Blogs

Blogs


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:

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 cant 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

GST Applicable rate

Type of supply

Eligibility of ITC

NIL Rated

0%

Everyday items

Yes

Exempted

-

Basic essential

No

Zero Rated

0%

Overseas supplies

Yes

Non GST

-

GST is not applicable

No