Tax classification under GST
- July 2, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Tax classification under GST
Subject :Economy
Section: Fiscal Policy
With the introduction of GST, the goods and services have been classified into Nil Rated, Exempted, Zero Rated and Non-GST supplies.
- Nil Rated
- This type of supply attracts a GST of 0%.
- Input tax credit cannot be claimed on such supplies.
- Example-grains, salt, jaggery, etc.
- Exempted
- This supply includes items which are used for everyday purposes.
- They are basic essentials, and do not attract any GST at all.
- Input tax credit cannot be claimed on such supplies.
- Some examples include bread, fresh fruits, milk, curd, etc.
- Zero-Rated
- Supplies made overseas and to Special Economic Zones (SEZs) or SEZ Developers come under the zero-rated supplies.
- This supply attracts a GST of 0%.
- Input tax credit can be claimed on such supplies.
- Non-GST
- Supplies which don’t come under the scope of the GST are termed as Non-GST supplies.
- These supplies can attract taxes other than the GST as per the jurisdiction of the state or the country.
- Some examples of such supplies include alcohol for human consumption, Petroleum products such as petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel etc., electricity has been kept outside the purview of GST at present.
Tips: What is Input Credit? “Input Tax Credit” is an aggregate total amount of tax paid by a registered dealer on the total purchases made by him within the State from other dealers. Salient features of Input tax credit:
Miscellaneous -GST:
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