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Goods Exempted Under GST

In the earlier indirect tax regime, various taxes were levied at every stage of business and sales. Excise was levied on manufacture and production, while VAT was levied on the sale of goods within the state, and CST was levied on the sale of goods outside the state. Service tax was levied on services provided by the person. There were various laws enacted for all the above events. It had its own set of disadvantages and its share of advantages. To overcome the difficulties faced by the tax payer, a new law on a Pan India basis came into the picture. All these taxes were subsumed under one law- Goods & Service Tax Bill, 2017. GST is a value added tax which is levied on manufacturer/producer, sale and consumption of goods and services. The supplier at each stage is permitted to avail credit of GST paid on purchases of goods and services. This GST paid shall be set off against GST collected in respect of the supply of goods and services made by him. Thus, set off benefit is available and the expense of tax is born by the final customer. Another benefit of GST is that there is no cascading of tax as only value added at each stage is taxed. GST is a tax levied on all supply of goods and services except alcoholic liquor for human consumption. Taxes levied under GST shall be charged at 0%, 0.25%, 3%, 5%, 12%, 18%, and 28%. Maximum rate of GST shall be 40%. The products that come under GST are listed as per HSN code (Harmonised System of Nomenclature). This ensures the invoicing practises match with global standard of product nomenclature. Currently, the goods on which GST is not levied till date are:

  • Petroleum crude
  • High Speed Diesel
  • Motor Spirit also known as petrol
  • Natural Gas
  • Aviation turbine tools

Exempted Goods under GST with HSN Code

(As per Central Board of Indirect Taxes and Customs - Department of Revenue, Ministry of Finance and Government of India)

Chapter 1: Live Animals

All goods other than live horses

HSN CODEPRODUCTS
0101Live asses, hinnies and mules
0102Live bovine animals
0103Live swine
0104Live goats and sheep
0105Live poultry, like fowls of the species Gallus domesticus, geese, ducks, guinea fowls and turkeys
0106Other live animals like birds, mammals, insects

Chapter 2: Meat and Edible Meat Offal

All goods other than in frozen state and stored in unit containers

HSN CODEPRODUCTS
0201Meat of bovine animals, chilled or fresh
0203Meat of swine, chilled or fresh
0204Meat of goats or sheep, chilled or fresh
0205 Meat of horses, mules, asses, or hinnies, chilled or fresh
0206Edible offal of bovine animals, goats, swine, asses, sheep, horses, hinnies or mules, chilled or fresh
0207Meat and edible offal, of the poultry of heading HSN code number 0105, chilled or fresh
0208Other meat and edible meat offal, chilled or fresh
0209 Pig fat, free of lean meat, and poultry fat, not rendered or otherwise extracted, chilled or fresh

Chapter 3: Dairy Produce, Natural Honey, Bird’s Eggs, Edible Products of Animal Origin, Not Specified Elsewhere

Fish, molluscs, crustaceans and other aquatic invertebrates (prawn / shrimp seeds / fish seeds), whether processed or not, cured or in frozen state, and all goods, other than processed, cured or in frozen state

HSN CODEPRODUCTS
0301 Live fish
0302Fish, chilled or fresh, not inclusive of fish fillets and other fish meat of heading HSN code number 0304
0304Fish fillets and other fish meat, whether or not minced, chilled or fresh
0306Crustaceans, whether in shell or not, live, chilled or fresh; crustaceans, in shell, cooked by steaming or by boiling in water, chilled
0307Molluscs, whether in shell or not, live, fresh, chilled; aquatic invertebrates other than crustaceans and molluscs, live, fresh, chilled
0308Aquatic invertebrates other than crustaceans and molluscs, live, chilled or fresh

Chapter 4: Dairy Produce, Natural Honey, Bird’s Eggs, Edible Products of Animal Origin, Not Specified Elsewhere

HSN CODEPRODUCTS
401Fresh milk and pasteurised milk, inclusive of separated milk, milk and cream, not concentrated nor containing added sugar or other sweetening matter, not including Ultra High Temperature (UHT) milk
403Curd, lassi, butter milk
407Eggs Birds' eggs, in shell, fresh, preserved or cooked
406Chena or paneer, other than put up in unit containers and bearing a registered brand name
409 Natural honey, other than put up in unit container and bearing a registered brand name

