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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:-

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:

NIL RATED

• 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

DIFFERENCES