Zeros rated supply and Zero rate on exports under GST terms

Posted on 11 June 2022 Category : GST terms difference

How to differentiate Zero rate on exports with Zero rated supply?

What is Zero rate on exports? How doesZero rated supplywork under GST regime? What is the difference between Zero rate on exports and Zero rated supply?

Under GST system, the following information explains about Zero rate on exports and Zero rated supply.

Zero rate on exports

GST would not be charged on goods or services exported from India. In case, the supply of goods or supply of services qualifies as export out of India as per the place of supply provisions, the transaction would be zero rated. The supplier would be allowed to export the goods or services without charging any tax, but can avail the CGST/SGST and IGST credits. If they are unable to utilize the credit, then they can go for refund of. CGST/ SGST/ IGST paid on procurement of such goods and/or services.

Zero rated supply.

“Zero rated supply” means any of the following supplies of goods or services or both, namely:––Export of goods or services or both; or Supply of goods or services or both to a Special Economic Zone developer or a Special Economic Zone unit.

As per GST terms, Zero rate on exports means GST would not be charged on goods or services exported from India. In case, the supply of goods or supply of services qualifies as export out of India as per the place of supply provisions, the transaction would be zero ratedand Zero rated supply means “Zero rated supply” means any of the following supplies of goods or services or both.

The details about Zero rate on exports and Zero rated supply with simple language from GST terms have been mentioned in this web blog separately. I suggest you to read these articles on Zero rate on exports and Zero rated supply, so as to enable you to have a clear idea on these GST terms.

For your immediate reference, we give below web links on Zero rate on exports and Zero rated supply separately below. You may kindly read the below links to know more about Zero rated supply and Zero rate on exports .

What is Zero rate on exports under GST

What is Zero rated supply under GST

The above information easily explains about Zero rated supply and Zero rate on exports.

I hope, you have satisfied with the difference between Zero rate on exports and Zero rated supply explained above. Do you have different thought on difference between Zero rated supply and Zero rate on exports ?

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