What is the difference between zero-rated supplies and exempt supplies for GST purposes?
Zero-rated supplies are supplies subject to GST at 0%, while exempt supplies are supplies where GST is not chargeable.
What are examples of zero-rated supplies?
Common examples of zero-rated supplies include:
* Export of goods
* International services
What are examples of exempt supplies?
Common examples of exempt supplies include:
* Sale and lease of residential properties
* Interest income from loans
Why is the distinction between zero-rated and exempt supplies important?
The classification may affect the amount of input tax claimable by a business, as GST incurred in making exempt supplies is generally not claimable.
