Snapshot Regarding GST Tax List

As GST is less than a week away, still this new tax regime has been proclaimed as one of the biggest tax reforms in India since independence. The Central Board of Excise and Customs(CBEC) has issued a list relating to the tax slabs of 0, 5, 12, 18 and 28 per cent tax under GST.

Let's check out GST tax rate list rolling out on applicable items as under:

No Tax Rate

The household items which will have no tax regime are classified as follows:

• Unpackaged food grains
• fresh vegetables
• Unbranded atta/maida/besan
• Gur
• Milk
• Eggs
• Curd
• Lassi
• Unpacked paneer/natural honey
• Prasad
• Palmyra Jiggery
• Salt
• Kajal
• 'Phool-bhari jharoo'
• Children's drawing/colouring books

5 per cent Tax Rate

Sugar, tea, roasted coffee beans, edible oils, skimmed milk powder, milk food for babies, packed paneer, cashew nuts, raisin, PDS (Public Distribution System) kerosene, domestic LPG, footwear up to ₹ 500, Apparel up to ₹1,000, agarbatti (incense sticks), coir mats, matting and floor covers come under 5 per cent tax rate.

12 percent Tax Rate

Butter, ghee, almonds, fruit juice, packed coconut water, preparations of vegetables, fruits, nuts or other parts of plants including pickle, murabba, chutney, jam, and jelly, umbrella and mobiles fall under 12 percent GST Tax rate category.

18 percent Tax Rate

Hair oil, toothpaste, soap, pasta, corn flakes, soups, ice cream, toiletries, computers, and printers come under 18 percent Tax rate

28% Tax Rate on Goods

  

The highest GST rate of 28% fall in the category of items such as chewing gum, molasses, chocolate not consisting of cocoa, waffles and wafers coated with chocolate, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, motorcycles, aircraft for personal use.

28% GST on Services

28% GST  rate  falls under service sectors such as 5-star hotels, race club betting, and cinema.

GST Rate on Gold and Jewellery

The GST tax rates will also apply to Gold and Jewellery as well. If the customer returns the jewellery to the seller, the 18% tax paid during purchase cannot be reclaimed. In other words, the cost of the jewellery will minimize by 18% GST paid during purchase. However, the buyers will be extremely impacted. The government is still considering over the mechanism for GST. Therefore, the effect could be hardly seen but the change would be clearly witnessed at the time of more information flows as per GST rules.

As per the present norms, under GST, gold ornaments would levy a tax rate of 18%, which the jeweller can accommodate with input credit. This 18% tax has to be borne by the final customers. Therefore, the final value of the jewellery increases.

GST Rates on Textiles

GST Council has decided to levy 5% across the textile sector so accordingly the products and items used in the textile manufacturing process would be taxed as per the following structure:

GST Tax rate at 12%

1. Wood articles: This consists of all articles of wood such as clothes hangers, spools, cops, bobbins, sewing thread reels, and turned wood for textile machinery.

2. Final manufactured products consisting of wholly made of quilted or textile materials.

GST Tax rate at 18%

1. Textile Oil : Consisting of all textile oils other than those consisting of petrol, diesel, and ATF(Aviation Turbine Fluid).

2. Finishing agents: Consisting of dye carriers, materials used to expedite dyeing or fixing of dyestuffs, dressings, and mordants.

3. Machinery: This consists of all machines used to prepare textile fibres; spinning, doubling or twisting machines and other machinery for manufacturing textile yarns; textile reeling or winding(including weft winding) machines and machines for preparing textile yarns for use on the machines. Also, the machinery for washing, cleaning, wringing, drying, ironing, pressing (including fusing presses), bleaching, dyeing, dressing, finishing, coating or impregnating textile yarns, fabrics or made up textile articles and machines for applying the paste to the base fabric or other support used in the production of floor covering such as linoleum; machines for reeling, unreeling, folding, cutting or pinking textile fabrics.