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Questions and Answers
What constitutes an exempt supply under GST?
Which section of the CGST Act empowers the government to exempt supplies?
What type of exemption can be granted under the GST framework?
Which of the following items is NOT exempt from GST?
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What documentation can the government issue to exempt any supply of goods or services from GST?
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Which of the following services is exempt from GST?
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Which section of the IGST Act provides the power to grant exemptions?
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Which of these is exempt from GST regarding services?
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When are services provided by the Employees’ State Insurance Corporation exempt?
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Which agricultural service is taxable under GST?
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What is the GST treatment for renting or leasing agro machinery?
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Which of the following services provided by educational institutions is exempt from GST?
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Which type of educational institution is considered exempt?
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What is the GST treatment for the transportation of students to higher secondary schools?
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Which healthcare service is not exempt from GST?
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What is the GST treatment for services provided by agricultural Produce Marketing Committees?
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Study Notes
Exempt Supply Under GST
- An exempt supply is one that attracts a nil rate of tax or is wholly exempt, distinguishing it from taxable supplies.
- Non-taxable supply refers to goods or services not leviable under the CGST/IGST Act, indicating no tax liability.
Sections of the CGST Act
- The power to exempt supplies is granted under Section 11 of the CGST Act, allowing the government discretion in tax arrangements.
Exempt Supplies List
- Common exempt supplies include unpacked food grains, fresh milk, and eggs.
- Unlike exempt goods, items such as gold, silver, motor vehicles, and alcohol for human consumption do not qualify for exemption.
Power to Grant Exemptions
- Under Section 6 of the IGST Act, the government has the authority to grant exemptions from GST.
- Notifications are the primary method used by the government to communicate exempt supplies.
Types of Exemptions
- Exemptions from GST can be absolute or conditional, providing flexibility based on circumstances.
Exempt Goods
- Fresh milk and fresh vegetables are examples of goods exempt from GST.
- Unbranded atta and lassi also fall into the category of exempt items, contrasting with packaged or processed foods.
Exempt Services
- Charitable activities by entities registered under Section 12AA of the Income Tax Act are exempt from GST.
- Services provided by a charitable trust for public health are also exempt, demonstrating the focus on social welfare.
Agricultural Exemptions
- Services like warehousing of rice are exempt, supporting agricultural logistics without tax burden.
- Agricultural extension services, contributing to farmer education, are exempt, emphasizing agricultural support.
Education-Related Exemptions
- Educational services provided to students, faculty, and staff are exempt from GST, underlining the value placed on education.
- Services related to conducting degree courses by colleges are exempt, while private coaching for competitive exams is not.
Healthcare-Related Exemptions
- Healthcare services offered by clinical establishments are exempt from GST, ensuring access to essential health services.
- Specific services may not be exempt, highlighting the need for clarity in healthcare tax regulations.
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Description
Test your understanding of exempt supplies, non-taxable supplies, and GST exemptions. Learn the basics of GST exemptions and how they apply to different supplies.
