NIL RATED SUPPLY FROM SUPPLIER & NON GST SUPPLY

[SURYAKANT MITHBAVKAR]

If we received material from unregistered dealer can we treat that Nil Rated Supply under GSTR3B.

[Spudarjunan S]

Dear Sir,

No. Only goods with 0% rate of tax are called Nil rated in the general parlance. Materials received from URD can't said to be a nil rated supply unless the actual rate of tax for such materials is 0%.

[KASTURI SETHI]

I concur with the views of Sh.Spudarjunan S .

[Ganeshan Kalyani]

The product should be classified as per their taxability.

[KASTURI SETHI]

NIL rate is also a rate of duty----held by the Supreme Court in pre-GST era.

AI Summary

Nil-rated supply: supplies from unregistered dealers are not nil-rated unless the goods attract the nil GST rate.
Receipt of goods from an unregistered dealer cannot be treated as a nil rated supply merely because the supplier is unregistered; nil rated denotes a zero tax rate and the product must be classified for its taxability to determine whether the nil rate applies.