CURRENT AFFAIRS

Detailed explanation-1: -Export of Goods/Services is treated as Zero Rated Supply under GST. Zero Rating effectively means no tax is payable on exports but the exporter is eligible to take input tax credit on inputs/ input services used in relation to exports.

Detailed explanation-2: -Some examples include bread, fresh fruits, milk, curd, etc. Supplies made overseas and to Special Economic Zones (SEZs) or SEZ Developers come under the zero-rated supplies. This supply attracts a GST of 0%. For such supplies, ITC can be claimed.

Detailed explanation-3: -The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. A duty drawback was provided under the previous laws for the tax paid on inputs for the export of exempted goods. Claiming the duty drawback was a cumbersome process.

Detailed explanation-4: -These items or services are mentioned in schedule 1 of the GST rate schedule and are subject to a 0% GST rate. Salt, jaggery, cereals, and other items are examples of zero-rated supplies. There is no input tax credit available on supplies with a nil rate for the inputs and/or input services used to provide the supply.