In India, the government issues exemption notifications to specify goods or services that are exempt from Goods and Services Tax (GST) or subject to a lower rate of GST. These exemptions are granted to achieve various policy objectives, such as providing relief to specific industries, promoting certain types of economic activities, or supporting social welfare initiatives.
Please note that the list may not be exhaustive, and specific exemptions may change over time due to government policy revisions. For the most up-to-date information, it’s recommended to refer to official government notifications or consult with tax professionals.
General Categories of Exempted Goods:
Essential Food Items:
Basic food items like cereals, pulses, fruits, vegetables, meat, fish, milk, and other essential food products are often exempt from GST.
Various agricultural inputs like seeds, fertilizers, pesticides, agricultural machinery, etc., may be exempted to support the agriculture sector.
Healthcare and Medical Supplies:
Many healthcare services, as well as medical supplies like medicines, medical devices, and healthcare equipment, may be exempted or subject to lower rates.
Educational books, materials, and services related to education are often granted exemptions to support the education sector.
Certain petroleum products like crude oil, natural gas, aviation turbine fuel (ATF), etc., may be exempted or subject to specific rates.
Goods intended for export are often zero-rated (meaning, the rate of tax is 0%), effectively providing an exemption.
Specific Goods for Social Welfare:
Goods used for social welfare initiatives, such as supplies to the Red Cross Society or relief operations, may be exempted.
Handloom and Handicraft Products:
Handloom and handicraft products may be subject to concessional rates or exemptions to support traditional artisans.
Items for Persons with Disabilities:
Goods designed for use by persons with disabilities, such as assistive devices and rehabilitation aids, may be exempted.
Renewable Energy Equipment:
Equipment and components for generating renewable energy, such as solar panels and wind turbines, may be subject to concessional rates or exemptions.
Raw Materials for Essential Industries:
Raw materials used in industries like textiles, defense, etc., may be subject to concessional rates or exemptions to support these sectors.
Cultural and Sporting Goods:
Goods related to cultural activities and sports, such as artworks, antiques, sports equipment, etc., may be subject to concessional rates or exemptions.