Uncover GST Exempt Categories Available on Amazon.in
As a part of the Indian Tax system, Goods and Services Tax (GST) has become an essential component to replace multiple indirect taxes. Whether it’s the VAT, excise duty, or services tax, GST turns out to be a single domestic indirect tax that streamlines the taxation system. However, GST is not levied on all the products and services and hence, they are exempted from the taxation process. Specifically, in the case of Amazon, there are some products of certain categories that get exempted from GST. Let’s dive in further to check the GST exempt categories, so that, informed purchase decisions can be made while shopping from Amazon.
Non-branded food items
Daily essentials like pulses, rice, wheat, vegetables, and fresh fruits are classified as non-branded or unpackaged products. On Amazon, these grocery and food items are exempted from GST while maintaining their affordability for consumers. Nevertheless, if these commodities are purchased in a packaged way as offered by various brands, then, GST will be levied on them.
Healthcare and medical products
Among the healthcare products, some of the items are GST exempt or may have lesser GST billing. These may include healthcare equipment meant for disabled people and blood & organ donation-related items and some life-saving drugs are exempted from GST. Besides, some over-the-counter medicines may levy lesser taxes while making the purchase reasonable for consumers.
Books & educational material
Books and knowledge-based products are exempted from GST on Amazon including reference materials, textbooks, journals, etc. To promote literacy and education, these products are GST-free. However, specialized reference materials and e-books may levy a lesser GST rate while being ordered from Amazon.
Educational services
Even though, these services may not be available on Amazon, but, sellers who provide educational software, resources, and other learning courses, experience the GST exemption. The schools or training institutes witness GST exemption to reduce the additional expenses of students and educators.
Handmade and traditional products
Products that are hand-crafted by artisans have been exempted from GST. The items in this category include hand-made jute products, handloom fabrics, and non-branded pottery. On Amazon, many sellers focus on selling eco-friendly and traditional handicrafts and due to GST exemption, these products remain affordable for consumers.
Agricultural tools & products
The manually used agricultural products like seeds and fertilizers are GST exempt to promote ease of accessibility for farmers. Without letting any financial strain affect farmers who require assistance in agricultural implementation, the sellers on Amazon offer a wide range of products that are exempted from GST.
Looking for professional assistance in managing the seller account while classifying product categories based on GST exemption? Reach out to Selling OS and seek expert guidance and a roadmap for account management.
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