With the introduction of GST, the goods and services have been classified into Nil Rated, Exempted, Zero Rated and Non-GST supplies. The Purchase or Sales of these goods to a local or interstate customer does not attract GST, and can be recorded using a Purchase / Sales voucher. Let us take a look at what distinguishes each of them with some examples:
Type of Supply
Eligibility for ITC
Grains, Salt, Jaggery, etc.
Bread, Fresh Fruits, Fresh Milk, Curd etc.
Overseas supplies, Supply to Special Economic Zones (SEZ) or SEZ Developers
Supplies for which GST is not applicable but can attract other taxes
Petrol, Alcohol etc.
In case of above Items and Goods , the option Nil Rated / Exempt has to be selected as the Taxability in the GST Details screen of the item or item group master.
Sold the following items in Cash which are Nil Rated and Exempted
Sale Invoice of above goods are given below :
GST Details of the above invoice :
When you Press Ctrl + I (More Details) and select GST – Tax Analysis from Additional Details and Press Alt + F1 for Details…you will see the GST Analysis as below by default.
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