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Compare zero rated supplies with exempted supplies.

Answer»
Zero rated suppliesExempted Supplies
Zero Ratingmeans that the tax payable on supply of acommodity is fixedat0%.Exempted Supplies means that the tax payable is exempt.
In case of Zero rated supplies, prior stage tax is allowed to be set off and effectively the entire tax paid on inputs used in export is eligible forrefund.In exempted supplies, no benefit of prior stage tax is allowed.


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