Exempt Supply Vs Nil Rate Supply

[Krishna Murthy]

Sir, what is the difference between Nil Rated Supply and Exempt Supply?

By definition u/s 2(47) Exempted Supply includes Nil Rated Supply but what is the exact significance of these two terms under GST.

AI Summary

Understanding Nil Rated vs. Exempt Supply under GST: Key Differences and Application Insights A discussion on a forum addresses the distinction between Nil Rated Supply and Exempt Supply under the Goods and Services Tax (GST). Nil Rated Supply refers to goods or services taxed at a 0% rate by the tariff act, while Exempt Supply is exempted through government notifications or orders. Nil Rated Supplies do not have conditions attached, unlike Exempt Supplies, which can be conditional or absolute. Participants agree that the Customs Tariff Act, 1975, is relevant for GST purposes, and a Bill of Supply should be used for both supply types. The discussion highlights differences in definitions and application under GST.