Let’s Understand List of GST Exempted / Non-GST Goods in Details
Under different taxation systems, a host of goods or services is exempt from tax owing to socio-economic reasons. For instance, under the service tax regime, clinical and education services were exempt from service tax. Similarly, the sale of life-saving drugs or books meant for reading in different state governments were exempt from taxes.
Like all such taxes, there are few exceptions even under GST where goods or services are exempt from tax liability. Such exemptions on specified goods or services are granted by the government based on certain conditions. Hence, while determining the tax liability under GST, one needs to check for not only the goods or services that are chargeable to GST. But, one also needs to look into the goods or services that are exempt from tax .
Thus, the taxpayers need to understand not only the provisions regarding exemptions but also their implications to avoid any wrong application. So, before jumping to the list of NON GST goods, let’s first define what is an exempt supply under GST?