WHAT IS ZERO RATED SUPPLY IN GST?

Any supplies made by a registered dealer as an export (both goods and services) or supply to an SEZ qualifies for Zero Rated Supplies in GST. The rate of tax on such supplies is ‘Zero’ or we can say the supplies are tax-free. The supplies to a developer of an SEZ are also covered under Zero-Rated Supplies in GST as no tax is levied on these supplies as well. There are certain supplies on which there is no incidence of GST. It is important to understand the underlying difference among all such supply criterions:

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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