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We all know about GST. Every item we buy comes with a GST tax. But is it entirely true? Apparently not. There’s an entire list of items that are GST-exempt or comes at a GST-free cost. Check out the blog to learn more about them.
According to Cleartax, GST or Goods and Services Tax is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. It is a single domestic indirect tax law for the entire country and the amount depends on the goods and services availed.
Most of us know about it. Today while selling or buying anything GST is in the back of everyone’s mind. So much so that we’ve got habituated to calculating a product’s cost after adding its GST rate.
But here’s an interesting fact: Not all products come with GST.
Surprised? Most of you maybe. It’s a lesser-known fact that GST is not applicable to every product sold in the market. There’s a whole list of items which comes at a GST-free price. Let’s understand how and what are these items.
GST Categories
This maybe new to most of you, but yes, there are two different product categories regarding taxation - GST levied and GST exempt. Products upon which GST is applied are GST levied products, and those which are exempted from tax liability are called GST exempt products. The GST exemption can be for specific businesses, goods and services.
Let’s learn more about GST exempt products on Amazon.
How is GST exempted?
There are certain cases only under which GST exemptions are allowed. As per Section 6 and Section 11 of the GST Act, there are three reasons for exempting GST from any product:
General exemption: When it feels necessary for the public interest, the Central Government can grant general exemption completely or partially on the recommendations of the GST Council. This exemption may be either absolute or conditional as specified under the notification.
Special Order: Under certain cases, the GST council may recommend an exemption to the Central or any State Government, and in such cases an exceptional exempt may be applied by the Central or any State Government by special order in each case.
Notification: The exemption is granted on specific goods through an official notification.
If a product category on Amazon falls under any of these criteria, then that will be considered as a GST exempt product.
There are mainly two types of exemption from GST for goods:
● Absolute exemption: This is an exempt without any terms and conditions. In the absolute exemption, the supply of a specific good is GST exempt irrespective of who the supplier or the receiver is and whether the good is supplied intrastate or interstate.
● Conditional exemption: There are specific terms and conditions specified in the GST Act, amendment or notification, under which the goods can be exempted from GST.
List of GST exempt products on Amazon.
Based on all the conditions and criteria mentioned above, here’s the list of GST exempt products categories on Amazon:
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