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Commentary

Reduced-rated supplies (India)

22 India

A nominal rate of GST of 0.01% is applicable for supplies of goods to merchant exporters (see 22.62).

A special reduced rate of 0.25% was introduced on 1 October 2019 for cut and polished semi-precious stones. From 18 June 2022, this special reduced rate was increased to 1.5%.

On 7 March 2019, a reduced rate of 3% was introduced for businesses with aggregate turnover of less than INR 5 million in the preceding financial year. Businesses eligible to enrol under the scheme pay a flat rate

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