GST Rates on Goods and Services in India
GST is the biggest tax-related reform in the country bringing uniformity in the taxation structure. There is a lot of confusion regarding the Goods and Services Tax (GST) in the market. GST was introduced in July 2017 with an aim to make India “one nation”, “one market”, “one tax”. With the rollout of GST, tax slab for various Goods and Services changed. The government has categorized 1211 items under various tax slabs. Here is the list of GST Rates on Goods and Services in India.
The Government has proposed a 4 tier tax structure for all the goods and services- under 5%, 12%, 18%, and 28%. After the recent revision of GST, there are some products that full under the four tax slabs along with no Tax.
GST Rates on Goods and Services:
- No Tax: Hulled cereal grains like barley, wheat, oat, rye, etc, Bones and horn-cores unworked and waste of these products, Palmyra jaggery, All types of salt, Dicalcium Phosphate (DCP) of animal feed grade, Kajal [other than kajal pencil sticks], Picture books, colouring books or drawing books for children, Human hair – dressed, thinned, bleached or otherwise worked, Sanitary Napkins, Unit container-packed frozen branded vegetables (uncooked/steamed), Vegetables preserved using various techniques including brine and other preservatives that are unsuitable for immediate human consumption, Music Books/manuscripts.
- 5% Tax Slab: Cashew nuts/cashew nuts in shell, Ice and snow, Bio gas, Insulin, Aggarbatti, Kites, Coir mats, matting and floor covering, Pawan Chakki that is Wind-based Atta Chakki, Postage or revenue stamps, stamp-postmarks, first-day covers, etc., Numismatic coins, Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability, Fly-ash blocks, Walking sticks, Natural cork, Marble rubble, Accessories/parts for carriages designed for differently-abled individuals.
- 12% Tax Slab: Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly, Ketchups, sauces and mustard sauce but excluding curry paste, mayonnaise and salad dressings, mixed condiments and mixed dressings, Bari made of pulses including mungodi, Menthol and menthol crystals, peppermint, fractionated mentha oil, Mentha piperita oil and spearmint oil, All diagnostic kits and reagents, Plastic beads, Exercise books and notebooks, Glasses for corrective spectacles and flint buttons, Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, Fixed Speed Diesel Engines, Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc., Intraocular lens, Corrective spectacles, Playing cards, chess board, carom board and other board games, like ludo, etc., Debagged/roughly squared cork, Items manufactured from natural cork, Agglomerated cork.
- 18% Tax Slab: Kajal pencil sticks, Dental wax, Plastic Tarpaulin, School satchels and bags other than of leather or composition leather; toilet cases, Handbags and shopping bags of artificial plastic material, cotton or jute; Handbags of other materials excluding wickerwork or basket work, Headgear and parts thereof, Precast Concrete Pipes, Salt Glazed Stone Ware Pipes, Aluminium foil, All goods, including hooks and eyes, Rear Tractor tyres and rear tractor tyre tubes, Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle, Weighing Machinery other than electric or electronic weighing machinery, Printers other than multifunction printers, Ball bearing, Roller Bearings, Parts & related accessories, Transformers Industrial Electronics, Electrical Transformer, Static Converters (UPS), CCTV including CCTV with video recorders, Set-top Box for TV, Computer monitors not exceeding 17 inches, Electrical Filaments or discharge lamps
- 28% Tax Slab: The council meeting was held to reduce tax rates on certain items based on customer preferences. Hence, no additional items were added to the highest GST slab of 28%.
- No Tax: Chargeable Services offered on Basic Savings Bank Deposit (BSBD) account opened under the PMJDY (Pradhan Mantri Jan Dhan Yojana).
- 5% Tax Slab: Railways-Transportation of goods, passengers, Goods transported in a vessel from outside India, Renting a motor cab without fuel cost, Transport services in AC contract/stage or radio taxi, Transport by air (scheduled)/air travel for purpose of pilgrimage via chartered/non-scheduled flights, Tour operator services, Leasing of aircrafts, Print media ad space, Working for printing of newspapers.
- 12% Tax Slab: Rail transportation of goods in containers from a third party other than Indian Railways, Air travel excluding economy, Food /drinks at restaurants without AC/heating or liquor license, Renting of accommodation for more than Rs.1000 and less than Rs.2500 per day, Chit fund services by foremen, Construction of building for the purpose of sale, IP rights on a temporary basis, Movie Tickets less than or equal to Rs. 100.
- 18% Tax Slab: Food/drinks at restaurants with liquor license, Food /drinks at restaurants with AC/heating, Outdoor catering, Renting for accommodation for more than Rs.2500 but less than Rs.5000 per day, Supply of food, party arrangement, Circus, Indian classical, folk, theatre, drama, Supply of works contract, Movie Tickets over Rs. 100.
- 28% Tax Slab: Entertainment events-amusement facility, water parks, theme parks, joy rides, merry-go-round, race course, go-carting, casinos, ballet, sporting events like IPL, Race club services, Gambling, Food/drinks at AC 5-star hotels, Accommodation in 5-star hotels or above.