Latest Query & Reply

Hello sir,

 What is difference between exempt service and nil rated service? How it is affected while taking input tax credit. What is passenger transport to non ac bus service?

is it exempt service or nil rated service.?

Reply

Nil rated supply is the supply which is chargeable to nil rate of tax or 0% of tax. So goods or service which are said to be covered under nil rated supply are the ones which are chargeable to 0% GST. Exempt supplies are the supplies which are wholly exempt from tax under GST Act. Exempt supplies also include Nil rated supplies. As per S.No. 15(b) of Notification 12/2017, Transport of passengers, with or without accompanied belongings by non-airconditioned contract carriage other than radio taxi, for transportation of passengers, excluding tourism, conducted tour, charter or hire is NIL Rated supply.