Chapter 5: Products of Animal Origin, Not Elsewhere Included or Specified

HSN CODEPRODUCTS
501Human hair, unworked, whether or not washed or scoured; waste of human hair
511Semen inclusive of frozen semen

Chapter 6: Live Trees and Other Plants, Roots, Bulbs, etc.; Ornamental Foliage and Cut Flowers

All goods under this chapter

Chapter 7: Edible Vegetables, Roots and Tubers, Fresh vegetables, roots and tubers other than those in frozen or preserved state

HSN CODEPRODUCTS
0701 Potatoes, chilled or fresh
0702Tomatoes, chilled or fresh
0703Onions, garlic, shallots, leeks and other alliaceous vegetables, chilled or fresh
0704Cabbages, kale, kohlrabi, cauliflowers and similar edible brassicas, chilled or fresh
0705Lettuce (Lactuca sativa) and chicory (Cichorium spp.), chilled or fresh
0706Turnips, salsify, carrots, salad beetroot, radishes, celeriac and similar edible roots, chilled or fresh
0707 Gherkins and cucumbers, chilled or fresh
0708 Leguminous vegetables, unshelled or shelled, chilled or fresh
0709 Other vegetables, chilled or fresh
0712 Dried vegetables, sliced, broken, cut, whole or in powder, but not further prepared
0713 Dried leguminous vegetables, shelled, whether or not split or skinned, apart from those stored in unit container and having a registered brand name
0714 Salep, manioc, Jerusalem Artichokes, arrowroot, sweet potatoes and similar tubers and roots with high insulin or starch content, chilled or fresh; sago pitho

Chapter 8: Edible Fruit and Nuts; Peel of Citrus Fruits or melons

Fresh fruits other than in frozen state or preserved

HSN CODEPRODUCTS
0801 Coconuts, dried or fresh, whether or not peeled or shelled
0802 Other nuts, fresh such as almonds, hazelnuts or filberts (Coryius spp.), walnuts, chestnuts (Castanea spp.), pistachios, macadamia nuts, kola nuts (Cola spp.), areca nuts
0803 Bananas, inclusive of plantains, fresh or dried
0804 Dates, figs, pineapples, avocados, guavas, mangoes and mangosteens, fresh
0805 Citrus fruit, like, mandarins, oranges, inclusive of satsumas and tangerines; wilkings, clementines and similar citrus hybrids, grapefruit, inclusive of lemons, pomelos, (citrus limonum, citrus limon) and limes (citrus latofolia, citrus aurantifolia), fresh
0806 Grapes, fresh
0807 Melons (inclusive of watermelons) and papaws (papayas), fresh
0808 Apples, quinces and pears, fresh
0809 Apricots, peaches, cherries (inclusive of nectarines), sloes and plums, fresh
0810 Other fruit such as mulberries, strawberries, blackberries, raspberries and loganberries, red, black or white currants and cranberries, gooseberries, bilberries and other fruits of the genus vaccinium, durians, kiwi fruit, pomegranates, persimmons, sapota (chico), tamarind, custard-apple (ata), litchi, bore, fresh
0814 Peel of citrus fruit or melons (inclusive of watermelons), fresh

Chapter 9: Coffee, tea, mate and spices

All goods of seed quality

HSN CODEPRODUCTS
0901 Coffee beans, not roasted
0902 Unprocessed green leaves of tea
0910 Fresh ginger and fresh turmeric, other than in processed form

Chapter 10: Cereals

All goods, other than those put up in unit container and bearing a registered brand name

HSN CODEPRODUCTS
1001 Wheat and meslin
1002 Rye
1003 Barley
1004 Oats
1005 Maize (corn)
1006 Rice
1007 Grain sorghum
1008 Buckwheat, canary and millet seed; other cereals such as jawar, bajra, ragi

Chapter 11: Products of Milling Industry; Starches; Wheat Gluten; Malt; Inulin

1101, 1102, 1105, 1106 (Flour): Aata, maida, besan etc., apart from those stored in unit container and having a registered brand name

HSN CODEPRODUCTS
1101 Wheat or meslin flour
1102 Cereal flours other than of wheat or meslin i.e. rye flour, maize (corn) flour, etc.
1103 Cereal groats, meal and pellets, apart from those stored in unit container and having a registered brand name
1105 Flour of potatoes
1106 Flour of the dried leguminous vegetables of heading HSN code number 0713 (pulses), of sago or of roots or tubers of heading HSN code number 0714 or of the products of Chapter 8 i.e. of mango flour, tamarind, singoda, etc.

