All you Need to Know About GST Exemption


GST is considered to be the game changer in the history of India. It is because it is expected that it will bring a positive change in terms of enhancement of Indian economy. After its recent implementation, people are confused regarding the process of registration and procedure involved in the filing of taxes, GST exemptions for small businesses and the provisions that have been made to implement GST. If you are an owner of a small business or an individual dealing with the supply of goods and services, you need to know various exemption schemes declared under the GST for entrepreneurs, enterprises, and small organizations. Let’s discuss taxpayers who are exempted from paying the GST. Take a look.


Agriculturists who deal with the cultivation of land and sell products earned by the same. They are exempted from GST registration, filing, returns and even ITC. It is because they are given the benefit of exempted agro-based products such as seeds, irrigation, fertilizers, machinery required for the cultivation and harvesting crops.

Small Businesses

Small businesses, enterprises, organizations or entrepreneurs whose annual turnover is less than twenty lakhs are exempted from the GST registration and paying taxes under GST. However, businesses whose turnover is above twenty lakhs but less than seventy-five lakhs have to get registered under the composition scheme of GST in which they have to pay taxes at a nominal rate. This way, small businesses will be given an opportunity to grow more and make their competitive image in the Indian market.

Individuals Supplying Exempted Goods

GST has covered almost everyone under the new taxation regime who is involved with the supplies of goods and services excluding those individuals who are supplying exempted goods. The list of exempted goods are as follows:

  • Processed foods including wheat, rice, milk, vegetables, eggs, cereals, salt, etc.
  • Education material
  • Healthcare related products excluding medicines
  • Railways (sleeper and general class)
  • Makeup essentials such as bangles, sindoor etc.
  • Hotels and lodges whose rent is less than thousand rupees

Individuals Supplying Non-Taxable Goods

Individuals who deal with the supply of non-taxable goods including electricity, petroleum crude/petrol, natural gas, high-speed diesel, aviation turbine fuel, and alcohol for human consumption. Therefore, individuals supplying these goods are exempted from getting registered and paying taxes under the GST.

Employees not Dealing with Supply of Goods or Services

Individuals who are an employee in a company or getting paid for doing business are exempted from the GST compliance. Any business which is not dealing with the supply of goods and services is exempted from getting registered under the GST. These include service by an employee, court or tribunal, functions, and duties of MPs, MLAs, a member of Director in a body, or any individual holding a constitutional post. Also, the individuals who are giving the funeral services are exempted from GST.

Wrapping Up

There is still a lot of confusion going around because of the new provisions declared after the implementation of GST.  There are several GST related software that cab simplifies your tasks of GST registration, filing, paying taxes and even for claiming the returns and ITC. Therefore, get an efficient and reliable software to resolve all your queries related complete  GST exemption and rates.


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