GST in India
Exemptions, Zero Rating and What Is Outside GST
Some goods are exempt, exports are zero-rated, and petrol, diesel, liquor and electricity remain outside GST.
Not everything is taxed under GST.
Exempt goods
Basic food items, education and healthcare services are largely exempt.
Zero rating
Exports are zero-rated, meaning no tax is charged and input credits can be refunded.
Outside GST
Petroleum products, alcohol for human consumption and electricity are still taxed separately by states and the Centre.
Why
States rely heavily on these taxes and are reluctant to give them up.
Petrol pump price
Fuel prices include central excise and state VAT, not GST.
Assuming GST covers all indirect taxes
Several important goods remain outside.
Key takeaways
- Some essentials are exempt.
- Exports are zero-rated.
- Petrol and alcohol remain outside.
- States depend on those taxes.
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