GST Registration in India, GST Tax Rates

The Goods and Services Tax Council has finalized the tax rates on the 18th of May, 2017.

According to these rates the goods and services would be taxed in India.

The tax rates applying to the goods will be 5, 12, 18 and 28 percent.

Here is your quick guide to GST tax rates.

As the tax will be applicable from 1st July, the businesses are looking for the respective applicable rates. GST rates for most of the products are below 18%. We share here the Goods and Service Tax rate structure. The rate on different product categories is mentioned for a quick glance.

 

The GST rate slab will guide you to know how much tax rate  will apply to your business . The post also shares GST rules for payment and filing returns. For comprehensive tax compliance, ebizfiling.com can provide you the best services.

GST Rate List

A list of all the GST slab rates and product categories is mentioned below. Know the rate for your product to avoid future confusion. The tax rates are uniform across all the states. 

GST Slabs

The GST Council approved the tax rates for 1,211 items out of which:

7% of goods Exempted
14% of goods Under 5% slab
17%of goods Under 12% category
43%of goods Under18% category
19%of goods Under top tax bracket of 28%

 

The list of items and the tax rates they would attract are mentioned below: 

 

No tax(0%) 

 

Goods

 

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.

 

Services

 

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.

 

5%

 

Goods

 

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

 

Services

 

Transport services (Railways, air transport), small restaurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

 

12%

 

Goods

 

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, Spectacl.

 

Know More: GST rate on food items

 

Services

 

State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, Work Contracts will fall under 12 per cent GST tax slab

 

18%


Goods


Most items are under this tax slab which include footwear costing more than Rs 500, Trademarks, goodwill, software, 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

 

Services

 

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

 

28%

 

Goods

 

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 a ..

 

Services

 

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

GST Exemption List

The GST exemption list comprises around 100 products. All the products and services which are basic necessities are under exemption list. All the basic food items like vegetables, flour and other products consumed by the masses do not attract GST. The newspapers, printed books, postal stamps, and judicial papers are also nil rated.

Zero Rated and Zero Percent Goods and Services Tax

Zero rate goods or services refer to the businesses of exports of goods and/or services. Any supply of goods and services to the Special Economic Zone firm or SEZ developer is zero-rated. These goods or services are charged at 0% rate and are eligible for the input tax credit.

 

The rate for gold is set at 3%. Diamonds and precious stones are also under the 3% slab. Jewellery will also attract 3% Goods and Service tax. However, raw diamonds will attract only 0.25%. Readymade garments are under 12% slab.

 

If you are seeking professional advice for your business, get in touch with ebizfiling.com.  who offer you multiple tax-related services all over India with the end to end support team of experienced accountants and legal experts.

How to get GSTIN?

A step by step guide for obtaining your GSTIN.

 

Apply for GST registration online for quicker processing of your application. GST registration is required primarily if your annual sales are more than Rs. 20 Lakh., Apply online for GST. Apply for GST Registration across India with documents, procedures, and Online GSTIN, The process of GST registration involves filling and submitting an online application in order to obtain a unique GST Identification Number (GSTIN).

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