Purchase of ‘Nil-Rated’ , ‘Exempted’, Items & Goods using TallyPrime-2.1

With the introduction of GST, the goods and services have been classified into Nil Rated, Exempted, Zero Rated and Non-GST supplies. The Purchase or Sales of these goods to a local or interstate customer does not attract GST, and can be recorded using a Purchase / Sales voucher. Let us take a look at what distinguishes each of them with some examples:

Supply	GST Applicable	Type of Supply	Eligibility for ITC	Examples
NIL Rated	0%	Everyday items	No	Grains, Salt, Jaggery, etc.
Exempted	–	Basis essentials	No	Bread, Fresh Fruits, Fresh Milk, Curd etc.
Zero Rated	0%	Overseas supplies, Supply to Special Economic Zones (SEZ) or SEZ Developers	Yes	–
Non- GST	–	Supplies for which GST is not applicable but can attract other taxes	No	Petrol, Alcohol etc.

In case of above Items and Goods , the option Nil Rated / Exempt has to be selected as the Taxability in the GST Details screen of the item or item group master.