There are different kinds of supply under GST on which requires clarity so that correct reporting can be done while filing returns.

 Meaning of different supply under GST is as follows:-

  • Exempt Supply: It means supply of any goods or services or both which attracts nil rate of tax or which may be wholly exempt from tax under section 11, or under section 6 of the Integrated Goods and Services Tax Act, and includes non-taxable supply.
  • Non-Taxable Supply: It means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act;
  • Zero-Rated Supply: It shall have the meaning assigned to it in section 16.

Difference among Exempt, Nil, Non-Taxable & Zero-Rated Supply

Difference among the Exempt Supply, Nil-Rated Supply, Non-Taxable Supply and Zero-Rated Supply is as follows:-

Basis Exempt Supply Nil-Rated Supply Non-Taxable Supply Zero-Rated Supply
Provision Sub-section (47) of Section 2 of CGST Act, 2017 Sub-section (78) of Section 2 of CGST Act, 2017 Sub-section (23) of Section 2 of IGST Act, 2017
Meaning Exempted from tax u/s 11 of CGST Act, 2017 or u/s 6 of IGST Act, 2017 Supply attracts NIL Rate of Tax Not leviable to tax under CGST Act, 2017 or IGST Act, 2017 Exports of Goods or Services
Includes Nil-Rated Supply and Non-Taxable Supply Supply to SEZ Developer or SEZ Unit
Where to report in GSTR-1 Table – 8 Table 6A
Where to report in GSTR-3B Table 3.1(c) Table 3.1(e) Table 3.1(b)
Example Supply of Services by way of renting of residential dwelling for use as residence. There are no Nil Rated Goods or Services under GST Supply of Petrol Supply of Goods to person in UK

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One Comment

  1. Om Prakash Jain says:

    Madam,
    Per S.16(1) & 6(2), IGST Act, read with S.2(47),CGST Act, 2017, exports or supply to SEZ or to SEZ unit are Zero rated (Nil rated) & are exempt supply.
    CA Om Prakash jain s/o J.K.Jain, Jaipur
    Tel :9414300730

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