GST-Exempt Goods: List of Goods Exempt Under GST

Introduction

A GST exemption in India means that specific goods and services are not subject to the Goods and Services Tax. This exemption helps make essential items more affordable and accessible to the public. Many basic necessities—such as food products, healthcare services, and educational services—fall under this category. Unlike zero-rated supplies, businesses dealing in exempt goods cannot claim input tax credit on the GST paid for their inputs.

In this article, we highlight the key goods that are exempt from GST. Refer to our detailed guide to learn more about GST exemptions.

Which Goods Are Exempt from GST?

Under India’s GST framework, several essential goods are fully exempt from tax to keep daily necessities affordable and accessible. Below is an overview of the major categories of goods that are exempt from GST.

List of Goods Exempt from GST in India

The government exempts a wide range of commonly used goods, including:

1. Food Items

Cereals; fresh fruits and vegetables; edible roots and tubers; unprocessed meat and fish; tender coconut; jaggery; unprocessed tea leaves; unroasted coffee beans; seeds for sowing; fresh ginger and turmeric; betel leaves; papad; all varieties of flour; curd, lassi, buttermilk; milk; and aquaculture feed.

2. Raw Materials

Raw silk and silk waste, unprocessed wool, khadi fabric, cotton used for khadi yarn, raw jute fibre, firewood, charcoal, and handwoven fabrics.

3. Tools and Instruments

Hearing aids, basic hand tools (spades, shovels), agricultural implements, handmade musical instruments, and assistive devices for individuals with disabilities.

4. Miscellaneous Items

Books, newspapers, journals, maps, non-judicial stamp papers, postal items; live animals (except horses); beehives; human blood and semen; plain bangles; chalk sticks; contraceptives; clay pots; religious items (idols, bindi, kumkum); kites; organic manure; and vaccines.

Detailed Examples of GST-Exempt Goods

Types of Goods	Examples
Live Animals	Asses, cows, sheep, goats, poultry
Meat	Fresh/frozen meat of goats, cows, pigs, horses, etc.
Fish	Fresh or frozen fish
Natural Products	Honey, fresh milk, cheese, eggs
Live Trees & Plants	Bulbs, roots, flowers, foliage
Vegetables	Potatoes, onions, tomatoes
Fruits	Apples, bananas, grapes
Dry Fruits	Cashews, walnuts
Tea, Coffee & Spices	Coffee beans, tea leaves, turmeric, ginger
Grains	Rice, wheat, oats, barley
Milling Products	Various flours
Seeds	Oilseeds, flower seeds, cereal husks
Sugar	Sugar, jaggery
Water	Tender coconut water, water (non-mineral)
Baked Goods	Bread, puffed rice, pizza base
Fossil Fuels	Electrical energy
Pharmaceuticals	Human blood, contraceptives
Fertilizers	Organic manure
Beauty Products	Bindi, kajal, kumkum
Waste	Municipal waste, sewage sludge
Ornaments	Plastic/glass bangles
Newsprint	Judicial stamp paper, envelopes, notes
Printed Items	Books, newspapers, maps
Fabrics	Raw silk, khadi, silkworm cocoon
Hand Tools	Spades, hammers
Pottery	Clay lamps, earthen pots

Related: Click here to learn about GST exemption on gold, silver, and platinum, and medicines notified by the CBIC for COVID-19 treatment.

List of Services Exempt from GST in India

A wide spectrum of services is also exempt from GST. Key categories include:

1. Agricultural Services

All agricultural activities except horse breeding, including cultivation, harvesting, supply of farm labour, fumigation, packaging, renting farm machinery, warehouse services, and services provided by Agricultural Produce Marketing Committees.

2. Transportation Services

Exempt services include:

Road/bridge transport via tolls
Goods transport by road (except by transport or courier agencies)
Inland waterway transport
Passenger air travel in Northeastern states and Bagdogra
Non-AC contract carriages and transport of milk, salt, newspapers, agricultural produce, or wood
Goods transport costing under ₹1500
Vehicle hiring services by State Transport Undertakings

3. Government and Diplomatic Services

Services by foreign diplomatic missions
Services by the RBI
Government/local authority services except—
- Postal services (speed post, express parcel)
- Life insurance
- Aircraft/vessel-related services outside airports/ports
- Transportation of goods/passengers
- Services to business entities
Services to diplomats and the United Nations
Life insurance under NPS and defence forces group insurance

4. Judicial Services

Services by arbitral tribunals to non-business or small business entities
Legal services by advocates or law firms to non-business or small business entities
Services by senior advocates to the same categories

5. Educational Services

Transportation, mid-day meals, admission, exam, security, and housekeeping services for educational institutions
Services by IIMs (excluding executive programs)
Coaching services under the Scholarship Scheme for Students with Disabilities

6. Medical Services

Veterinary clinics
Healthcare services by clinics, paramedics, and ambulances
Services by charities and religious pilgrimage facilitators

7. Organizing and Tourism Services

Organizing business exhibitions abroad
Tour operator services for tours entirely outside India for foreign tourists

8. Miscellaneous Services

Electricity transmission/distribution
Services by recognized sports bodies
Press and news agencies (PTI, UNI)
Slaughterhouse services
Library services
Public conveniences (toilets, washrooms)
Vehicle rentals by State Transport Undertakings
Overloading charges at toll plazas
Religious ceremony services
Renting religious premises

New Exemptions

Services by GSTN to governments/UTs
GST exemption for back-office operations
GST exemption on residential property rentals and room rentals under ₹1000/day
IGST exemption on imports under lease agreements (including changes in lessee)
Exemption on air/sea export freight extended to 30 September 2022
Admission to entertainment or cultural events, museums, parks, and sanctuaries if ticket price is below ₹250

Reasons for GST Exemption on Certain Goods

Certain goods are exempt from GST for several important reasons:

Affordability: To keep essential goods and services financially accessible, particularly for lower-income households.
Accessibility: To ensure vital everyday necessities remain within reach without the added burden of taxation.
Social Welfare: To encourage the use of basic goods that support public health and overall well-being.
Economic Stability: To strengthen and stabilize key sectors that are critical to the country’s economy and daily life.
Equity: To reduce economic inequality by easing the tax burden on essential items that account for a significant portion of lower-income spending.

About the Author

Ravi

Ravi is a seasoned legal writer who transforms complex laws into clear, practical insights. He equips entrepreneurs with the knowledge they need to understand their legal responsibilities, helping them build confident, compliant, and sustainable businesses.