Difference between zero rated supplies and exempted supplies under GST law

All goods and services exported are zero rated supplies. Zero rated supply is defined under Section 16 of IGST Act,2017.That means tax is payable on exports but exporter would get the refund.

Or the exporter can export goods and services under bond/ LUT without payment of tax and be entitled to refund of tax paid on inputs/ input services used in the exported goods and services.

Refer Section 16 of IGST Act,2017 for better understanding.

On the other hand, exempted goods means, tax is exempted by the Government through a Notification issued under Section 11 of CGST Act 2017. For example, loose rice is exempted from payment of GST through Notification 2/2017- CTR.