Wednesday, 13 December 2017

In Which GST Slabs Your Sought Out Products & Services Feature?


Goods and Services Tax (GST), without a doubt, is seen as one of the major revolutions in India’s taxation landscape. Subsuming a dozen of central and state level indirect tax levies, the GST has eliminated the hassles of multiple taxes that the business enterprises had to face prior to its launch on July 1, 2017. 


The GST is introduced in four slabs - 5%, 12%, 18% and 28%, something you would be aware of, right? Where does the product, the one you are searching, figure among these four GST Slabs? Wanna know? Stay glued to this article which enlists the products as well as services under different slabs.

List of Products & Services Exempted from GST

Oh, I forgot to say that there are a handful of products where GST won’t be levied. Those products are right below.

  • Milk
  • Salt
  • Bread
  • Vegetables
  • Fruits
  • Eggs
  • Flour
  • Besan
  • Handloom
  • Bangles
  • Newspapers
  • Judicial Papers
  • Printed Books
  • Natural Honey
  • Curd
  • Bindi
  • Sindoor
  • Hotels and lodges with a tariff below ₹1,000

Which Comes Under 5% GST Tax Rate List?

The products and services, which figure under 5% GST slab, include the following -

  • Tea
  • Sugar
  • Skimmed Milk
  • Sliced Mango
  • Ayurvedic Medicine
  • Milk Food for Babies
  • Roasted Coffee Beans
  • ICDS Food Packages
  • Khakra & Plain Chapati
  • Frozen Vegetables
  • Packed Paneer
  • Unbranded Namkeen
  • Spices
  • Cashew Nuts
  • Fish Fillet
  • Rusk
  • Pizza Bread
  • Packaged Food Items
  • Domestic LPG
  • Insulin

Products & Services Featured Under 12% GST Rates Chart

The list of products and services under 12% GST rate comprises the following -

  • Fruit Juice
  • Ghee
  • Almonds
  • Butter
  • Vegetable Preparations
  • Packed Coconut Water
  • Pickle
  • Nuts
  • Chutney
  • Murabba
  • Namkeen
  • Jelly
  • Jam
  • Packaged Dry Fruits
  • Frozen Meat Products
  • Non-AC Restaurants
  • Work Contracts
  • Notebooks
  • Apparel Above ₹1,000
  • Sewing Machine
  • Spoons

Which Products & Services 18% GST Rate Enlist?

Here’s a list of products and services that figure under 18% GST tax rate component.

  • Flavoured Refined Sugar
  • Pastries
  • Cakes
  • Soups
  • Biscuits
  • Preserved Vegetables
  • Vanity Case
  • Suitcase
  • Briefcase
  • Ice Cream
  • Chocolates
  • Instant Food Mixes
  • Chewing Gum
  • Salad Dressings
  • Mayonnaise
  • Branded Garments
  • Hair Oil
  • Soap

28% GST Tax Slab Listers

Now it’s about those featured under the top GST slab which is 28%. Wanna check out the list? Take a look below.

  • Automobiles
  • Vacuum Cleaner
  • Water Heater
  • Washing Machine
  • Wallpaper
  • Paint
  • Dye
  • Hair Clippers
  • Sunscreen
  • Ceramic Tiles
  • Dishwasher
  • Pan Masala
  • Aerated Water
  • Vending Machines
  • Weighing Machine ATM

Now that you are aware of the products and services featured under different GST slabs, you can plan your purchase better.

What’s in Store for Car Buyers?

Of the lists showcased above, you would have noticed 28% tax incidence on automobiles, one of the important sectors of the economy. Within the automobile space, a car garners significant attention from the prospective buyers because of the luxurious feel it incites. Interesting to note is the fact that cars attract 28% GST along with a cess of 15%-25%, depending on the type of vehicle you want to buy. The overall tax rates thus go up to 43%-53% on the cars. While the small, mid and large-size cars attract a tax of 43%, 45% and 48%, respectively, the sports utility vehicle (SUV) would have 50% tax rate to pay on a buy.

How Would GST Impact Loans in India?

Well, the lists above may not have shown anything about the costs pertaining to a loan under the GST regime. But the effect of GST on loans is there. The loans have become dearer, but not much as was shown in the news headlines at the time of GST launch.

A loan comes with charges like processing fee. Prior to the rollout of the GST, banks were charging service tax of 15% on the processing fee amount to arrive at the total. Now with the imposition of 18% GST tax rate, the fee will be 3% up. When you get to see the hike in actual rupee amount, you would say a minuscule rise. So a processing fee of ₹10,000, when added to 15% service tax, was coming to ₹11,500 in the pre-GST era. At 18% GST, the same fee will be ₹11,800, rising by a mere ₹300.












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