Difference between Nil Rated Goods and Exempted Goods in VAT/CST

Nil Rated Goods

Exempted Goods

It means VAT/CST is not payable on goods in specified circumstances

For example

Export Sales

It means rate of goods is 0%

In such a case, I.T.C. can be utilized for payment of VAT on taxable goods sold within India.

In this case, Input not available