Checklist of Rate of List GST Tax

As Goods and Service Tax has ushered in various segments of Indian economy on July 1, 2017. Let's find out the composition of rate of List GST Tax on different items as under:

No Tax Rate

The following household items don't levy any GST:

• 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 tax rate of 28% comes in the classification 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.

GST Tax Slab for Services

5 percent Tax Rate

The services which fall under 5% tax rate are categorized as follows:

• Transport services like railways and airways
• Transport of passengers by air in economy class
• Supply of tour operators’ services
• Selling of space for advertisement in print media
• Small restaurants with a turnover of ₹ 50 Lakhs
• Transport of passengers by motor cabs and radio taxis

12 percent Tax Rate

The services which fall under 12 % tax rate are categorized as follows:

• Business class air tickets
• Hotels, inns, guest houses, which have a room tariff of ₹1000 and above but less than ₹2500 per room per night

18 percent Tax Rate

The services which fall under 18 % tax rate are categorized as follows:

• AC hotels which serve liquor to customers
• Hotels, inns, guest houses, which have a room tariff of ₹2500 and above but less than ₹.5000 per room per night
• IT services
• Telecom services

28 percent Tax Rate

The services which fall under 28 % tax rate are categorized as follows:

• Race club betting & gambling
• Five-star Hotels
• Entertainment & Cinema
• Hotels, inns, guest houses, which have a room tariff of ₹ 5000 and above per room per night

GST Rates on Restaurants in India

Let's check out the GST rates classification for Restaurants as under:

• 5% GST(CGST+SGST): For the restaurants under Composition Scheme(upto aggregate turnover of  ₹ 75 lakh excluding ₹ 50 lakh limit set for Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Tripura, Sikkim and Himachal Pradesh).

• 12% GST(CGST+SGST): For the restaurants with no air-conditioning in any part thereof and not serving liquor

• 18% GST(CGST+SGST) : For a restaurant with partial or full air-conditioning or serving liquor.

• No limit : For restaurants not falling under GST 28% ambit.

• The rate of tax on food parcel cooked as per order is dependent on the applicability of service of such food in that restaurant

• 12% GST(CGST+SGST): For the rate of parcel of pre-packed and pre-cooked namkeens sold from restaurants.

Note : The rates above clearly indicate that GST rates applicable on supplies made by restaurants in different circumstances. However, the actual GST regime will be lesser due to increased availability of input tax credit.

GST Rates on Textiles

According to GST Council, 5% GST has been levied across the textile sector so accordingly the products and items used in the textile manufacturing process would follow the below mentioned taxation norms:

GST Tax rate at 12%

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

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

GST Tax rate at 18%

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

2. Finishing agents: Involving all dye carriers, materials used to accelerate dyeing or fixing of dyestuffs, dressings, and mordants.

3. Machinery: This entails all machines for preparing 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 manufacturing of floor covering items like linoleum; machines for reeling, unreeling, folding, cutting or pinking textile fabrics.