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GST Exemptions

Last updated on 05 October, 2021

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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.

 
Latest updates as per the 45th GST Council meeting
  • Export of goods from India via vessel and air are exempted till September 30, 2022.
  • The IGST exemption for imports on lease (where GST is paid on the lease amount) will be extended even to situations where goods reach a new lessee in India upon expiry of the lease, and if the lessor located in SEZ (Special Economic Zone) pays GST under forward charge.
  • The back office sector will no longer have GST. Services outsourced to India or services carried on in India on behalf of foreign entities will not have 18% GST.
  • Coaching services provided by institutions and NGOs under the central sector scheme of 'Scholarships for students with Disabilities' will be exempted.
  • Overloading charges are exempted at a toll plaza.
  • Renting out vehicles by State Transport Undertakings and Local Authorities.
 

Here’s a list of all the exemptions:  

List of exempted goods under GST in India: 

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.  

List of exempted services under GST in India:

 

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



       
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