Q. Consider the following items:
- Cereal grains hulled
- Chicken eggs cooked
- Fish processed and canned
- Newspapers containing advertising material
Which of the above items is/are exempted under GST (Good and Services Tax)?
- 1 only
- 2 and 3 only
- 1, 2 and 4 only
- 1, 2, 3 and 4
Answer: (c) 1, 2 and 4 only
Notes:
- GST exemptions are specific goods or services that are exempt from the application of GST.
- There are three types of GST exemptions available in India.
- Absolute: Absolute exemptions are those exemptions that are provided on the full amount and do not come with any conditions or restrictions, whatsoever. A good example is the exemption on the services of RBI.
- Conditional: Conditional exemptions are those exemptions that have a certain limit, condition, or restriction on the nature and extent of the exemption. For example, hotel services are exempt up to a certain extent and not exempt fully.
- Partial: Unregistered people who supply goods within the state to a registered person are exempt from GST under reverse charge only if the aggregate value of supply is not more than Rs.5000 per day.
- Previously GST council imposed a 5% rate of GST on hulled grains. However, later on 11th June 2017, the rate of GST applicable on hulled grains is 0% (nil rate) fixed by GST council at the introduction of GST in July 2017 is 0%
- Cereal grains hulled falls under GST HSN code chapter 1104.
- Cooked eggs is exempted from paying GST, the rate of GST payable on cooked eggs is nil rate.
- Fish, crustaceans, molluscs & other aquatic invertebrates in processed, cured or frozen state are taxable at 5% rate under GST.
- Newspapers containing advertising material has 0% GST rate.
- However, ads attract 5% GST, not the newspapers publishing them.
- Newspapers with or without advertisements are exempted from GST.
List of GST Exemption on Goods
| Types of goods | Examples |
|---|---|
| Live animals | Asses, cows, sheep, goats, poultry, etc. |
| Meat | Fresh and frozen meat of sheep, cows, goats, pigs, horses, etc. |
| Fish | Fresh or frozen fish |
| Natural products | Honey, fresh and pasteurized milk, cheese, eggs, etc. |
| Live trees and plants | Bulbs, roots, flowers, foliage, etc. |
| Vegetables | Tomatoes, potatoes, onions, etc. |
| Fruits | Bananas, grapes, apples, etc. |
| Dry fruits | Cashew nuts, walnuts, etc. |
| Tea, coffee and spices | Coffee beans, tea leaves, turmeric, ginger, etc. |
| Grains | Wheat, rice, oats, barley, etc. |
| Products of the milling industry | Flours of different types |
| Seeds | Flower seeds, oil seeds, cereal husks, etc. |
| Sugar | Sugar, jaggery, etc. |
| Water | Mineral water, tender coconut water, etc. |
| Baked goods | Bread, pizza base, puffed rice, etc. |
| Fossil fuels | Electrical energy |
| Drugs and pharmaceuticals | Human blood, contraceptives, etc. |
| Fertilizers | Goods and organic manure |
| Beauty products | Bindi, kajal, kumkum, etc. |
| Waste | Sewage sludge, municipal waste, etc. |
| Ornaments | Plastic and glass bangles, etc. |
| Newsprint | Judicial stamp paper, envelopes, rupee notes, etc. |
| Printed items | Printed books, newspapers, maps, etc. |
| Fabrics | Raw silk, silkworm cocoon, khadi, etc. |
| Hand tools | Spade, hammer, etc. |
| Pottery | Earthen pots, clay lamps, etc. |
List of GST Exemption on Services
| Types of services | Examples |
|---|---|
| Agricultural services | Cultivation, supplying farm labor, harvesting, warehouse-related activities, renting or leading agricultural machinery, services provided by a commission agent or the Agricultural Produce Marketing Committee or Board for buying or selling agriculture produce, etc. |
| Government services | Postal service, transportation of people or goods, services by a foreign diplomat in India, services offered by the Reserve Bank of India, services offered to diplomats, etc. |
| Transportation services | Transportation of goods by road, rail, water, etc., payment of toll, transportation of passengers by air, transportation of goods where the cost of transport is less than INR 1500, etc. |
| Judicial services | Services offered by the arbitral tribunal, partnership firm of advocates, senior advocates to an individual or business entity whose aggregate turnover is up to INR 40 lakhs |
| Educational services | Transportation of faculty or students, mid-day meal scheme, examination services, services offered by IIMs, etc. |
| Medical services | Services offered by ambulances, charities, veterinary doctors, medical professionals, etc. does not include hair transplant or cosmetic or plastic surgery. |
| Organizational services | Services offered by exhibition organizers for international business exhibitions, tour operators for foreign tourists, etc. |
| Other services | Services offered by GSTN to the Central or State Government or Union Territories, admission fee payable to theatres, circuses, sports events, etc. which charge a fee up to INR 250 |