Given under the central goods and services tax act, 2017 and integrated goods and services tax act,. Let us take a look at what distinguishes each of them. While the end result of all these supplies is the same, i.e Gst is not applicable on the supply, but it is important to know the difference especially for the purpose of filing correct gst returns and accurate claim of itc. Learn practical insights, examples, & compliance tips. Zero rated supplies are exports or supplies to special economic zones (sezs) taxed at 0% gst rate
These supplies are not exempt by notification, but their tax rate is explicitly set at 0% under the gst rate schedule Supplies exempted from gst either fully or partially under section 11 of the cgst act or section 6 of the igst act These supplies are exempt from gst, meaning no tax applies, whether at a 0% rate or any other rate These supplies are taxable under gst but have a 0% tax rate. Conceptual distinction between nil rated and exempt supplies A nil rated supply refers to goods or services that are subject to gst but attract a 0% tax rate as specified in the rate notifications issued under section 9 of the central goods and services tax act, 2017 (cgst act).
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