Chapter 12: Oil Seeds and Oleaginous Fruits, Fruits and Seeds; Straw and Fodder; Medicinal or Industrial Plants; Miscellaneous Grains

All goods of seed quality

HSN CODEPRODUCTS
1201 Soya beans, whether or not broken
1202 Groundnuts, not roasted or otherwise cooked, whether or not shelled or broken
1204 Linseed, whether or not broken
1205 Rape or colza seeds, whether or not broken
1206 Sunflower seeds, whether or not broken
1207Other oil seeds and oleaginous fruits (i.e. palm nuts and kernels, castor oil seeds, cotton seeds, sesamum seeds, safflower (Carthamus tinctorius) seeds, mustard seeds, melon seeds, ajams, mango kernel, poppy seeds, Niger seed, kokam, whether or not broken.
1209 Seeds, fruit and spores, of a kind used for sowing
1210 Hop cones, fresh
1211Plants and parts of plants (inclusive of seeds and fruits), of a kind used primarily in perfumery, in pharmacy or for insecticidal, fungicidal or similar purpose, chilled or fresh
1212 Locust beans, seaweeds and other algae, sugar beet and sugar cane, chilled or fresh
1213Cereal straw and husks, unprepared, whether or not chopped, ground, pressed or in the form of pellets
1214Swedes, fodder roots, mangolds, hay, clover, forage kale, lucerne (alfalfa), lupines, sainfoin, vetches and similar forage products, whether or not in the form of pellets

Chapter 13: Lac, Resins, Gums and Other Vegetable Extracts and Saps

1301: Lac and shellac

Chapter 14: Vegetable Plaiting Materials; Vegetable Products, Not Elsewhere Included or Specified

1404: Betel leaves

Chapter 17: Sugar and Sugar Confectionery

1701: Cane jiggery

Chapter 19: Preparations of Cereals, Starch, Flour or Milk; Pastry cooks’ Products

HSN CODEPRODUCTS
1904Puffed rice, commonly known as Muri, flattened or beaten rice, commonly known as chira, parched rice, commonly known as khoi, parched paddy or rice coated with sugar or gur, commonly known as Murki
1905 Pappad, by whatever name it is known, except when served for consumption, and bread (branded or otherwise), except when served for consumption and pizza bread

Chapter 21: Miscellaneous Edible Preparations

HSN CODEPRODUCTS
2106 Prasadam supplied by places of worship, such as temples, churches, dargahs, mosques, gurudwaras, etc.

Chapter 22: Beverages, Spirit and Vinegar

HSN CODEPRODUCTS
2201Water, other than aerated, mineral, purified, distilled, medicinal, ionic, battery, de-mineralized and water sold in sealed container
2201 Non-alcoholic Toddy, Neera
2202Tender coconut water stored in unit container and having a registered brand name

Chapter 23: Residues and Waste from the Food Industries; Prepared Animal Fodder

HSN CODEPRODUCTS
2302, 2304, 2305, 2306, 2309 Aquatic feed, cattle feed and poultry feed, inclusive of straw, grass and hay, husk and supplement of pulses, additives and concentrates, wheat bran and de-oiled cake

Chapter 25: Salt; Sulphur; Stone and Earths; Plastering Materials, Cement and Lime

HSN CODEPRODUCTS
2501 Common salt, inclusive of iodized and other fortified salts, kala namak, sendha namak [rock salt]

Chapter 30: Pharmaceutical Products

HSN CODEPRODUCTS
3002 Human blood and its components
3006 All kinds of contraceptives

Chapter 31: Fertilizers

Organic manure, apart from that stored in unit containers and having a brand name

Chapter 33: Essential Oils and Resinoids Perfumery, Toilet or Cosmetic Preparations

HSN CODEPRODUCTS
3304 Kumkum, sindur, bindi, alta

Chapter 38: Miscellaneous Chemical Products, Municipal waste, clinical waste, sewage sludge

