GST or Goods and Service Tax is applied to different items in India to enhance tax compliance and transparency by bringing the entire country under one tax regime. It promotes the uniform distribution of tax rates on various items in India.Â
There are different GST rate slabs in India, 0 GST rate items, 12 GST items, 18 GST items, 28 GST items, and more. These GST rate slabs are applied based on the nature of products and services. Let us know more about 0 GST rate items in India.
What is Zero Rated Supply in GST?
Zero rated supply in GST are the goods and services that are not eligible for GST. These items are exempted from the GST. Generally, these items are essential goods and services used more frequently, and hence to make them affordable, the government lays off the GST on such items. For instance items like Milk and dairy products, fresh fruits and vegetables, natural honey, bread (unbranded), flour (unbranded), etc.
Key TakeawaysÂ
- 0 GST rate items are exempted from GST and hence are not taxed.
- The zero GST items are generally essential items such as Milk and dairy products, fresh fruits, sanitary napkins, khadi products, vegetables, natural honey, bread (unbranded), flour (unbranded), etc.
- The 0 gst rated items are exempted from taxes to promote affordability and specific sectors in the country under Make in India.
Why Government Exempt 0 GST Rate Items From Taxation?
This question must be coming to your mind why does the government exempt these items from taxation? However, they do, especially on certain items for the following reasons.
- The main objective of zero rated supplies is to make Indian exports more competitive in the global market.Â
- Essential items like food, healthcare, and education are daily necessities, and hence, to make them affordable for everyone, these items are exempted from taxation and kept under the 0 GST rate.
- To promote economic equality and reduce the financial burden on lower income households, lowering the cost of essential items proves to have a positive impact.
- The government also keeps certain items in 0 GST rate supply to promote them. Most of these items are Indian manufactured, and to promote products made in India, such as Khadi and Handloom, the government lays off taxes on these services and goods.
- Most agricultural products are also exempted from the GST slabs to support farmers and promote the growth of the agriculture sector in India.
- 0 GST rate items also support small traders and businesses.
List of 0 GST Rate Items In IndiaÂ
Check the table below to know some of the goods and services under 0 GST rate items in India.
1. Goods Exempted from GST Rates in IndiaÂ
| 0 GST rate items in India | Item | Description |
| Food Items | Fresh Fruits and Vegetables | Unprocessed fruits and vegetables |
| Milk and Dairy Products | Unprocessed milk, butter, curd, and other unprocessed dairy products | |
| Meat and Fish | Unprocessed meat and fish | |
| Eggs | Fresh eggs | |
| Bread | Unbranded bread | |
| Flour | Unbranded flour (including atta, maida, besan, etc.) | |
| Natural Honey | Pure, unprocessed honey | |
| Fresh Meat | Excluding poultry, fresh and unprocessed | |
| Printed Materials | Books | Printed books, including textbooks, journals, and periodicals |
| Newspapers | Printed newspapers | |
| Health and Hygiene | Sanitary Napkins | Feminine hygiene products |
| Traditional Goods | Khadi Products | Hand-spun, hand-woven khadi products |
2. Services Exempted from GST Rates in IndiaÂ
| 0 GST Rate Items | Service | Descriptions |
| Education | School Education | Services provided by educational institutions up to higher secondary |
| Higher Education | Services provided by educational institutions for undergraduate and postgraduate programs | |
| Healthcare | Healthcare Services | Services provided by hospitals, clinics, and other healthcare facilities |
| Essential Medicines | Medicines listed under the essential medicines list (not explicitly zero-rated but exempted) | |
| Public Transport | Transport services | Non-AC, non-premium class public transportation services |
| Charitable Activities | Services by Entities registered under section 12AA | Services provided by charitable entities registered under Section 12AA of the Income Tax Act |
| Agriculture | Agricultural services | Services related to cultivation, harvesting, threshing, plant protection, or testing of seeds |
| Banking and Finance | Services provided by RBI (Reserve Bank of India) | Services provided by the Reserve Bank of India |
| Religious Services | Services by Religious trusts | Services provided by religious trusts registered under Section 12AA of the Income Tax Act |
GST Rate items In 2024
Let us look at some of the major services exempted from tax by the government of India in 2024.
| Particulars | New GST Rate |
| Extra Neutral Alcohol is used for the manufacture of alcoholic liquor for human consumption | 0% GST |
| Services provided by Indian Railways to the common man for the sale of platform tickets, cloakrooms, and battery-operated car services are exempted, including intra-railway supplies | 0% GST |
| Service by way of hostel accommodation is currently not exempted if outside educational institution upon satisfying the conditions that the rent limit is up to Rs. 20,000 per person per month, and the service is rendered for a continuous period of 90 days | 0% GST |
| Corporate guarantee if in case it is for services or goods where the whole ITC is available | 0% GST |
| Services provided by Special Purpose Vehicles (SPV) to Indian Railway by way of allowing Indian Railway to use infrastructure built & owned by SPV during the concession period and maintenance services supplied by Indian Railways to SPV | 0% GST |
| Imports of research equipment/buoys imported under the Research Moored Array for African-Asian-Australian Monsoon Analysis and Prediction (RAMA) program subject to specified conditions | Exempt IGST |
| Imports in SEZ by SEZ Unit/developers for authorised operations with effect from 1st July 2017 | Exempt |
| Supply of aerated beverages and energy drinks to authorised customers by Unit Run Canteens under the Ministry of Defence | Exempt |
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0 GST Rate Items FAQs
Why are GST imposed on items in India?
GST or Goods and Services taxes, are imposed on items to enhance tax compliance and increase transparency.
What are the 0% GST Rate items?
Some essential items like healthcare, education, and food are exempted from tax slabs to promote affordability and promote certain products. Check the detailed list in this article.
Why is there GST on everything?
GST ensures uniform tax rates across the country based on the types of goods and services. It increases transparency and uniformity in the taxation processes.
Who are exempted from GST?
Small business owners or service providers who do not cross 40 lakh annual turnover are exempt from GST registration. Also, agriculturists and sellers involved in the supply of goods and services are exempted from paying GST taxes.
