Under different taxation systems, a list of goods or services is exempt from tax due to socio-economic reasons. For example, the sale of life-saving drugs or books meant for reading in different state governments exempt from taxes.
Similarly, there are some exceptions even under GST where goods or services are exempt from tax liability. Such exemptions on specified goods or services are granted by the government based on certain conditions. However, while determining the tax liability under GST, there is a need to check for not only the goods or services that are chargeable to GST. But, you also need to look into goods or services that are exempt from tax.
What is an Exempt Supply under GST?
As per section 2(47) of CGST Act 2017, an exempt supply means any goods or services or both:
- which attract nil rate of tax or
- that may be wholly exempt from tax under section 11 or
- may be wholly exempt from tax under section 6 of IGST act or
- including non-taxable supply
Thus, exempt supply includes the supply of following types of goods or services:
- supply attracting nil rate of tax
- supplies wholly exempt from tax
- non – taxable supplies
List of Goods Exempt Under GST
- Live asses, mules, and hinnies
- Bovine animals
- Live swine
- Sheep and goats
- Live poultry, that is to say, fowls of the species Gallus domesticus, ducks, geese, turkeys, and guinea fowls
- Other live animals such as Mammals, Birds, Insects
- The meat of bovine animals, fresh and chilled
- Bovine animals’ meat or frozen meat
- The meat of swine, fresh, chilled or frozen
- Sheep or goats’ meat, fresh meat, chilled meat or frozen meat
- The meat of horses, asses, mules or hinnies, fresh, chilled or frozen
- Edible offal of bovine animals, swine, sheep, goats, horses, asses, mules or hinnies, fresh, chilled or frozen
- Meat and edible offal, of the poultry
- Other meat and edible meat offal, fresh, chilled or frozen
- Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, fresh, chilled or frozen
- Poultry fat, free of lean meat, and pig fat, not rendered or otherwise extracted, salted, in brine, dried or smoked
- Meat and edible meat offal, salted, in brine, dried or smoked; edible flours and meals of meat or meat offal, other than put up in unit containers
Fish, Meat, and Fillets
- Fish seeds, prawn/shrimp seeds whether or not processed, cured or in the frozen state
- Fish, fresh or chilled, excluding fish fillets and other fish meat
- Live fish
- Fish fillets and other fish meat, fresh or chilled
- Crustaceans, whether in a shell or not, live, fresh or chilled; crustaceans, in shell, cooked by steaming or by boiling in water live, fresh or chilled
- Molluscs, whether in a shell or not, live, fresh, chilled; aquatic invertebrates other than crustaceans and mollusks, live, fresh or chilled
- Aquatic invertebrates other than crustaceans and mollusks, live, fresh or chilled
Eggs, Honey and Milk Products
- Natural honey, other than put up in a unit container and bearing a registered brand name Fresh milk and pasteurized milk, including separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, excluding Ultra High-Temperature milk
Curd; Lassi; Buttermilk
- Chena or paneer, other than put up in unit containers and bearing a registered brand name Birds’ eggs, in shell, fresh, preserved, or cooked.
Non – Edible Animal Products
- Human hair, unworked, whether or not washed or scoured; waste of human hair.
- All goods i.e. Bones and horn-cores, unworked, defatted, simply prepared (but not cut to shape), treated with acid or gelatinized; powder and waste of these products.
- Semen including frozen semen
- All goods i.e. Hoof meal; horn meal; hooves, claws, nails, and beaks; antlers; etc.
Live Trees and Plants
- Live trees and other plants; bulbs, roots and the like; cut flowers and ornamental foliage.
- Tomatoes, fresh or chilled
- Cucumbers and gherkins, fresh or chilled
- Potatoes, fresh or chilled
- Onions, shallots, garlic, leeks, and other alliaceous vegetables, fresh or chilled
- Cabbages, cauliflowers, kohlrabi, kale and similar edible brassicas, fresh or chilled
- Lettuce (Lactuca sativa) and chicory (Cichorium spp.), fresh or chilled
- Carrots, turnips, salad beetroot, salsify, celeriac, radishes and similar edible roots, fresh or chilled
- Other vegetables, fresh or chilled
- Dried vegetables, whole, cut, sliced, broken or in powder, but not further prepared
- Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes, and similar roots and tubers with high starch or inulin content, frozen or dried, whether or not sliced or in the form of pellets inserted w.e.f 14/11/2017: and put up in a unit container and –
(a) bearing a registered brand name; or
(b) displaying a brand name on which an actionable claim or enforceable right in a court of law is available [other than those where any actionable claim or enforceable right in respect of such brand name has been foregone voluntarily
- Dried leguminous vegetables, shelled, whether or not skinned or split
- Manioc, arrowroot, salep, Jerusalem, artichokes, sweet potatoes, and similar roots and tubers with high starch or inulin content, fresh or chilled; sago pith
Fruits and Dry Fruits
- Coconuts, fresh or dried, whether or not shelled or peeled
- Brazil nuts, fresh, whether or not shelled or peeled.
