Difference between Nil rated and Zero rated supplies in GST

Nil Rated Supplies-

This type of supply attracts a GST of 0%. Input tax credit can be claimed on such supplies. Some items which are nil rated include grains, salt, jaggery, etc.

Exempted Supplies-

This supply includes items which are used for everyday purposes. Since they are basic essentials, they do not attract any GST at all. You will not be able to claim any ITC on such supplies. Some examples include bread, fresh fruits, milk, curd, etc.

Zero Rated Supplies-

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%. For such supplies, ITC can be claimed.

Non GST

Supplies which don’t come under the scope of the GST are termed as Non-GST supplies. However, these supplies can attract taxes other than the GST as per the jurisdiction of the state or the country. Some examples of such supplies include petrol, alcohol, etc.