Write the difference between zero rated supply and exempted supply under the GST Law.

The difference between Exempted Supplies and Zero rated Supplies is tabulated as below: S. No. Basis of Difference Exempted Supplies Zero rated Supplies 1. Meaning As per Section 2(47) of the Central Goods and Services Tax Act, "Exempt supply" means supply of any goods or services or both which attracts nil rate or tax or which may be wholly exempt from tax under section 11 of Central Goods and Services Tax Act, 2017 or under section 6 of IGST Act, 2017 and includes non - taxable supply. As per Section 16 of Integrated Goods and Services Tax Act, 2017, "Zero-rated supply" - means export of goods or services or both or supply of goods or services or both to a SEZ developer or a SEZ unit. 2. Tax treatment No tax on the outward exempted supplies, however the input supplies used for making exempt supplies are not exempt automatically. No tax on the outward supplies; input supplies also to be tax free by way of refund. 3. Input tax credit No ITC on the exempted supplies. Therefore Credit of Input tax needs to be reversed, if taken. Credit of Input tax may be availed for making zero-rated supplies, even if such supply is an exempt supply. ITC allowed on zero-rated supplies by way of set off or refund. 4. Registration requirement Any person exclusively engaged in the business of supplying goods or services or both that are not liable to tax or wholly exempt from tax under the Central Goods and Services Tax or Integrated Goods and Services Tax Act, 2017, shall not be liable to registration. A person exclusively making zero rated supplies may have to register as refund of utilized ITC or integrated tax paid shall have to be claimed. 5. Tax invoice/bill of supply A Registered person supplying exempted goods or services or both shall issue, instead of a tax invoice, a bill of supply. Normal Tax invoice shall be issued with declaration Supply meant for Export/ Supply to SEZ unit or Developers.