Zero Rated Supply Is neither a Taxable Supply nor an Exempt Supply

• November 13, 2019
• CA Chandan Agarwal's Office

In my personal opinion, for the purpose of levy of goods and services tax, supplies mentioned in sub-section (1) of section 16 of the Integrated Goods and Services Tax Act, 2017 (IGST Act), for the reasons given hereunder, are neither taxable supplies of goods or services or both nor exempt supplies of goods or services or both. In this article, I will try to know the taxability of zero rated supply.

Zero rated supply is understood as a supply which attracts zero rate of tax. Section 16 of the IGST Act relates to “Zero rated supply”. The said section runs as follows:–

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