Question

Difference between exempt supply and zero rated supply under gst

Answer 1

Exempted

This supply includes items which are used for everyday purposes. Since they are basic essentials, they do not attract any GST at all. You will not be able to claim any ITC on such supplies. Some examples are, bread, fresh fruits, milk, curd, etc.

Zero-Rated

Supplies made overseas and to Special Economic Zones (SEZs) or SEZ Developers come under the zero-rated supplies. This supply attracts a GST of 0%. For such supplies, the ITC can be claimed.