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?
GST-exempt products
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 are used to manufacture hearing aids, chalk, slates, handlooms, etc.
GST exempted services
- Agriculture-related services, such as harvesting, packaging, storage, supply, and leasing of machinery, are fundamentally excluded from the GST.
- Horse raising is an exclusion from these exempt services.
- Public transit options include metro, metered cabs, auto rickshaws, and more.
- Export of goods and agricultural products from India.
- Farm labour is available.
- Goods transported for less than Rs. 1500 in fees.
- Pre-conditioning, waxing, retail packing, and other related services.
- Foreign government and diplomatic services.
- The provision of midday meal catering, VET clinics, paramedics, and other healthcare and educational services. Also ambulance and charitable services are free from tax.
- Offerings from the RBI, IRDAI, Federal and State Governments, NPS, and more.
- Banking services, such as BSBD accounts, are available through the Pradhan Mantri Jan-Dhan Yojana (PMJDY).
What is the GST exemption limit?
The total turnover is a basic requirement for GST registration. Except for special category states, which are entirely exempt from registration, the GST laws stipulate that any turnover up to Rs. 20 lahks and Rs. 10 lakhs for special category states is entirely 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.
Which are GST exempted categories on amazon?
| Food ● Cereals ● Edible fruits and vegetables (not frozen or processed) ● Edible roots, tubers, fish, and meat (not packaged or processed) ● Tender coconut ● Jaggery ● Unprocessed Tea leaves ● Unroasted Coffee beans ● Seeds ● Ginger ● Salt ● Turmeric ● Betel leaves ● Papad ● Non-branded flour, gram flour, whole flour ● Non-branded natural honey ● Unpacked paneer ● Bread ● Puffed rice ● Eggs ● Dairy products – milk, curd, lassi, buttermilk | Raw materials ● Raw silk, jute, wool ● Silk waste ● Khadi fabric ● Cotton used for khadi yarn ● Raw jute fibre ● Firewood ● Charcoal ● Handloom fabrics |
| Tools/Instruments ● Hearing aids ● Hand tools like spades and shovel ● Tools for agricultural work ● Handmade musical instruments ● Aids and implements for physically challenged people | Miscellaneous ● Books, maps, newspapers, journals ● Non-judicial stamps, postal items ● Drawing or colouring books for children ● Educational services ● Live animals (except horses) ● Human hair, blood, and semen ● Bangles ● Chalk sticks ● Contraceptives ● Earthen pots ● Items used in pooja like idols, bindi, kumkum ● Kites ● Indian national flag ● Organic manure ● Vaccines |
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?
- Agriculturists
- 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
Conclusion
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.