Types of supply

There are many types of supply but these 4 have similarities and differences too.Due to the similarities in names there is a lot of confusion and people do not differentiate its difference. In order to overcome the confusion , let us understand its meaning ,differences and examples.

Now let us understand and what are the 4 types of supply that we talked above.These are:-

NIL Rated Supply

Exempted supply

Zero Rated Supply

Non GST Supply

There are similarity between 4 , that GST Amount in above 4 is 0 but there are differences too.

Now , let us understand one by one:


  • Supplies that are taxable having 0% tax rate.

  • ITC can be claimed.

  • Example: salt , grain, jaggery etc.

Exempt supply

  • Supplies that are taxable but do not attract GST.

  • ITC can’t be claimed.

  • These supplies Include items which are used for everyday purposes. Since they are basic essentials, they do not attract any GST at all.    

  • Examples: bread, fresh fruits, milk, curd etc.

Zero Rated Supply

  • Supplies made Overseas, to SEZs or SEZs Developers.

  • ITC can be claimed  .     

  • Tax rate is 0%.

  • Example: Exports, SEZ

Non GST Supply

  • These supplies do not come under the scope of GST Law.

  • However, these supplies can attract taxes other than GST  as per the jurisdiction of the state or the country.

  • As it is Non GST supply, ITC will not be applicable.

  • Examples: Alcoholic Liquor for human consumption,Petrol etc



GST Applicable rate

Type of supply

Eligibility of ITC

NIL Rated


Everyday items




Basic essential


Zero Rated


Overseas supplies


Non GST 


GST is not applicable