Gst tax rate in india

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#1

GST is set to roll out on July 1st and finishing touches are being put to the spectacular edifice. A rate card for GST has been finalized which would be felicitous to the economic growth that India envisions to achieve in the coming years. These rates have been finalized by the GST Council headed by the Finance Minister Mr. Arun Jaitley, along with Minister of State for Revenue of Finance, Financial Ministers of Each Individual State in India, and IAS Officer Arun Goyal as the Additional Secretary of the GST.

0% Tax Slab:
The tax rates are set for both goods and services at 5%, 12%, 18% and 28% but to avoid inflation and not to deprive the population of necessities in speculation of increased prices a lot of items of the CPI basket have been kept in the 0% nil tax slab. These items are:

GST TAX RATE IN INDIA
GST TAX RATE IN INDIA
• Live Animals ( other than live horses)
• Edible Meat and Offal(does not include packaged or frozen meat)
• Seafood (does not include packaged and frozen)
• Dairy Produce, natural honey, birds eggs, edible products of animal origin (not bearing a registered brand name)
• Other Animal products
• Live trees and plants
• Edible Vegetables(does not include packaged and frozen)• Edible fruits and nuts(does not include packaged and frozen)
• Coffee, Tea, Mate and Spices( Seeds not processed)
• Cereals
• Mill Products, Malt, Gluten, Starch, Gelatin (not bearing a registered brand name), etc.
• Project Imports, Passenger Baggage, Laboratory Chemicals, Personal Importation, Ship Stores
• States and Chalks
• Medical Instruments
• Aircraft, Space Crafts, and Pats thereof
• Nuclear Reactors, Boilers, Machinery and Mechanical Appliances including their parts

On a perusal of the items in the nil rate basket (98 categories of items), we find that efforts have been made to cover all the basic requirements of the consumers and producers and at the same time an effort has been made to increase the basic living requirements affordable to the maximum population without the burden of taxes.
Even in the services category, fares of metro trains, local trains, tickets of religious places and for Haj, have also been exempted from GST.

5% Tax Slab:
In the 5%, GST Slab is those items which are essential however do not fall under the category of necessities. These items include:

• Processed and Frozen Seafood
• Processed Animal Produce
• Processed Vegetable Produce
• Processed Spices and Condiments
• Preserved and Processed Fruits and Nuts
• Fats and Oils, Processed Edible Fats, Waxes
• Sugar and Sugar Confectionary
• Cocoa and its preparations
• Bakery Products
• Sweetmeats
• Salt, Sulphur
• Building Plasters and Cement, rock and minerals
• Mineral Oils, waxes
• Inorganic Chemicals and Pharmaceutical Products

In this category we mostly found better items in regard to the products excluded from the rate basket and the items have been kept are such that affect aggregate demand with respect to the majority of the population using it and it would help in improving the pace of economic growth.

12% Tax Slab:
This tax slab includes computers and processed food, services like none –AC restaurants, also, premium products of the categories in the 5% slab has been kept at 12% under GST.

• Prosthetic Limbs, Artificial Kidney, Wheelchairs, Walking Frames, Braillers
• Kerosene Pressure Lanterns and its parts
• Cruise Ships, Excursion Boats, Vessels, Warships, Rowing Boats
• Solar Power devices, generating system, lamps, and lanterns
• Biogas Plants and its parts
• Leather and Skin Hides of Animals
• Rubber
In this category, we find things that on one hand are essentials for industries, promote industries and requirements of people which would improve standards of living.

[LEGAL SALAH]
18% Tax Slab:
These products include items that come in the category of wants not needs and the higher rates are set to compensate state governments for lost revenue on the 0% and 5% basket. This category includes:
• Sugar and Sugar Confectionary
• Preparations of cereals and flours like pasta, spaghetti, lasagna, corn flakes, wafers, pastries and cakes
• Sauces and Soups
• Ice cream
• Beverages, Spirit and Vinegar
• Inorganic and Organic Chemical- the largest slab of these products, excluding those already covered in previous slabs.
• Printing Inks, Pigments
• Cosmetic Products like Essential Oils, Perfumeries
• Soaps and Artificial cosmetic waxes
• Photographic and Cinematographic Goods

28% Tax Slab:

This slab contains the luxury goods demanded by the middle-middle class, upper middle class, and the rich people segment and the Government expects that the prices of these would not affect the aggregate demand propelling the country substantially and as such these goods have been kept in this tax slab:
• Luxury Cosmetics,
• Chocolates,
• luggage cases,
• Washing Powder,
• Small Cars,
• Hybrid Motor Vehicles,
• Motorcycles above 350cc,
• Services at 5-star Hotels
• Cinema Halls, Amusement Parks


#2

The author has given an in-depth list of items that have been included under the goods and services (GST) tax along with succinct viewpoint as to the benefit of placing the said items in that particular category. If you want to peruse further information about GST, Latest GST Blogs would be a good place to start.


