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GST Exemptions

Last updated on 27 September, 2017

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Exemptions in GST

The government has classified certain goods and services as exempt from GST. Unlike with zero-rated goods and services, business owners cannot claim ITC for the sale of exempted goods and services. Here’s a list of all the exemptions:  

Exempted goods:

 

Food

Cereals, edible fruits and vegetables (not frozen or processed), edible roots and tubers, fish and meat (not packaged or processed), tender coconut, jaggery, tea leaves (not processed), coffee beans (not roasted), seeds, ginger, turmeric, betel leaves, papad, flour, curd, lassi, buttermilk, milk, and aquatic feeds, and supplements.  

Raw materials

Raw silk, silk waste, wool (not processed), khadi fabric, cotton used for khadi yarn, raw jute fiber, firewood, charcoal, and handloom fabrics.  

Tools/Instruments

Hearing aids, hand tools (such as spades and shovels), tools used for agricultural purposes, handmade musical instruments, and aids and implements used by physically challenged people.  

Miscellaneous

Books, maps, newspapers, journals, non-judicial stamps, postal items, live animals (except horses), beehives, human blood, semen, bangles, chalk sticks, contraceptives, earthen pots, props used in pooja (including idols, bindi, kumkum), kites, organic manure, and vaccines.  

Exempted services:

 

Agricultural services

This includes all services related to agriculture except the rearing of horses. Exempt services include cultivation, harvesting, supply of farm labor, fumigation, packaging, renting or leasing of machinery for agricultural purposes, warehouse activities, and services by an Agricultural Produce Marketing Committee or Board that is provided by an agent for the sale or purchase of agricultural produce.  

Transportation services

To know more about the services exempted from GST, view CBEC’s official list.



       
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