- Other nuts, Other nuts, fresh such as Almonds, Hazelnuts or filberts (Corylus spp.), walnuts, Chestnuts (Castanea spp.), Pistachios, Macadamia nuts, Kola nuts (Cola spp.), Areca nuts, fresh, whether or not shelled or peeled.
- Bananas, including plantains, fresh or dried
- Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh
- Citrus fruit, such as Oranges, Mandarins (including tangerines and satsumas); clementines, Wilkins and similar citrus hybrids, Grapefruit, including pomelos, Lemons (Citrus limon, Citrus Limonum) and limes (Citrus aurantifolia, Citrus latifolia), fresh Grapes, fresh Melons (including watermelons) and papaws (papayas), fresh
- Apples, pears, and quinces, fresh
- Apricots, cherries, peaches (including nectarines), plums and sloes, fresh
- Other fruit such as strawberries, raspberries, blackberries, mulberries and loganberries, black, white or red currants and gooseberries, cranberries, bilberries and other fruits of the genus vaccinium, Kiwi fruit, Durians, Persimmons, Pomegranates, Tamarind, Sapota (chico), Custard-apple (ata), Bore, Litchi, fresh
- Peel of citrus fruit or melons (including watermelons), fresh
Tea, Coffee, and Spices
- Coffee beans, not roasted
- Unprocessed green leaves of the tea
- Seeds of anise, badian, fennel, coriander, cumin or caraway; juniper berries [of seed quality] Fresh turmeric, other than in the processed form
- Ginger (Fresh), other than in the processed form
- All goods of seed quality
- Wheat and meslin (other than those put up in a unit container and bearing a registered brand name.
- Rye (other than those put up in a unit container and bearing a registered brand name) (HSN Code – 1002).
- Barley (other than those put up in a unit container and bearing a registered brand name).
- Oats (other than those put up in a unit container and bearing a registered brand name).
- Maize (corn) (other than those put up in a unit container and bearing a registered brand name).
- Rice (other than those put up in a unit container and bearing a registered brand name).
- Grain sorghum (other than those put up in a unit container and bearing a registered brand name).
- Buckwheat, millet and canary seed; other cereals such as Jawar, Bajra, Ragi (other than those put up in a unit container and bearing a registered brand.
Milling Industry Products
- Wheat or meslin flour (other than those put up in a unit container and bearing a registered brand name).
- Cereal flours other than of wheat or meslin, (maize (corn) flour, Rye flour, etc.) (other than those put up in a unit container and bearing a registered brand name).
- Guar meal
- Cereal groats, meal, and pellets (other than those put up in a unit container and bearing a registered brand name).
- Flour, of potatoes (other than those put up in a unit container and bearing a registered brand name deleted w.e.f 10/11/2017).
- Cereal grains hulled.
- Flour, of the dried leguminous vegetables of heading 0713 (pulses) (other than guar meal 1106 10 10 and guar gum refined split 1106 10 90), of sago or of roots or tubers of heading 0714 or of the products of Chapter 8 i.e. of tamarind, of singoda, mango flour, etc. (other than those put up in a unit container and bearing a registered brand name).
Oil Seeds, Fruit, and Part of Plants
- All goods of seed quality
- Soya beans, whether or not broken, of seed quality
- Ground-nuts, not roasted or otherwise cooked, whether or not shelled or broken, of seed quality
- Linseed, whether or not broken, of seed quality
- Rape or colza seeds, whether or not broken, of seed quality
- Sunflower seeds, whether or not broken, of seed quality
- Other oil seeds and oleaginous fruits (i.e. Palm nuts and kernels, cotton seeds, Castor oil seeds, Sesamum seeds, Mustard seeds, Safflower (Carthamus tinctorius) seeds, Melon seeds, Poppy seeds, Ajams, Mango kernel, Niger seed, Kokam) whether or not broken, of seed quality
- Seeds, fruit, and spores, of a kind used for sowing
Hop cones, fresh
- Plants and parts of plants (including seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for an insecticidal, fungicidal or similar purpose, fresh or chilled
- Locust beans, seaweeds and other algae, sugar beet and sugar cane, fresh or chilled
- Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets
- Swedes, mangolds, fodder roots, hay, lucerne (alfalfa), clover, sainfoin, forage kale, lupines, vetches, and similar forage products, whether or not in the form of pellets
Gums, Resins, Vegetable SAP & Extracts
- Lac and Shellac
Vegetable Materials and Products
- Vegetable materials of a kind used primarily for plaiting (for example, bamboos, rattans, reeds, rushes, osier, raffia, cleaned, bleached or dyed cereal straw, and lime bark)
- Unworked coconut shell
- Betel leaves
- Vegetable materials, for the manufacture of jhadoo or broomsticks
Sugar, Jaggery, Honey & bubble Gums
- Jaggery of all types including Cane Jaggery (Gur) and Palmyra Jaggery
Pizza, Cake, Bread, Pasta & Waffles
- Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as Chira, parched rice, commonly known as Khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki
- Pappad, by whatever name it is known, except when served for consumption
- Bread (branded or otherwise), except when served for consumption and pizza bread
Tea & Coffee Extract & Essence
- Prasadam is supplied by religious places like temples, mosques, churches, gurudwaras, dargahs, etc.
