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An overview of the supplies that are exempt from GST in India is provided in Appendix 22B.

The effects of exemption are that:

1. Ìý

   •ÌýÌýÌýÌý the goods or services are free of GST at the point of delivery; and

2. Ìý

   •ÌýÌýÌýÌý GST incurred on costs associated with making the exempt supplies (including overhead costs) is not recoverable.

Businesses making only exempt supplies will not be liable to register for GST. However, businesses making a mixture of taxable and exempt supplies must register subject to meeting the conditions for registration.

These businesses are known as 'partly exempt' and are obliged to use a proportionate input tax credit restriction method when calculating the input GST figures required for disclosure on the periodic GST return.

For the purposes of determining the proportionate input tax credit restriction, the government has specified that the following