Glossary · GST & Indirect Tax
Nil-Rated Supply
A supply on which the GST rate is zero and which generally does not allow input tax credit, because no tax is levied at all.
A nil-rated supply falls in the schedule of goods and services carrying a 0% GST rate, so no output tax is charged. Unlike zero-rated supplies, nil-rated supplies usually do not attract a refund of input tax credit on inputs used for them, because the supply is outside the rate structure entirely. Many fresh and unprocessed food items and certain essential services are nil-rated.
Examples
Fresh fruits and vegetables are typically nil-rated, so no GST is charged on their sale.