Now that GST has become a reality, it would not be wrong to say that the same topic is still a talk of the town. Yes, this hot topic was and is still in the news just because it is not going to impact the economy but it is going to have an impact on a common man’s life as well. After being in news since long time, there is no denying on the fact that everyone is eager and curious to know about Goods and Services Tax. So, moving on with the topic, if we talk about the GST tax rate list, there are four slab structures under which the Goods and Services will be taxed. These four slabs are 5%, 12%,18% and 28%, targeting different goods and services. But before we go ahead with the topic, let’s just discuss what after all GST is all about?
So, it is nothing but an indirect tax regime that will replace the previous structure of multiple taxes levied by the State and Central Government. It is a consumption based tax which is being charged on sale, manufacturing and consumption of goods and services at the national level. However, one thing that needs to be mentioned here is the fact that exports and direct taxes such as income tax, corporate tax, capital gain tax will not be affected by Goods and Services Tax. Moreover, one thing that needs to be mentioned here is the fact that this indirect regime has a dual tax system comprising of-
(Central) CGST- to be charged by Central Government
(State) SGST-to be charged by State Government
(Integrated) IGST-to be charged by Central Government on inter-state supply
Talking about the different tax slabs, there are various products that fall to different slabs. While there are few products which are exempted from the list, hence no tax will be levied on them. So, let’s just take a closer look at these products and know more about them.
0%
Goods: Milk, fruits, vegetables, bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom, besan, flour, eggs, stamps, printed books, judicial papers, and newspapers.
Services: All hotels and lodges who carry a tariff below ₹ 1,000 are exempted from taxes under GST.
5%
Goods: Skimmed milk powder, fish fillet, frozen vegetables, coffee, coal, fertilizers, tea, spices, pizza bread, kerosene, medicines, agarbatti, insulin, cashew nuts, lifeboats etc,
Services:Small restaurants along with transport services like railways and airways will come under this category.
12%
Goods: Frozen meat products, butter, cheese, ghee, pickles, Ayurvedic medicines, sausage, fruit juices, bhujia namkeen, tooth powder, umbrella, instant food mix, cell phones, sewing machine etc.
Services: All Non-AC hotels and business class air tickets
18%
Goods: Flavored refined sugar, corn flakes, pasta, pastries and cakes, preserved vegetables, tractors, ice cream, sauces, soups and mineral water.
Services: All those AC hotels which serve liquor, IT and Telecom services and financial services along with branded garments
28%
Goods:Deodorants, chewing gum, hair shampoo, sunscreen, pan masala, dishwasher, weighing machine, vacuum cleaner. Other items include shavers, automobiles, hair clippers, motorcycles.
Services: Five-star hotels, racing, movie tickets and betting on casinos and racing
Now that you know which products and services are cheaper and which one will be costlier for you, it’s time that you should know more about this hot topic. Well, we are talking about those indirect taxes which GST will not replace. Read the article below to know about the same…
- Export Duty
- Basic Customs Duty
- Toll Tax
- Stamp Duty
- Property Tax
- Road & Passenger Tax
- Electricity Duty
So, as you can see above how this indirect tax regime is not only affecting the economy as a whole, but it is also leaving its impression on common man’s mind. There are a lot of goods which are in the favour of a common man so that it won’t affect his/her monthly budget. But on the other hand, if we look at the services, they have become costlier, allowing you to pay more while availing them. Thus, all in all you can say that GST tax rate list is nothing but a mixed basket filled with joy and a bit of sorrow for a common man.
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