EXEMPTIONS

Generally, tax is levied on all goods and services according to the guidelines set by the
Government. But in some cases, the Government deviates from the guidelines due to difficulties
in levying the tax in various economic sectors.
There are various forms of exemptions, including threshold limits and geographical
exemptions. Specific items may also be excluded from GST for reasons relating to the product or
its usage.
The exemption limit for business in the North Eastern states will be Rs.10 lakhs and the
exemption limit for business in other Indian states will be Rs.20 lakhs
The exemptions are classified in to two categories, namely:
 Merit based exemption/concessional exemptions
 Technical exemptions
Merit based exemption/concessional exemptions:
Merit-based or Concessional Exemption is the exemption provided to essential products
like certain food items and other basic amenities to maintain the stability of the GST rate.
The main intension of such exemptions is that the common man should not suffer from heavy
taxes. Therefore, GST Council has given exemptions on various products such as wheat, rice,
milk, eggs, fruits and vegetable etc.
Technical exemptions