• Agricultural products:Unprocessed agricultural produce like food grains, fruits, vegetables, milk, meat, fish, eggs, etc.
• Essential items:Salt, jaggery, curd, honey, unbranded bread, educational items like books, newspapers, maps, etc.
• Specific goods:Human blood, organs, tissues, live animals (except horses), bio-manure, organic fertilisers, etc.
• Services by certain entities:Activities by charitable institutions, services by the Central or State Governments, etc. under GST Act 2017                 

Nil-rated Goods:

• Certain notified goods exported out of India or supplied to Special Economic Zones (SEZs).
• Goods covered under zero-rated supply, where you can claim Input Tax Credit (ITC) but no GST Act 2017 is levied. Examples include goods for the United Nations, diplomatic missions, etc.

Goods outside GST purview:

• Alcohol for human consumption
• Petroleum products like petrol, diesel, natural gas
• Electricity

EXAMPLE

Once you tell me the state, I can provide you with a list of goods that are exempt from GST Act 2017 along with relevant resources for further information.

For example, if you’re interested in Tamil Nadu, here are some broad categories of exempt goods:

• Basic necessities:Unprocessed food items like cereals, fruits, vegetables, milk, eggs, etc.
• Agricultural implements:Shovels, spades, agricultural tools, etc.
• Educational materials:Books, newspapers, journals, maps, etc.
• Religious items:Earthen pots, clay lamps, pooja props, etc.

However, this is just a general overview. For a more comprehensive and up-to-date list specific to Tamil Nadu, please let me know under GST Act 2017

FAQ QUESTION

Q: Goods Exempt from Tax under GST Act 2017

Here are some of the most frequently asked questions about goods exempt from tax under the GST Act 2017

Q: What types of goods are exempt from GST?

A: Several categories of goods are exempt from GST Act 2017 in India. Some prominent examples include:

• Essential food items:Unbranded cereals, pulses, milk, fresh fruits and vegetables, eggs, honey, jaggery, etc.
• Agricultural products:Live poultry and fish, raw silk, unprocessed cotton, jute, etc.
• Educational items:Books, newspapers, printed music sheets, school bags, etc.
• Life-saving drugs and medical equipment:Most essential medicines, prosthetics, orthopaedic appliances, etc.
• Items used for religious purposes:Idols, holy ash, incense sticks, etc.
• Funeral and burial services:Services related to cremation, transportation of the deceased, etc.

Q: Are goods exempted from GST also exempt from input tax credit (ITC)?

A: Not necessarily. In some cases, even though the supply of goods is exempt from GST, the supplier can still claim ITC on the purchase of goods or services used for making that supply. However, there are also cases where both the supply and the input tax are exempt GST Act 2017.

Q: What happens if I sell goods that are exempt from GST?

A: If you sell goods that are exempt from GST Act 2017, you do not need to charge any GST on the sale. However, you must still mention the goods as “exempt supply” on your tax invoice. You can also claim ITC on the purchase of goods or services used for making the exempt supply, subject to the specific provisions of the GST Act 2017.

Q: Who should I contact if I have any further questions about GST exemptions?

A: If you have any further questions about GST exemptions, you can consult a tax professional or visit the official website of the CBIC for more information and guidance.

CASE LAWS

Goods Exempt from Tax under the GST Act, 2017

There are several categories of goods exempt from Goods and Services Tax (GST) under the GST Act, 2017. Here’s a breakdown:

Schedule I: This schedule lists specific goods exempt from CGST, SGST, and IGST. Some examples include:

• Agricultural produce in its original state (excluding processed or packaged items)
• Fresh milk and curd
• Natural honey
• Eggs
• Live poultry
• Meat and fish, fresh/chilled/frozen
• Newspapers and magazines
• Books and printed materials
• Education-related services

Schedule II: This schedule lists goods exempt from CGST and SGST but attracts IGST at the rate of 5%. Examples include:

• Raw silk
• Coir pith
• Bamboo
• Tea leaves
• Coffee beans

Schedule III: This schedule lists goods exempt from CGST and IGST but attracts SGST at the rate specified by the state. Examples include:

• Non-alcoholic beverages (excluding aerated water)
• Flour & atta
• Rice
• Pulses
• Milk powder

Notifications: The Government also issues notifications from time to time exempting certain goods or services from GST for specific periods or under specific conditions.

Case Laws: While the schedules and notifications define the primary exemptions, case laws interpret and clarify ambiguities within these provisions. Here are some recent examples:

• Interglobe Aviation Ltd. v. Commissioner of Customs:This case clarified that re-imported goods after repair are exempt from IGST under Notification No. 45/2017.
• Suncraft Energy Pvt Ltd v. Assistant Commissioner:This case ruled that buyers adhering to Section 16(2) of the GST Act 2017 are entitled to claim Input Tax Credit (ITC) and are not responsible for discrepancies in GST returns due to the seller’s default.
• Gali Bhanu Prakash vs. The State of Andhra Pradesh:This case highlighted the conditions for claiming exemption on food grains used for religious purposes GST Act, 2017.