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What are Nil Rated Goods and Exempted Goods?

 

What are Nil Rated Goods?

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Nil rated goods are goods mentioned in CETA but the rate of duty against them is 0%

Example

Bamboos, Common salt, Rock salt

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Are Nil Rated goods excisable goods?

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Yes , because

  1. They are goods
  2. They are mentioned in First and Second schedule of CETA
  3. They are subject to Rate of excise duty (even 0% is rate)

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What are Exempted Goods

These are goods which are mentioned in CETA , rate of duty against them is also mentioned against them but excise duty has been exempted by government by issuing exemption notification

Whether Exempted goods are excisable goods?

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Yes , because

  1. They are Goods
  2. They are mentioned in First and Second schedule of CETA
  3. They are subject to Rate of excise duty (exemption is not relevant)

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  1. Indirect Tax
  2. Excise
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 6 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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