Chapter 39: Plastics and Articles Thereof

Plastic bangles

Chapter 40: Rubber and Articles Thereof

HSN CODEPRODUCTS
4014Condoms and Contraceptives

Chapter 44: Wood and Articles Thereof, Wood Charcoal

HSN CODEPRODUCTS
4401 Fuel wood or firewood
4402Wood charcoal, inclusive of nut or shell charcoal, whether or not agglomerated

Chapter 48: Paper and Paperboard; Articles of Paper Pulp, of Paper or of Paperboard

HSN CODEPRODUCTS
4802, 4817Judicial, non-judicial stamp papers, court fee stamps when sold by the Government Treasuries or vendors authorized by the Government, postal items, such as postcard, envelope, etc., sold by the Government, rupee notes when sold to the Reserve Bank of India & cheques, loose or in book form

Chapter 49: Printed Books, Newspapers, Pictures and Other Products of the Printing Industry, Typescripts, Manuscripts and Plans

HSN CODEPRODUCTS
4901 Printed books, inclusive of braille books
4902 Newspaper, periodicals and journals, whether or not illustrated or containing advertising material
4905Maps and hydrographic or similar charts of all types, inclusive of atlases, globes, topographical plans and wall maps, printed

Chapter 50: Silk

HSN CODEPRODUCTS
5001 Silkworm laying, cocoon
5002 Raw silk
5003 Silk waste

Chapter 51: Wool, Coarse or Fine Animal Hair, Horse Hair Yarn and Woven Fabric

HSN CODEPRODUCTS
5101 Wool, not combed or carded
5102 Coarse or fine animal hair, not combed or carded
5103 Waste of wool or of coarse or fine animal hair

Chapter 52: Cotton

Khadi yarn, Gandhi topi

Chapter 53: Other Vegetable Textile Fibres; Paper Yarn, Woven Fabrics of Paper Yarns

HSN CODEPRODUCTS
5303 Jute fibres, processed or raw but not spun
5305 Coconut, coir fibre

Chapter 63: Other Made Up Textile Articles, Sets, Worn Textile Articles and Worn Clothing; Rags

Indian National Flag

Chapter 69: Ceramic Products

6912: Clay lamps and earthen pots

Chapter 70: Glass and Glassware

7018: Bangles, apart from those made from precious metals

Chapter 82: Tools, Forks and Spoons of Base Metal, Cutlery, Implements; Parts Thereof of Base Metal

8201: Agricultural implements, animal-driven or manually-operated, and hand tools, like shovels, hoes, spades, picks, mattocks, rakes and forks; bill hooks, axes and similar hewing tools; pruners and secateurs of any type; timber wedges, scythes, hay knives, sickles, hedge shears, and other tools of a kind used in forestry, agriculture or horticulture

Chapter 84: Boilers, Nuclear Reactors, Machinery and Mechanical Appliances; Parts Thereof

Handloom

Chapter 88: Aircraft; Spacecraft and Parts Thereof

HSN CODEPRODUCTS
8802 Spacecraft, inclusive of satellites and suborbital and spacecraft launch vehicles
8803 Parts of Goods of Heading HSN Code Number 8801

Chapter 90: Photographic, Cinematographic, Optical, Checking, Measuring, Precision, Surgical or Medical Apparatus and Instruments; Parts and Accessories Thereof

9021: Hearing Aids

Chapter 92: Musical Instruments; Accessories and Parts of Such Articles

Indigenous handmade musical instruments

Chapter 96: Miscellaneous Manufactured Articles

HSN CODEPRODUCTS
9609 Slate pencils and chalk sticks
9610 Slates

Frequently Asked Questions

What is exempt supply?

Exempt supply means supply of goods or services or both which are chargeable to nil rate of tax. It also includes non-taxable supply. It shall also include those supplies that are wholly or partially exempted from GST by way of a notification.

What is non-taxable supply?

Non-taxable supply means a supply of goods or services or both which is not chargeable to tax under GST.

Does GST apply to whole of India?

Yes, GST applies to whole of India including the State of Jammu & Kashmir.

Who is a taxable person?

A person who compulsorily registers under GST or has registered himself for crossing the specifying limit of turnover shall be called as a taxable person.

What will GST in India comprise of?

GST will comprise of State GST (SGST), Central GST (CGST), Union Territory GST (UTGST), Integrated GST (IGST), GST Compensation Cess.

Read More About Tax

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