What Does GST Exempt Mean?
GST-exempt supplies are goods or services on which no GST is charged. Suppliers of only exempt goods/services do not need to register for GST (unless their turnover exceeds the threshold through taxable supplies). However, suppliers of exempt goods cannot claim ITC on purchases related to exempt supplies.
💡 Exempt vs Zero-Rated vs Nil-Rated
Exempt: No GST, no ITC. Zero-rated (exports): 0% GST but ITC claimable. Nil-rated: GST rate is 0% but supply is taxable — ITC rules apply differently.
GST Exempt Goods — Complete List 2026
Food & Agricultural Products
| Item | GST Rate |
|---|---|
| Fresh fruits and vegetables | Exempt |
| Rice, wheat, other cereals (unbranded) | Exempt |
| Flour (atta), maida (unbranded) | Exempt |
| Fresh milk and pasteurised milk | Exempt |
| Curd, lassi, buttermilk | Exempt |
| Eggs (fresh) | Exempt |
| Fresh meat, fish, poultry (unprocessed) | Exempt |
| Salt | Exempt |
| Jaggery (gur) | Exempt |
| Natural honey | Exempt |
| Live animals (cattle, poultry) | Exempt |
| Seeds for sowing | Exempt |
Healthcare & Medicines
| Item | GST Rate |
|---|---|
| Human blood and blood products | Exempt |
| Contraceptives | Exempt |
| Hearing aids | Exempt |
| Wheelchair, crutches, walking frames | Exempt |
| Braille paper, watches, typewriters for blind | Exempt |
Other Exempt Goods
| Item | GST Rate |
|---|---|
| Firewood and fuel sticks | Exempt |
| Handloom fabrics | Exempt |
| Khadi fabric (sold through KVIC) | Exempt |
| Earthen pots, clay idols | Exempt |
| Judicial and non-judicial stamp papers | Exempt |
| Postal items (stamps, postcards, envelopes) | Exempt |
| Currency (notes and coins) | Exempt |
| Lottery tickets | Exempt |
GST Exempt Services — Complete List 2026
Healthcare Services
- Services by hospitals, clinics, nursing homes
- Services by doctors, dentists, paramedics
- Ambulance services
- Blood banks
- Services by veterinary clinics
Education Services
- Services by educational institutions (pre-school to higher secondary)
- Services by colleges affiliated to universities
- Coaching for competitive exams (UPSC, JEE, NEET) — taxable at 18% — not exempt
- Services by IITs, IIMs, NITs — exempt
- Mid-day meal services in schools
⚠️ Coaching Classes Are NOT Exempt
Private coaching centres, tuition classes, and test prep institutes are taxable at 18% GST. Only formal educational institutions are exempt.
Financial Services
- Interest on loans and advances (by banks and NBFCs)
- Services by Reserve Bank of India
- Services by SEBI
- Life insurance services (certain pure protection plans)
- Agriculture credit by banks
Government and Public Services
- Services by government to individuals (passports, licences etc.)
- Municipal waste collection services
- Services by diplomatic missions
- Defence establishment services
- Toll charges on national highways
Agriculture and Allied Services
- Agricultural extension services
- Services by Agricultural Produce Marketing Committee (APMC)
- Warehousing of agricultural produce
- Services relating to cultivation, harvesting, threshing of crops
Religious and Charitable Services
- Services by religious and charitable trusts registered under Section 12AA of Income Tax Act
- Services within a religious place to devotees
- Conducting religious ceremonies
Difference Between Exempt and Non-GST Supplies
| Aspect | Exempt Supply | Non-GST Supply |
|---|---|---|
| Examples | Healthcare, fresh food | Alcohol, petrol, diesel, electricity |
| GST applicable | No | No (outside GST scope) |
| Reported in returns | Yes — in GSTR-1 and 3B | No — outside GST framework |
| ITC impact | ITC reversal required | ITC reversal required |
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GST Rates List →Frequently Asked Questions
If I only sell exempt goods, do I need GST registration?
If you supply only exempt goods/services and your turnover of taxable supplies is zero, GST registration is not required regardless of total turnover.
Can I claim ITC if I sell both exempt and taxable goods?
ITC must be apportioned. ITC relating to taxable supplies is fully claimable. ITC relating to exempt supplies must be reversed using the formula in Rule 42/43 of CGST Rules.
Is GST applicable on donations to charitable trusts?
Genuine donations without any consideration are not a supply under GST and hence not taxable. However if something is given in return (event tickets, benefits), it may become taxable.