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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