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:
Supply |
GST Applicable |
Type of Supply |
Eligibility for ITC |
Examples |
NIL Rated |
0% |
Everyday items |
No |
Grains, Salt, Jaggery, etc. |
Exempted |
- |
Basis essentials |
No |
Bread, Fresh Fruits, Fresh Milk, Curd etc. |
Zero Rated |
0% |
Overseas supplies, Supply to Special Economic Zones (SEZ) or SEZ Developers |
Yes |
- |
Non- GST |
- |
Supplies for which GST is not applicable but can attract other taxes |
No |
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.
Setting Nil-Rated & Exempted items and Goods :
 85
Transactions:
Purchase the following items in Cash from Registered Dealer which are Nil Rated and Exempted
Name of items |
Quantity |
Rate |
Value |
Moong Dal |
70 Kg. |
85 |
5950 |
Salt |
25 kg. |
25 |
625 |
Bread |
60 Pcs. |
22 |
1320 |
Fruits |
20 Kg. |
110 |
2200 |
|
|
Total |
10,095 |
Purchase Invoice of above goods are given below :
 86 |
