Goods or services on which GST rate of 0 % is applicable are called NIL rated goods or services. Such goods or services, on which GST rate of 0% is applicable, are listed in schedule 1 under GST rate schedule. Input tax credit of inputs and or input services used in providing supply attracting Nil rate is not available i.e. no input tax credit on Nil rated supplies.
Examples: Jiggery, Salt, grains, Cereals etc.
|Particulars||NIL Rated Supplies||Non-Taxable Supplies||Exempt Supplies||Zero-Rated Supplies|
|Meaning||Goods and services on which 0% GST is applicable||Goods and services on which GST is not levied at all||Supplies which are exempt from payment of GST||Goods or services which are exported or supplied to SEZ|
|Input credit availability||Not available||Not available||Not available||Available|
|GST applicability||Falls within GST ambit||Doesn’t fall within GST ambit||Falls within GST ambit||Falls within GST ambit|
|Example||Hotel accommodation with tariff below Rs. 1,000||Supply of alcohol for human consumption||Inward supplies from unregistered dealers||Export of shoes to South Africa|