Neutral:
It is the return path for an AC circuit which is supposed to carry current in normal condition. This current may be because of many reasons, primarily because of phase current imbalance and some time because of 3rd and 5th harmonics also. This neutral wire is given to ground (by grounding) to make the second terminal of neutral wire at zero potential.
Earth or Ground:
It is for safety concerns against leakage or residual currents on the system via least resistance path. While phase and neutral is connected to main power wiring, earth may be connected to the body of equipment or to any system which in normal condition doesn’t carry current but in the case of some insulation failure, is supposed to carry some minor current.
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