Simplified Guide to GST Exemptions in India:

GST is a goods and services tax in India, but certain goods aren't taxed. They are referred to as "exempted supplies."

Handbook on Exempted Supplies under GST

Janvi Koli

May 2, 2025

Last update on May 2, 2025

Simplified Guide to GST Exemptions in India GST is a goods and services tax in India, but certain goods aren't taxed. They are referred to as "exempted supplies."

Full exemptions: No GST at all
Partial exemptions: Reduced tax rates or limitations on claiming back taxes paid on purchases

The government makes the choice as to what gets exempted, typically to assist individuals in being able to afford necessary items or fund necessary services. Some typical exempted goods are:

Basic healthcare
Education services
Fresh vegetables and fruits
Services from charitable organizations

If you sell exempted goods, you don't charge GST to customers. You also can't, however, claim back the GST paid on related purchases. Don't mix up exempted supplies with zero-rated supplies (such as exports). Both charge no GST, but exporters still receive refunds of taxes paid. Though exemptions reduce the cost for customers, they may complicate tax documentation for businesses. This is as per the ICAI's Handbook on Exempted Supplies under GST, 2025. Refer to the official PDF for Complete information

About Author

Janvi Koli

Digital Marketing Executive

Janvi is an expert content writer focused on taxation and compliance. She writes insightful articles on income tax, GST, company law, and government policies. Known for her practical approach, she simplifies complex regulations to help readers stay informed and compliant. She can be reached at [email protected]