the most common goods which are GST exempt:
| Types of goods | Examples |
| Live animals | Asses, cows, sheep, goat, poultry, etc. |
| Meat | Fresh and frozen meat of sheep, cows, goats, pigs, horses, etc. |
| Fish | Fresh or frozen fish |
| Natural products | Honey, fresh and pasteurized milk, cheese, eggs, etc. |
| Live trees and plants | Bulbs, roots, flowers, foliage, etc. |
| Vegetables | Tomatoes, potatoes, onions, etc. |
| Fruits | Bananas, grapes, apples, etc. |
| Dry fruits | Cashew nuts, walnuts, etc. |
| Tea, coffee and spices | Coffee beans, tea leaves, turmeric, ginger, etc. |
| Grains | Wheat, rice, oats, barley, etc. |
| Products of the milling industry | Flours of different types |
| Seeds | Flower seeds, oil seeds, cereal husks, etc. |
| Sugar | Sugar, jaggery, etc. |
| Water | Mineral water, tender coconut water, etc. |
| Baked goods | Bread, pizza base, puffed rice, etc. |
| Fossil fuels | Electrical energy |
| Drugs and pharmaceuticals | Human blood, contraceptives, etc. |
| Fertilizers | Goods and organic manure |
| Beauty products | Bindi, kajal, kumkum, etc. |
| Waste | Sewage sludge, municipal waste, etc. |
| Ornaments | Plastic and glass bangles bangles, etc. |
| Newsprint | Judicial stamp paper, envelopes, rupee notes, etc. |
| Printed items | Printed books, newspapers, maps, etc. |
| Fabrics | Raw silk, silkworm cocoon, khadi, etc. |
| Hand tools | Spade, hammer, etc. |
| Pottery | Earthen pots, clay lamps, etc. |
GST Exemption on services
Just like specific goods, specific services are also GST exempt. There are three types of supply of services which would qualify for GST exemption. These include the following:
- Supplies which have a 0% tax rate
- Supplies which do not attract CGST or IGST due to the provisions stated in a notification which amends either Section 11 of CGST Act or Section 6 of IGST Act
- Supplies which are defined under Section 2(78) of the GST Act which are not taxable.
Since these types of supplies are GST exempt, any Input Tax Credit which is applicable on these supplies would not be available to utilise or set off the GST liability.
Moreover, even under supply of services, there can be two types of GST exemptions which are as follows –
- Absolute exemption wherein the service would be exempted from GST without any conditions
- Conditional exemption or partial exemption wherein exemption is granted based on a condition. This condition states that if the service is supplied intra-State or if the service is supplied by a registered person to an unregistered one, GST would be exempted if the total value of such supplies received by a registered person is not more than INR 5000/day.
Here is a list of some of the services which enjoy GST exemption:
| Types of services | Examples |
| Agricultural services | Cultivation, supplying farm labour, harvesting, warehouse related activities, renting or leading agricultural machinery, services provided by a commission agent or the Agricultural Produce Marketing Committee or Board for buying or selling agriculture produce, etc. |
| Government services | Postal service, transportation of people or goods, services by a foreign diplomat in India, services offered by the Reserve Bank of India, services offered to diplomats, etc. |
| Transportation services | Transportation of goods by road, rail, water, etc., payment of toll, transportation of passengers by air, transportation of goods where the cost of transport is less than INR 1500, etc. |
| Judicial services | Services offered by arbitral tribunal, partnership firm of advocates, senior advocates to an individual or business entity whose aggregate turnover is up to INR 40 lakhs |
| Educational services | Transportation of faculty or students, mid-day meal scheme, examination services, services offered by IIMs, etc. |
| Medical services | Services offered by ambulance, charities, veterinary doctors, medical professionals, etc. |
| Organizational services | Services offered by exhibition organisers for international business exhibitions, tour operators for foreign tourists, etc. |
| Other services | Services offered by GSTN to the Central or State Government or Union Territories, admission fee payable to theatres, circuses, sports events, etc. which charge a fee up to INR 250 |
Though GST is applicable for all businesses and on the supply of goods and services, the above-mentioned exemptions are available. These exemptions reduce the GST burden and help in the socio-economic development of the country.
One thought on “Taxable value of Goods and Services not covered under GST”