What is the primary difference between a "Zero-Rated Supply" and an "Exempt Supply"? 

This is a crucial distinction. In zero-rated supplies, the entire value chain is tax-free because the supplier can claim Input Tax Credit (ITC). For exempt supplies, the supplier cannot claim ITC on inputs. The primary difference between a Zero-Rated Supply and an Exempt Supply is the ability to claim Input Tax Credit (ITC). Zero-rated supplies (e.g., exports, SEZ supplies) charge 0% tax, and businesses can reclaim ITC on inputs. Conversely, exempt supplies (e.g., essential goods, health services) are completely free of GST, but businesses cannot claim any ITC on inputs, making the cost of inputs part of the final price.