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 | – | Basic 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.
Purchase of ‘Nil-Rated’, ‘Exempted’, Items & Goods using TallyPrime
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.
Setting Nil-Rated & Exempted items and Goods :
[82-Practical Assignment-TallyPrime]
Swayam Sales deals the following Nil-Rated / Exempted Items and goods which purchased and sold in his business.
Create the following Items as details given.
| EXEMPTED ITEMS (Group) | Unit | HSN | Taxability | GST Rate |
| Moong Dal (Loose) | Kg. | 0713 | Exempted | 0% |
| Salt | Kg. | 2501 | Nil | 0% |
| Bread | Pcs | 1905 | Exempted | 0% |
| Fruits | Kg. | 0810 | Exempted | 0% |
Transactions:
15-04-2023 Purchase the following items in Cash from Registered Dealer which are Nil Rated and Exempted
| Name of items | Quantity | Rate | Value |
| Moong Dal | 70 Kg. | 85 | 5950 |
| Salt | 25 kg. | 25 | 625 |
| Bread | 60 Pcs. | 22 | 1320 |
| Fruits | 20 Kg. | 110 | 2200 |
Purchase Invoice of above goods are given below :
[83-Practical Assignment-TallyPrime]
Press ALT+A – GST Analysis as below :
[84-Practical Assignment-TallyPrime]
