Your Guide of GST Tax Rate List is Here: Read Now

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.

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.