WHAT IS NIL RATED SUPPLY IN GST?

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.

ParticularsNIL Rated SuppliesNon-Taxable SuppliesExempt SuppliesZero-Rated Supplies
MeaningGoods and services on which 0% GST is applicableGoods and services on which GST is not levied at allSupplies which are exempt from payment of GSTGoods or services which are exported or supplied to SEZ
Input credit availabilityNot available Not availableNot availableAvailable
GST applicabilityFalls within GST ambitDoesn’t fall within GST ambitFalls within GST ambitFalls within GST ambit
ExampleHotel accommodation with tariff below Rs. 1,000Supply of alcohol for human consumptionInward supplies from unregistered dealersExport of shoes to South Africa
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