<Li> For tax - free--i.e., "zero - rated"--sales, GST is charged by suppliers at a rate of 0% so effectively there is no GST collected . However, when a supplier makes a zero - rated supply, it is eligible to recover any GST paid on purchases used in producing the particular supply or service . This effectively removes the cascading tax from these particular goods and services . <Ul> <Li> Common zero - rated items include basic groceries, prescription drugs, inward / outbound transportation and medical devices (GST / HST Memoranda Series ME - 04 - 02 - 9801 - E 4.2 Medical and Assistive Devices). Certain exports of goods and services are also zero - rated . </Li> </Ul> </Li> <Ul> <Li> Common zero - rated items include basic groceries, prescription drugs, inward / outbound transportation and medical devices (GST / HST Memoranda Series ME - 04 - 02 - 9801 - E 4.2 Medical and Assistive Devices). Certain exports of goods and services are also zero - rated . </Li> </Ul> <Li> Common zero - rated items include basic groceries, prescription drugs, inward / outbound transportation and medical devices (GST / HST Memoranda Series ME - 04 - 02 - 9801 - E 4.2 Medical and Assistive Devices). Certain exports of goods and services are also zero - rated . </Li> <Li> For tax - exempt supplies, the supply is not subject to GST and suppliers do not charge tax on their exempt supplies . Furthermore, suppliers that make exempt supplies are not entitled to recover GST paid on inputs acquired for the purposes of making the exempt good or service . Tax - exempt items include long term residential rents, health and dental care, educational services, day - care services, music lessons, legal aid services, and financial services . </Li>

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