Supplies under GST

[Asked by Guest]

What is the difference between Nil rate, Zero percent and Zero rated supplies under GST.

[YAGAY and SUN]

https://www.taxtmi.com/article/detailed?id=7231

[KASTURI SETHI]

(A) As per Section 2 (44) of drafter Model GST Act, “exemptsupply” means supply of any goods and/or services which are not taxable under this Act and includes such supply of goods and/or services which attract nil rate of tax or which may be exempt from tax under section 11 ;

(B) As per Section 16 of draft IGST Act, 2016 . Zero rated supply

(1) “zero rated supply” means any of the following taxable supply of goods and/or services, namely -

(a) export of goods and/or services; or

(b) supply of goods and/or services to a SEZ developer or an SEZ unit.

(2) Subject to provisions of sub-section (3) of section 17 of the CGST Act, 2016, credit of input tax may be availed for making zero-rated supplies, notwithstanding that such supply may be an exempt supply.

 

(C) In my view, literally, there is no difference between ZERO AND NIL.' 0' is numerical and 'NIL' is in words.

Zero percent stands for turnover below threshold exemption limit

'NIL' is also rate of duty.

Interpretation against 'C' above is my interpretation.

[Nash Industries I Pvt Ltd]

Nil rate or 0% is the rate of tax on the output supplies. Its also called as Exempt supplies. No set off (credit) is available on the tax paid on the input supplies if the tax is Nil.

Zero rated supplies means those supplies where the out put tax is zero but are set off (Credit) is available.

This is similar to the current Excise or VAT.

Exports are treated as zero rated supplies.

Hope,its clarified.

Regards

S.Ramaswamy

Is a person dealing only in Zero rated supplies (export of services) liable to register under GST even if they do not desire to claim input tax credit?

AI Summary

Zero rated supplies permit input tax credit on zero rated transactions, unlike nil rate exempt supplies where credit is generally denied.
Zero-rated supplies are taxable supplies charged at zero where input tax credit may be claimed (notably exports and SEZ supplies), whereas nil-rate or zero percent supplies are treated as exempt supplies on which input tax credit is generally not available; draft GST/IGST provisions distinguish these categories by linking zero-rating to credit entitlement and exempt/nil-rating to non-taxability without set-off.