What are differences between exempt GST and 0% GST?

Which goods and services have GST exemption and which are zero-rated (0% GST)? What is the difference?

Most things businesses purchase are taxable, however, there are a few exemption rules and it is important to know the difference. 

GST/HST exempt goods and services 

Some business expenses are exempt from collecting GST on the sale of the goods and services, so when your business buys those items, it does not pay GST. If GST is not paid, your business cannot claim the input tax credits (ITCs).

Examples of GST exempt services are bank fees, insurance, wages and interest on loans. See this list of the most common goods and services that are exempt from GST/HST

GST/HST zero-rated goods and services 

Zero-rated GST is a little different in that you do not collect GST on the supply of goods and services, but you can claim the GST paid on expenses in the business. 

Examples of 0% GST items are basic groceries, prescription drugs and various medical supplies. See this list of zero-rated goods and services