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Nil rated vs zero rated s

Is Nil rated supplies is same to Zero rated supplies, ? If not give me examples of Nil rated supplies.


Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

16-Jun-20 13:44

84

Answers (12)

In case of NIL rated supply, the tariff is at NIL rate without any exemption notification but Zero rated supply tariff is 0% by exemption notification. say- Basic essentials are Nil rated and supplies to SEZ are notified as exempted so no tax.


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

16-Jun-20 16:45

KEERTHI PRIYA

In case of NIL rated supply, the tariff is at NIL rate without any exemption notification but Zero rated supply tariff is 0% by exemption notification. say- Basic essentials are Nil rated and supplies to SEZ are notified as exempted so no tax.

Would you please mention that exemption notification number which mentioning zero rated supplies for the reference.


Thread Starter

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

16-Jun-20 16:54

Notification no. 64/2017 Cus dated 05.07.2017 through which IGST was exempted for SEZ unit or SEZ developer.


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

16-Jun-20 18:07

KEERTHI PRIYA

Notification no. 64/2017 Cus dated 05.07.2017 through which IGST was exempted for SEZ unit or SEZ developer.

Yes madam, I saw it, would you please provide the notification details which mentioning the exports .[as 2nd one in zero rated supplies]


Thread Starter

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

17-Jun-20 01:01

Thread Starter

Pranav Connecting...

Yes madam, I saw it, would you please provide the notification details which mentioning the exports .[as 2nd one in zero rated supplies]

Section 16 of IGST Act clearly mentioned , but to clarify you Nil Rated Supply: Goods or services on which GST rate of 0% is applicable are called NIL rated goods or services. Supply of any of these goods or Services is a nil rated supply under GST. Admissibility of Input: NO Input Tax Credit available in case NIL rate supplies Eg: Supply of grains, salt, jaggery etc (Essential Supplies are mostly covered under this classification) â?¢ Zero Rated Supply: 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%. Admissibility of Input: Yes, Input tax credit can be availed. Eg: Export of Goods & Services to foreign countries. Supply of Goods to SEZ Developers / SEZ Entities. (To incentivise Export entities to get foreign exchange by exporting the goods/services to abroad) Also exemption need not be always through notification may be through other modes also like order in gazette..


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

17-Jun-20 12:00

Thread Starter

Pranav Connecting...

So you saying that export exemption most probably through order in gazatte.

For Exports- Section-16 of IGST act, exports are included in Zero rated supply no need of notification or order, but for others as board think respective supply will not liable to tax, it may notify through notification or Order in gazette, Notice...


KEERTHI PRIYA

KEERTHI PRIYA

CA Inter

695

17-Jun-20 13:23

Perfect ð???


Shiva Teja

Shiva Teja

Faculty

01-Jul-20 13:19

Shiva Teja Faculty

Perfect ð???

Nil rate supply-tarriff is at Nil. Zero rate supply-exempted by Notification or in act + also tax free in entire value chain of the supply since there allowing ITC . Happy CA day Sir...


Thread Starter

Pranav Connecting...

Pranav Connecting...

CA Inter

4K+

01-Jul-20 13:51

Zero rate supply covers only 1. Exports 2. Supplies to SEZ In case of Zero rated supplies no out tax but ITC is allowed Itâ??s a benefit given by law.


Shiva Teja

Shiva Teja

Faculty

01-Jul-20 13:53

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