GST Exempted Category Amazon


Millions of businesses use Amazon to increase their sales irrespective of the category. It is mandatory for businesses or sellers carrying out a taxable supply of items or products and services with a turnover of more than 20 lacs or 10 lacs in several states if they want to register themselves as normal taxable person under the GST system. Registering GST on Amazon is an important step you need to go through if you are an independent seller. For sellers having listings on e-commerce platforms such as is important except for the 0 percent category products or services. Registering GST on Amazon lets the business get benefits like simple input of tax credit under the GST system in India.

GST Exempted Category Amazon

Once the GST is launched in India, it becomes important for every seller interested in selling products on Amazon. Every product or service comes with a GST tax. Is it true in reality? Actually not! There are some products, services, or items, which are exempt from GST or come at a GST-free cost. Some people really do not know that GST is not applicable to every item or product sold in the market. There is a complete list of items that come at no GST. Read further to get an idea :

GST Categories 

It may be something new to you, but yes of course, there are 2 different product categories in regard to taxation such as GST levied and GST exempt. Items or products upon which GST is applied are GST levied items or products. Those items or products which are exempted from tax liability are known as GST exempt items or products. The GST exemption can be particular for some specific goods and services, or businesses or items.

Have a look at GST exempt products on Amazon :

Make sure you know that there are certain cases only in which the GST exemptions are permitted. According to Section 6 and Section 11 of the GST Act, there are 3 reasons for exempting GST from any item or product :

  • Special Order : 

There are certain cases, in which the GST council may recommend an exemption to the State or Central Government. In such scenarios, an exceptional exemption may be applied by the State or Central Government by special order in each scenario.

  • General Exemption : 

The Central Government can grant general exemption entirely or partially on the recommendations of the GST Council when it feels compulsory for the public interest. The GST exemption may be either conditional or absolute as stated under the notification.

  • Notification : 

The GST exemption is granted on particular goods via an official notification.

If any item category on Amazon falls under any of these conditions, it will be considered a GST exempt item. Check out the below-mentioned list of exempt items on Amazon, which is as follows :

  • Food : 

This category comes under the GST exemption. Food items such as unprocessed tea leaves, cereals, edible fruits and vegetables (not processed or frozen), unroasted coffee beans, jaggery, tender coconut, edible roots, fish, tubers, and meat (not processed or packaged), turmeric, salt, betel leaves, seeds, papad, eggs, puffed rice, dairy products, unpacked paneer, non-branded natural honey, non-branded gram flour, flour, whole flour, supplements, poultry and cattle feed, aquatic feed, and many others.

  • Raw Materials : 

Silk waste, raw silk, jute, wool, handloom fabrics, charcoal, raw jute fiber, cotton utilized for khadi yarn, etc.

  • Tools or instruments : 

Tools used for agricultural work, hand tools such as shovels and spades, hearing aids, handmade musical instruments, implements and aids for physically challenged people, etc.

  • Miscellaneous items : 

Human hair, books, newspapers, maps, journals, beehives, live animals (except horses), non-judicial postal items or stamps, educational services, coloring or drawing books for kids, bangles, human hair, semen, blood, chalk sticks, kites, items utilized in pooja such as bindi, idols, kumkum, Gandhi topi, organic manure, vaccines, Indian national flag, contraceptives, and many others.

These products are exempt from GST.



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