What Are The GST Rates?
Table Of Contents
The GST Council has arranged different things under five distinctive assessment rates: (i) 5%, (ii) 12%, (iii) 18%, (iv) 28%, and (v) 28% with an extra GST pay cess (see Table). While assess rates for a large portion of the products and ventures have been affirmed by the Council, rates for some residual things, for example, rolls, materials, footwear, and valuable metals are relied upon to be chosen in its next meeting on June 3, 2017.
GST Rates Structure-
|5%||Edible oil, sugar, spices, tea, coffee (except instant)Coal (instead of current 11.69%)
Mishti/Mithai (Indian Sweets)
|12%||Computers, Processed food|
|18%||Hair oil, toothpaste and soaps (currently at 28%)Capital goods and industrial intermediaries (big boost to local industries)|
|28%||Small cars (+1% or 3% cess)Consumer durables such as AC and fridge
Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)
High-end motorcycles (+15% cess)
Beedis are NOT included here
No tax will be imposed on items like Jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi. Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, Bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, Cereal grains hulled, Palmyra jaggery, Salt – all types, Kajal, Children’s’ picture, drawing or colouring books, Human hair
Hotels and lodges with tariff below Rs 1,000, Grandfathering service has been exempted under GST. Rough precious and semi-precious stones will attract GST rate of 0.25 per cent
Items such as fish fillet, Apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice and snow, Bio gas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-post marks, first-day covers
Transport services (Railways, air transport), small restraurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.
Apparel above Rs 1000, frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine, cellphones, Ketchup & Sauces, All diagnostic kits and reagents, Exercise books and note books, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Spectacles, corrective, Playing cards, chess board, carom board and other board games, like ludo,
State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab
Most items are under this tax slab which include footwear costing more than Rs 500, Bidi Patta, Biscuits (All catogories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery [other than electric or electronic weighing machinery], Printers [other than multifunction printers], Electrical Transformer, CCTV, Optical Fiber, Bamboo furniture, Swimming pools and padding pools, Curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings
AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels
Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with choclate, 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, will attract 28 % tax – the highest under GST system.
Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, cinema will attract tax 28 per cent tax slab under GST
Everything You Need To Know About GST-
The Goods and Services (GST) is an aberrant tax assessment wherein the majority of the current charges will be converged into a solitary tax collection framework.
Once the GST Bill is passed, it will enable the Center and the states to require circuitous duty on produce, deal and utilization of products and ventures the nation over.
Basically, the Goods and Services Tax would put all assessments required by state and Central government in one wicker bin and union them into a solitary duty framework, in this manner getting rid of different tax assessment and advancing the idea of a typical market for all.
The Goods and Services Tax is represented by the GST Council which is going by the Finance Minister. In Arun Jaitley’s words, “once all different assessments are evacuated, the falling impact is expelled, products will turn out to be somewhat less expensive”.
The greatest test for a smooth GST rollout is coordination amongst states and the Center to guarantee uniform duty rates for good and administrations.
To this impact, the GST Council has endorsed a four-level uniform assessment piece of 5, 12, 18 and 28 for each penny on merchandise and enterprises, in addition to an extra cess on bad mark products, for example, extravagance autos, circulated air through beverages and tobacco items.
Sustenance things won’t draw in any assessment and have been kept in the zero-per penny chunk. So also, oil based goods, albeit included under the GST, will stay in zero expense piece starting at now. Be that as it may, the GST Council is yet to accept an approach whether to hold liquor under the Goods and Services Tax.
With the Goods and Services Tax coming in, Center-level expenses likes Sales Tax, Excise Duty, and state-level duties like Value-included Tax (VAT), Entertainment Tax and Luxury Tax will be subsumed.
On Wednesday, among the four supplemtary GST bills gone in Lok Sabha was the Central Goods and Services Tax (CGST) Bill. The CGST Bill will enable the Central government to impose and gather assess on intra-state supply of products and ventures.
The Integrated Goods and Services Tax Bill 2017 accommodates require and accumulation of expense on between state supply.
The Compensation GST Bill will give remuneration to states to the loss of income they may cause inferable from execution of the Goods and Services Tax.
Clearing up on the provision, Arun Jaitley told the House that no extra assessment will be forced to give remuneration to states, and states will be paid pay inside the current component.
The other bill gone in Lok Sabha related to Union Territory Goods and Services Tax. The bill will empower impose and accumulation of assessment on intra-state supply of merchandise and ventures or both by union domains.