GST exemption applies to specific goods and services, as well as businesses based on their annual turnover. The exemptions are granted by the government, typically based on recommendations from the GST Council, to benefit the public interest
Goods exempted under GST
Essential food items: Unbranded fresh fruits, vegetables, milk, eggs, honey, salt, and flour.
Agricultural products: Fresh ginger, turmeric, and seeds for planting.
Raw materials: Unprocessed raw silk, unspun jute fiber, and raw wool.
Books and publications: Printed books, newspapers, and journals.
Medical supplies: Human blood, plasma, and contraceptives.
Handloom and handicrafts: Certain items made by specially-abled persons and traditional artisans.
Services exempted under GST
Healthcare services: Provided by clinical establishments, authorized medical practitioners, and ambulance services.
Educational services: Provided by educational institutions to students, faculty, and staff, including transportation and mid-day meal services.
Agricultural services: Labor supply for farms, warehousing of agricultural produce, and renting of agricultural machinery.
Transportation services: Public transport by metro, bus (non-AC), or auto-rickshaws. Also includes transporting specific goods like milk and newspapers.
Charitable and religious services: Religious ceremonies and services by entities registered under Section 12AA.
Government services: Provided by the Central and State Governments and local authorities, with some exceptions.
Turnover-based GST exemption
For goods: The exemption limit for annual turnover is generally ₹40 lakhs. For special category states, the limit is ₹20 lakhs.
For services: The exemption limit for annual turnover is ₹20 lakhs in most states, and ₹10 lakhs in special category states.
Tushar Tyagi,
Rupesh Mangal & Associates
CHARTERED ACCOUNTANTS