#3

Hi ,

There are 4 category of rates in GST for products & services

ESSENTIAL @ 5%
SUB STANDARD @ 12%
STANDARD @ 18%
LUXURY @ 28%

to know more about GST visit https://www.gstkeeper.com/


#4

There are four slabs fixed for GST Rates: 5%, 12%, 18% & 28%.

Here’re the GST Tax rate itemwise mentioned in this post. https://www.taxmann.com/blogpost/2000000037/gst-tax-rate-what-are-rate-of-taxes-under-gst.aspx


#5

GST Rate in India: Here are the tax rates for all goods and services. GST Rates in India 2017 (Item Wise GST List PDF) GST tax slabs range from 0% (Nil ) to 31%.

Union Cabinet Approves Raising Levy On Luxury Cars And SUVs. The Union Cabinet on Wednesday approved the hike in cess on luxury cars and SUVs to be increased to 25 per cent from current 15 per cent.

GST Rate Finder app enables users to find out the new tax rates on several goods and services and cross check their bills on the go. Amid efforts by the government towards a smooth, lag-free transition to GST, the Central Board of Excise and Customs has released a mobile app – called GST Rate Finder. Currently available on Android smartphones, the GST Rate Finder app enables users to find out the new tax rates on several goods and services and cross check their bills on the go.

GST Tax Slab Rates List 2017: 5%, 12%, 18% and 28%. Taxes to be subsumed under GST are Excise Duty, Service Tax, Central Sales Tax, Surcharge & Fees, VAT, Taxes on Lottery, Luxury Tax, Entry Tax, Entertainment Tax (These are the parts of Central Tax & State Tax). Category wise products GST Rates List updated (Click Here). Small retailers not hurry in stock up fresh inventory due to unclear vision on GST. Honda Activa & Unicorn prices may drop by 3 – 5% after 1 july 2017.

Firms face ban for not passing on GST gains. HIGHLIGHTS = (1) The cancellation of registration is in addition to the power to levy penalty, (2) Tax practitioners said that cancellation of registration is too harsh, (3) The tax regime will get a mega launch on the night of June 30.

Update of 19 June 2017: GST Council relaxes filing norms for 2 months – GST Council has announced the relaxation of 2 months for filing GST returns by the taxpayers. It means no late fees will be charged till September, 2017 from the taxpayers who going to fill GST.

Impact of GST on Household Expenses
Category Before GST After GST
Food 12.5% 5.00%
Entertainment 30.00% 28.00%
Transportation 15.00% 18.00%
Household – Personal Care 28.00% 18.00%
Mobile Phone 15.00% 18.00%
Insurance Premium 15.00% 18.00%
Credit Card Bills 15.00% 18.00%

SCHEDULE OF GST RATES FOR SERVICES AS APPROVED BY GST COUNCIL

The fitment of rates of services were discussed on 19 May 2017 during the 14th GST Council meeting held at Srinagar, Jammu & Kashmir. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below. The information is being uploaded immediately after the GST Council’s decision and it will be subject to further vetting during which the list may undergo some changes. The decisions of the GST Council are being communicated for general information and will be given effect to through gazette notifications which shall have force of law.

New GST Rates are applicable in all over India – New Delhi, Haryana, Assam, Mizoram, Nagaland, Manipur, West Bengal, Uttrakhand, Rajasthan, Himchal Pradesh, Punjab, Maharashtra, Kerala, Telangana, Tamilnadu, Odisha, Kanyakumari, Goa, Chandigarh, Bihar, Uttar Pradesh, Arunachal Pradesh, Gujarat, Andhra pradesh, Meghalaya. Tripura, Chattishgarh and Madhya Pradesh. Only Jammu kashmir are exempt.


#6

GST is the biggest tax reform in the history of Independent India in the era of Indirect Taxation. Below are Tax Rate Classification

0% - Essential items including food
5% - Common use items
12% - Standard Rates
18% - Standard Rates
28% - Luxury and de-merits goods
0.25% - