Non Zero rated supply

[Guest]

Dear Sir,

What do you mean by Non- Zero Rated supply of Services ?

[Himansu Sekhar]

Please refer to the context you need the reply

[KASTURI SETHI]

Yes. The query is incomplete. Full details are required.

[Guest]

Dear sir

Further to the above question the meaning of Adjusted Total Turnover as follows. In this case what do you mean by non-Zero-rated supply of services ?

“Adjusted Total Turnover” means the sum total of the value of-

(a) the turnover in a State or a Union territory, as defined under clause (112) of section 2, excluding the turnover of services; and

(b) the turnover of zero-rated supply of services determined in terms of clause (D) above and non-zero-rated supply of services,excluding-

(i) the value of exempt supplies other than zero-rated supplies; and

(ii) the turnover of supplies in respect of which refund is claimed under sub-rule (4A) or sub-rule (4B) or both, if any, during the relevant period.

[KASTURI SETHI]

Non-zero-rated supply means other than export of goods or services or both and other than supplies made to SEZ unit or SEZ Developer. In simple words, supplies made for home consumption (taxable and exempted both). It is pertinent to mention that zero rated supply is not exempted. Zero rate is also a rate of duty. Such supply is tax-free but for export. On the other hand, non-zero rated supply means the supply is not tax-free. Leviability of tax is there on non-zero-rated supply.

[Ganeshan Kalyani]

Yes, non-zero rated supply means supply other than export i.e. domestic supply.

AI Summary

Clarification on 'Non-Zero Rated Supply of Services' under GST: Domestic supplies taxed, excluding exports and SEZ supplies. A query was raised about the meaning of 'Non-Zero Rated supply of Services' under the Goods and Services Tax (GST) framework. Respondents clarified that non-zero-rated supply refers to domestic supplies, excluding exports and supplies to Special Economic Zones (SEZ), which are subject to tax. It contrasts with zero-rated supplies, which are tax-free but primarily for export purposes. The discussion highlighted that non-zero-rated supplies include both taxable and exempt domestic supplies, and they are not exempt from tax liability. The term was further explained in the context of 'Adjusted Total Turnover' in GST calculations.