List of Goods & Services Exempted Under GST

The Goods and Services Tax (GST) in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. While GST aims to bring about uniformity in the tax structure and remove the cascading effect of taxes, certain goods and services are exempted from GST to provide relief to specific sectors and ensure affordability for the common man. Here’s a detailed list and explanation of the major goods and services that are exempted under GST.

List of GST Exempted from GST

Here is a detailed list of the major goods and services that are exempt under GST, providing relief to various sectors and supporting affordability.

Exempted Goods Under GST

1. Essential Commodities

• Fresh Fruits and Vegetables: Exempt to ensure affordability and access to healthy food.
• Unprocessed Cereals and Pulses: Basic food items like wheat, rice, and lentils are exempt from GST.
• Raw Meat, Fish, Eggs, and Milk: These essential protein sources are GST-free to support nutritional security.

2. Agricultural Products

• Seeds and Plants: Seeds for sowing and other agricultural products are exempt to encourage farming activities.
• Transport of Agricultural Produce: Exemptions apply to the movement of goods like grains and vegetables from farms to markets.

3. Books and Educational Materials

• Printed Books and Newspapers: Exemptions foster literacy and make educational materials affordable.
• Educational Kits: Items like slates, blackboards, and chalk are GST-free to reduce costs for schools.

4. Healthcare Products

• Human Blood and Blood Products: Essential for life-saving treatments and kept outside the GST net.
• Contraceptives: Exempt to promote public health and family planning.

5. Traditional and Eco-Friendly Goods

• Handloom Products and Khadi Garments: Supporting artisans and rural economies, these products are GST-free.
• Clay Idols and Biodegradable Items: Encouraging sustainable practices, these are exempt from GST.

Exempted Services Under GST

1. Educational Services

• School and College Services: Services related to education, including transportation of students and faculty, are GST-free.
• Vocational Training Programs: Recognized skill development courses are exempt to promote employability.

2. Healthcare Services

• Medical Services: Hospitalization, surgeries, and diagnostic services are exempt from GST.
• Medical Consultation: Individual practitioners offering consultation are also GST-free.

3. Public Welfare Services

• Water and Electricity Supply: Essential utilities like drinking water and electricity are exempt to keep them affordable.
• Public Transport: Services like non-AC rail travel, metro, and bus services are GST-free.

4. Financial and Government Services

• Interest on Loans: Exempt to support financial inclusion.
• Sovereign Functions: Law enforcement, public administration, and other governmental services remain exempt.

5. Charitable Activities

• NGOs and Charitable Trusts: Registered entities providing healthcare, education, or religious services are GST-free.

FAQs on GST Exemptions

1. What is the GST exemption limit for small businesses?

Small businesses with an annual turnover of up to ₹40 lakh (₹20 lakh for special category states) are exempt from GST registration and payment. For more detail read our blog Threshold Limit for GST Registration

2. Are government services exempt from GST?

Yes, services related to sovereign functions like defense, law enforcement, and public administration are exempt from GST. For more idea, refer our blog on GST on Import and Export Duties in India

3. Is GST applicable on exports?

No, exports fall under zero-rated supplies, meaning they are taxed at 0%, and exporters can claim a refund for input taxes.

4. Are training programs for agriculture exempt?

Yes, agricultural training services provided by recognized agencies are GST-free.

5. Is public transport exempt from GST?

Yes, non-AC public transport services, including rail, metro, and buses, are GST-exempt to keep commuting affordable.

Distinction Between Exempt, Nil-Rated, and Zero-Rated Supplies

• Exempt Supplies: No GST is charged, and ITC cannot be claimed.
• Nil-Rated Supplies: Goods or services taxed at 0%, and ITC can be claimed.
• Zero-Rated Supplies: Exported goods and services taxed at 0%, allowing ITC refunds.

Conclusion

GST exemptions aim to make essential goods and services accessible, benefiting various sectors such as agriculture, healthcare, and education. By understanding these exemptions, businesses and consumers can navigate the GST framework more effectively, ensuring compliance and taking full advantage of the relief provided.

Related topics:-
Understanding the Types of Services Under the GST Regime in India
Impact of GST Regulations on Supply Chain and Logistics in India