GST RATES ON GOODS AND SERVICES
Ever since GST or Goods and Services Tax regime was announced, there has been a wide speculation about the GST rates bracket. The GST Council is the body that decides the rate slabs and the GST Council has been periodically revising the list of goods and services for each rate slab.
It’s clear that the Government’s intentions are to have lower tax rate for goods and services which are essential needs and higher tax rates for goods and services that are considered as luxury supplies.
Various GST Tax Slabs in India 2020
In India, there are 4 types of GST rates:
GST Tax Slab of 5%
Under this slab, the goods of basic amenities are covered such as sugar, oil, spices, coffee, coal, fertilizers, tea, ayurvedic medicines, agarbatti, sliced dry mango, cashew nuts, sweets, handmade carpets, lifeboats, fish fillet, unbranded namkeen, and life-saving drugs are covered.
The services under this slab include railways, airways, takeaway food, AC and Non-AC restaurants, hotel rooms with a tariff less than Rs. 7,500, and special flights for pilgrims.
GST Tax Slab of 12%
Under this slab, products like cell phones, sewing machine, umbrella, jewelry box, along with processed foods like frozen meat, fruit juices, butter, cheese, ghee are covered
The services under this slab include business class flight tickets and movie tickets below Rs. 100.
GST Tax Slab of 18%
Under this slab products like hair oil, safety glass, pasta, pastries, ice-cream, mineral water, hair shampoo, oil powder, water heaters, washing machine, detergent, scent sprays, leather clothing, cookers, oil powder, cutlery, binoculars, artificial flowers, wristwatches, suitcase, briefcase, shaving, after-shave, furniture, stationery items, mattress monitors, television screen, lithium-ion batteries, video games are covered.
The services under this slab include restaurants within hotels whose tariffs are above Rs. 7,500, actual hotel bill below Rs. 7,500, movie tickets above Rs. 100.
GST Tax Slab of 28%
Under this slab, over 200 products are covered like cars, cigarettes, durable consumer products, high-end motorcycles, pan masala, weighing machine, cement are covered.
The services under this slab include racing, betting in casinos, the actual bill of hotel stay above Rs. 7,500.
A special rate of 0.25% is levied on semi-polished and cut stones.
No tax
There are certain goods and services which are not covered under GST, these are:
Goods: Rakhis without precious metals, bread, salt, sanitary napkins, raw material, eggs, besan, flour, natural honey, curd, sindoor, bangles, handloom, newspapers, deities made of stone, kajal, oat, rye, picture books, color books, manuscripts.
Services: The hotels and lodges with tariff below Rs. 1,000, plus IMM course books, bank charges on the savings account.
GST Tax Slab Rates List for Goods
| 5% GST | 12% GST | 18% GST | 28% GST |
|---|---|---|---|
| Spices | Cakes | Washing Machine | Personal Aircraft |
| Frozen vegetables | Drip Irrigation System | Vacuum Cleaner | Sunscreen |
| Rusk | Photographes | Pasta | Tobacco |
| Fish fillet | Pack water bottle of 20 litre | Tyres | Hair clippers |
| Pizza bread | Butter | Biscuits | Bidis |
| Sabudana | Mechanical sprayers | Vanity case | Weighing machine |
| Tea | Ghee | Pastries | Waffles plus wafers which are coated with chocolate |
| Baby milk food | Almonds | Soups | Wallpaper |
| Plain Chapati & Khakhra | Pouches, purses and Handbags | Preserved Vegetables | ATM Vending Machine |
| Floor covering | Fruits | Camera | Yachts |
| Fertilizers | Art ware of iron | Curry paste | Motorcycles |
| Footwear under Rs. 1,000 | Boiled sugar confectionery | Instant food mixes | Ceramic tiles |
| Apparels under Rs. 1,000 | Packaged coconut water | Shampoo | Dishwasher |
| Real zari | Pickle | Printers | Aerated Water |
| Agarbatti | Mirrors framed with Ornaments | Mixed condiments | Pan Masala |
GST Tax Slab Rates List for Services
| GST Slab Rate | Services |
|---|---|
| 5% | Aircraft Leasing |
| Crude and Petroleum products Transport | |
| Passenger transport in economy class by air | |
| Newspaper printing | |
| Passenger transport by cabs and radio taxi | |
| Restaurants both AC and Non-AC | |
| Job work done for leather and footwear goods | |
| Ad space selling in print media | |
| Tailoring | |
| Takeaway Food | |
| Restaurants with turnover of Rs. 50 lakhs | |
| 12% | Air travel apart from economy class |
| Common Effluent treatment plants | |
| Movie tickets priced up to Rs. | |
| Building construction for sale Hotel accomodation with per room per night charge up to Rs. 7,500 |
|
| Temporary basis IP rights | |
| Crude or natural gas mining and drilling. | |
| 18% | Outdoor Catering |
| Theme parks, water parks, circus, folk, theatre, drama, classical. | |
| IT services | |
| Hotel stay with bill above Rs. 7,500 | |
| Room tariff above Rs. 2,500 but less than Rs. 5,000 per room per night in Hotels, inns, and guest house. | |
| Telecom services | |
| 28% | Food/Drinks/Stay at AC Five Star Hotels |
| Betting at race club and gambling | |
| Hotels, inns, guest house with room tariff above Rs. 5,000 | |
| Cinema |
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