The Indian government established certain requirements that must be met by enterprises and individuals in order to register under the GST regulations as of July 1, 2017.
However, some products and services may not need to register for GST. Additionally, some goods and services are exempt from paying tax, which is known as an “exempt supply” under the GST.
It is essential to adhere to the GST exemption list in order to comprehend the specifics of the exemption.
We, therefore, provide this article to clarify GST-exempt products in India.
Let’s start without further delay.
What is a GST exemption?
Another aspect of comprehending the taxability of goods and services is knowing if a good or service is exempt from GST registration. In essence, a business’s ability to exempt itself from GST is based on its total annual revenue.
The requirement for GST registration was previously waived for businesses with a maximum annual revenue of Rs. 20 lakh. For states in the northeast or those with mountains, such as Meghalaya, Sikkim, Mizoram, Arunachal Pradesh, Nagaland, Himachal Pradesh, Manipur, Assam, Tripura, Uttarakhand, and Jammu & Kashmir, the sum was Rs. 10 lakhs.
What products are GST-exempt?
A list of India’s GST-exempt products can be found in the section below:
- Vegetables such as potatoes, onions, and other legumes that are fresh.
- Fish, eggs, fresh milk, and other products are not subject to GST.
- Melons, grapes, ginger, garlic, unroasted coffee beans, unprocessed green tea leaves, and more.
- Food goods like rice, hulled cereal grains, wheat, corn, etc. that are not packaged in branded containers
- elements, such as human blood.
- Raw silk, khadi fiber, unspun jute fiber, etc.
- Parts used in the manufacture of hearing aids, chalk, slates, handlooms, etc.
What is the GST exemption limit?
The total turnover is a basic requirement for GST registration. Except for special category states, which are completely exempt from registration, the GST laws stipulate that any turnover up to Rs. 20 lakh and Rs. 10 lakh for special category states is completely exempt from GST. Any turnover exceeding these amounts, however, is required to be registered.
What is the minimum turnover for GST?
If a company’s total annual revenue exceeds Rs. 20 lakhs (or Rs. 40 lakhs for a seller of goods), it must register for the goods and services tax. For North Eastern and hilly states designated as special category states, this ceiling is fixed at Rs. 10 lakhs.
FAQs: GST exemption products
1. Can I sell online without GST?
The GST Council has decided to simplify the procedure for intra-state purchases conducted through online shopping sites.
These suppliers will no longer be required to register for GST if their annual revenue for goods and services is less than Rs. 40 lakh and Rs. 20 lakh, respectively. The implementation of this would start on January 1, 2023.
2. Do startups have to pay GST?
In some scenarios, GST registration is necessary for startups. Such as:
- Possessing pre-GST tax registrations (Excise, VAT, Service Tax, etc.)
- The company generates more than Rs. 40 lakhs in annual revenue, and Rs. 20 lakhs in the North-Eastern States (J&K, Himachal Pradesh, and Uttarakhand)
- Casual Taxable Person
- Startups paying taxes using the Reverse Charge Mechanism as Non-Resident Taxable Persons
- Startups for E-Commerce Aggregators
- Startups that sell goods or services through e-commerce portals or to e-commerce aggregators must also register for GST and complete GST filing.
- Provider of data access or recovery services
- TDS/TCS deductor
3. Who needs no GST registration?
- People who fall within the Threshold Exemption Limit
- people producing a nil-rated or exempt supply of goods and services
- Individuals making deliveries of goods and services that are neither taxed nor covered by the GST
- Not an act of supply of goods or services
- Persons who only create goods subject to reverse charge
We hope the list of GST-exempt products is helpful for you. If you have any queries on GST, do let us know and reach out to our expert team. For further details on GST-related topics, visit our website, InstaFiling.
We are always happy to help you.