GST Exempted Goods: Exempted Goods Under GST
GST Exempted Goods: Exempted Goods Under GST
A GST exemption in India means that certain goods and services are not subject to Goods and Services Tax. This policy aims to make essential items more affordable and accessible to the general population. Exempt goods and services include many basic necessities such as food items, healthcare, and educational services. Unlike zero-rated goods, businesses dealing with exempt goods cannot claim a credit for the GST paid on inputs used to make these products. In this article, we will explore the list of goods that are exempt from GST.
Refer to our article to learn more about GST Exemption.
Which goods are Exempted from GST?
The GST framework exempts several essential goods to make them more affordable and accessible. Here’s a broad overview of some categories of goods typically exempt from GST in India:
List of Goods Exempt from GST in India
The government grants GST exemptions to various common goods, including but not limited to the following:
Food Items
This category includes cereals; fresh fruits and vegetables; edible roots and tubers; fresh fish and meat (unprocessed); tender coconut; jaggery; unprocessed tea leaves; unroasted coffee beans; seeds for planting; fresh ginger and turmeric; betel leaves; papad; all types of flour; curd, lassi, buttermilk; milk; and feeds and supplements for aquaculture.
Raw Materials
Exemptions in this category cover raw silk and silk waste, unprocessed wool, khadi fabric, cotton intended for khadi yarn, raw jute fibre, firewood, charcoal, and handwoven fabrics from traditional looms.
Tools and Instruments
Included are hearing aids, basic hand tools like spades and shovels, agricultural tools, handmade musical instruments, and devices and implements for use by individuals with disabilities.
Miscellaneous
This diverse category includes books, geographical maps, newspapers, journals, non-judicial stamp papers, postal articles; live animals (excluding horses); beehives, human blood and semen; plain bangles; chalk sticks; contraceptives, clay pots; religious props (including idols, bindi, and kumkum); kites; organic manure; and vaccines.
| Types of Goods | Examples |
| Live Animals | Asses, cows, sheep, goats, 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, 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. |
Click here to learn more about GST Exemption on Gold, Silver and Platinum
The Central Board of Indirect Taxes and Customs (CBIC) has granted GST exemption on specified medicines used in the treatment of COVID-19
List of Services Exempt from GST in India
Numerous services fall within the ambit of GST exemptions. The following list provides an overview of services exempt from GST:
Agricultural Services
These include all agricultural-related services except horse breeding. Services such as cultivation, harvesting, farm labour supply, fumigation, packaging, renting or leasing agricultural machinery, warehouse operations, and services related to the sale or purchase of agricultural produce by an Agricultural Produce Marketing Committee or Board.
Transportation Services
Exempt transportation services encompass:
- Road or bridge transportation upon toll payment.
- Goods transportation by road (excluding services provided by transport or courier agencies).
- Inland waterway goods transportation.
- Passenger air transport in northeastern states and Bagdogra.
- Non-AC horse or contract carriage transport; transportation of agricultural produce, milk, salt, newspapers, or wood grains.
- Goods transport with a gross charge under Rs. 1500.
- Hiring services for state transport undertakings, including vehicles carrying over 12 passengers and services to goods transport agencies.
Services by Government and Diplomatic Missions
- Services provided by foreign diplomatic missions in India.
- Services by the Reserve Bank of India.
- Government or local authority services, excluding:
- Postal services like speed post, express parcel post, life insurance, and agency services for individuals not representing the government.
- Services related to aircraft/vessels within or outside port or airport boundaries.
- Transportation of goods or passengers.
- Other services to business entities, except those covered under (a) and (b).
- Services to diplomats, including the United Nations.
- Life insurance is under the National Pension System, and services are provided by the Army, Naval, and Air Force group insurance.
Judicial Services
- Services by arbitral tribunals to non-business entities or small business entities.
- Legal services by partnership firms of advocates to non-business entities or small business entities.
- Legal services by senior advocates to non-business entities or small business entities.
Educational Services
- Transportation, mid-day meal catering, admissions, examinations, security, and housekeeping for educational institutions.
- Services by Indian Institutes of Management, excluding Executive Development Programmes.
- Coaching under the central sector scheme of ‘Scholarships for Students with Disabilities’.
Medical Services
- Veterinary clinic services; healthcare by clinics or paramedics.
- Services by ambulances, charities, and religious pilgrimage facilitators.
Services by Organizers
- Organizing business exhibitions abroad.
- Tour operator services to foreign tourists for tours conducted entirely outside India.
Miscellaneous Services
- Electricity transmission or distribution by authorized personnel.
- Services by recognized sports bodies.
- Services by journalists and news agencies like the Press Trust of India and United News of India.
- Services by slaughterhouses.
- Library services.
- Public convenience services, including washrooms and toilets.
- Vehicle rentals by State Transport Undertakings and Local Authorities.
- Overloading charges at toll plazas.
- Conducting religious ceremonies and renting religious premises.
New Exemptions
- Services by the GSTN to governments and Union Territories.
- Exemptions for the back office sector from GST.
- Services related to property rentals for residential purposes and room rentals under Rs. 1000 per day.
- IGST exemption on imports under lease agreements extends to goods transferred to a new lessee in India.
- Export of goods via air or sea, extended till September 30, 2022.
- Admission to various entertainment events, museums, parks, and wildlife sanctuaries if the charge is under Rs. 250 per person.
Download List of Exempted Goods Under GST
Attached is a file listing goods exempt from GST. You can download the PDF version of the GST Exempted Goods List using this file:
List of exempted goods under gst pdfReasons for GST Exemption on Certain Goods
Goods are exempted from GST for several reasons:
- Affordability: Ensuring essential goods and services remain financially accessible to all, especially lower-income groups.
- Accessibility: Keeping crucial life necessities within reach for everyone without the added financial burden of taxes.
- Social Welfare: Supporting the consumption of basic needs which contribute to the overall welfare and health of the population.
- Economic Stability: Helping stabilize essential sectors vital to the country’s economy and public well-being.
- Equity: Reducing economic disparities by lessening the tax load on essential products that form a larger proportion of lower-income spending.
Conclusion
In conclusion, understanding GST exemptions is vital for businesses to ensure compliance and make informed financial decisions. These exemptions help keep essential goods and services affordable and accessible to everyone. If you’re still unsure about whether you need GST registration or have any questions regarding GST compliance, IndiaFilings can provide expert assistance.
Talk to our experts today for comprehensive support and guidance on GST registration and compliance to keep your business running smoothly.
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