GST Exemption List — Exempt Goods & Services in India 2026

Updated: 3 June 2026

GST-exempt goods and services carry 0% tax — no GST is charged and no GST is collected. Key exempt categories: Essential food (fresh milk, eggs, unbranded cereals, vegetables, fruits); Healthcare (hospital treatment, diagnostic tests by clinical establishments); Education (school/college tuition fees, textbooks); Public transport (autos, metered cabs, state-run buses); Agricultural inputs and unprocessed farm produce; Residential rent to individuals; Religious services; Government services. Note: "Exempt", "nil rated", and "zero-rated (exports)" are legally distinct categories with different ITC implications.

0% GST Essential food, healthcare, education — fully exempt from GST. But ITC on inputs used for exempt supplies must be reversed.

GST Exemptions by Category — 2026

Category	Exempt Items / Services	Taxable Exceptions
Food & Agriculture	Fresh milk, eggs, unbranded cereals, fresh vegetables & fruits, unprocessed pulses, fresh meat/fish, jaggery, common salt	Branded packaged versions (5%), processed food (12%–18%), chocolates (28%)
Healthcare	Hospital treatment (inpatient/outpatient), diagnostic tests, ambulance, medicines dispensed in hospital	Cosmetic surgery (18%), retail pharmacy (0%–12% by medicine type)
Education	Pre-school, school, college, university tuition fees; textbooks and printed books	Coaching institutes (18%), private tutorial services (18%)
Transport	Auto-rickshaws, metered taxis/cabs (non-app based), stage carriage (state bus), metro rail, local train, ferry	App-based cabs (5%), air travel (economy 5%, business 12%), private bus
Housing / Rental	Residential accommodation rented to individuals for personal use	Commercial rentals (18%), residential to GST-registered businesses — RCM at 18%
Agriculture	Seeds, fertilisers, pesticides, agricultural machinery (tractors, etc.), services by Agricultural Produce Market Committee (APMC)	Some processed agricultural products taxable
Religious & Charitable	Services by a religious trust or charitable organisation; entry to religious places managed by registered trusts	Commercial accommodation and food supply by religious trusts above threshold taxable
Government Services	Services by Central/State Govt or local authority to individuals (pure public services); postal services (basic)	Some government services like regulatory fees taxable; commercial government services taxable

Nil Rated vs Exempt vs Zero Rated — Key Differences

Feature	Nil Rated	Exempt	Zero Rated (Exports)
GST rate on output	0%	0%	0%
Legal basis	GST Tariff — rate set at 0% in schedule	Notification under Section 11 CGST Act	Section 16 of IGST Act
Examples	Salt, fresh vegetables, eggs	Healthcare, education, residential rent	Goods/services exported outside India; supplies to SEZ
ITC on inputs	Must be reversed (blocked)	Must be reversed (blocked)	Fully allowed — can claim refund
Supplier registered?	Not required for small suppliers	Not required for small suppliers	Registration mandatory for exporters
Invoice requirement	Bill of Supply (no GST invoice)	Bill of Supply (no GST invoice)	Tax invoice with "Supply meant for export under LUT/bond"
Reported in GSTR-1	Table 8 — Nil rated / exempt	Table 8 — Nil rated / exempt	Table 6A (exports) / Table 7 (SEZ)

Frequently Asked Questions

Which food items are GST exempt?

The following food items are fully exempt (0% GST): fresh milk, pasteurised milk, eggs (unbranded), unbranded/unpacked cereals (rice, wheat, jowar, bajra, ragi), fresh fruits and vegetables, unprocessed pulses and lentils, fresh meat, fish, and poultry (unprocessed), jaggery (gur), common salt, and drinking water in natural form. However, branded/packaged versions of the same goods often attract GST — e.g., branded packaged cereals in sealed containers attract 5% GST. Processed and prepared food items (biscuits, chocolates, packaged snacks, aerated drinks) are generally taxable at 12%–28%.

Are hospital services exempt from GST?

Yes. Healthcare services provided by a clinical establishment (hospital, nursing home, maternity home), an authorised medical practitioner, or paramedics are fully exempt from GST. This includes: inpatient treatment, outpatient consultations, diagnostic tests (blood tests, X-rays, MRI, CT scans when done by a hospital or clinical establishment), ambulance services, and medicines dispensed in a hospital as part of treatment. However, cosmetic surgery or procedures done purely for aesthetic purposes (not medically necessary) are taxable at 18% GST. Pharmacy retail sales inside hospitals are also taxable at applicable GST rates (0%–12% depending on the medicine).

Is rent on residential property exempt from GST?

Rent on residential property is exempt from GST when rented to an individual for use as a residence (personal/family accommodation). This exemption applies regardless of the rent amount — even if rent exceeds ₹20 lakh/year. However, if a GST-registered business (company, LLP, firm) rents a residential property for employee housing, the company (as recipient) must pay GST under Reverse Charge Mechanism (RCM) at 18% — this rule was introduced from 18 July 2022. Commercial property rentals are always taxable at 18% GST.

Nil rated vs exempt — what is the difference?

Both nil rated and exempt supplies attract 0% GST, but they differ in legal treatment and ITC implications. Nil rated supplies are listed in Schedule I of the GST Tariff — GST rate is explicitly 0% (e.g., salt, fresh vegetables). Exempt supplies are specifically exempted by notification under Section 11 of the CGST Act (e.g., healthcare, education). The key difference: ITC on inputs used to make nil rated supplies must be reversed (you cannot use it). ITC on inputs used for exempt supplies must also be reversed. Zero-rated supplies (exports, SEZ supplies) are different — they carry 0% GST on output but full ITC is allowed on inputs.

Can I claim ITC on exempt supplies?

No. Input Tax Credit cannot be claimed on inputs or input services used exclusively for making exempt supplies. If you make both taxable and exempt supplies, you must reverse a proportionate portion of ITC under Rule 42 (for inputs and input services) and Rule 43 (for capital goods). The reversal ratio = (exempt turnover / total turnover). This proportionate reversal must be calculated monthly in GSTR-3B (Table 4B) and reconciled annually in GSTR-9. Failure to reverse ITC on exempt supplies is a compliance violation and can attract interest and penalty during GST audits or scrutiny assessments.

Gst Exemption List Near You

Expert CA/CS assistance for gst exemption list across India. Click your city for local details.

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