TaxTMI 
TaxTMI 
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.
Exempt Supply Vs Nil Rate Supply
01 Jun 2019 
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Exempt supply vs nil rated supply: source and conditionality differ; issue a Bill of Supply for such supplies.
Nil rated supply is determined by tariff classification (Customs Tariff Act) where the rate is nil; exempt supply is created by government notification or order and may be conditional or absolute. Treating non taxable items as "exempt" may be a defective definition. For exempt or nil rated supplies, a Bill of Supply should be issued. (AI Summary)
Nil rated supply is determined by tariff classification (Customs Tariff Act) where the rate is nil; exempt supply is created by government notification or order and may be conditional or absolute. Treating non taxable items as "exempt" may be a defective definition. For exempt or nil rated supplies, a Bill of Supply should be issued. (AI Summary)