Water, Mineral & Aerated
- Water (other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in a sealed container)
- Non-alcoholic Toddy, Neera including date and palm neera
- Tender coconut water other than put up in a unit container and bearing a registered brand name.
Flours, Meals & Pellets
- Aquatic feed including shrimp feed and prawn feed, poultry feed & cattle feed, including grass, hay & straw, supplement & husk of pulses, concentrates & additives, wheat bran & de-oiled cake.
Salts & Sands
- Salt, all types
Fossil Fuels – Coal and Petroleum
- Electrical energy
Gases and Nonmetals
- Dicalcium phosphate (DCP) of animal feed grade conforming to IS specification No.5470: 2002.
Drugs & Pharmaceuticals
- Human Blood and its components
- All types of contraceptives
- All goods and organic manure other than put up in unit containers and bearing a registered brand name.
Essential Oils, Beauty Products
- Kajal (other than kajal pencil sticks), Kumkum, Bindi, Sindur, Alta.
Insecticides, Artificial Carbon & Graphite
- Municipal waste, sewage sludge, clinical waste.
Polymers, Polyethylene, Cellulose
- Plastic bangles
Rubber, Plates, Belt, Condensed Milk
- Condoms and contraceptives
Fuelwood, Wood Charcoal
- Firewood or fuelwood
- Wood charcoal (including shell or nut charcoal), whether or not agglomerated.
Newsprint, Uncoated paper & paperboard
- Judicial, Non-judicial stamp papers, Court fee stamps when sold by the Government Treasuries or Vendors authorized by the Government.
- Postal items, like an envelope, Postcard, etc., sold by Government.
- Rupee notes when sold to the Reserve Bank of India.
Printed Books, Brochures, Newspapers
- Cheques, lose or in book form
- Printed books, including Braille books
- Newspapers, journals, and periodicals, whether or not illustrated or containing advertising material
- Children’s picture, drawing or coloring books
- Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed
Silkworm Cocoon, Yarn, Waste & Woven Fabrics
- Silkworm laying, cocoon
- Raw silk
- Silk waste
- Khadi fabric, sold through Khadi and Village Industries Commission(KVIC) and KVIC certified institutions/outlets
Wool Materials & Waste, Animal Hairs
- Wool, not carded or combed
- Fine or coarse animal hair, not carded or combed
- Waste of wool or of fine or coarse animal hair
Cotton Materials, Synthetics & Woven Fabrics
- Gandhi Topi
- Khadi Yarn
Flex Raw, Vegetable Materials & Paper Yarn
- Jute fibers, raw or processed but not spun
- Coconut, coir fiber
Blankets & Bedsheets
- Indian National Flag
Artificial flowers, Wigs & False Beards
- Human hair, dressed, thinned, bleached or otherwise worked
Bricks, Blocks & Ceramics
- Idols made of clay
- Earthen pot and clay lamps
Glasses, Mirrors, Flasks
- Glass bangles
Hand Tools & Cutlery
- Agricultural implements manually operated or animal drove i.e. Hand tools, such as spades, shovels, mattocks, picks, hoes, forks and rakes; axes, bill hooks, and similar hewing tools; secateurs and pruners of any kind; scythes, sickles, hay knives, hedge shears, timber wedges and other tools of a kind used in agriculture, horticulture or forestry
- Amber charkha
Balloons, Parachutes & Airlift Gear
- Spacecraft (including satellites) and suborbital and spacecraft launch vehicles
- Parts of goods
Medical, Chemical & Astronomy
- Hearing aids
Pencil Lighter Toiletries
- Buddhas made of sarkanda and Phool Bahari jhadoo
- Slate pencils and chalk sticks
- Indigenous handmade musical instruments
Machinery Lab Chemicals Drugs Medicines
- Passenger baggage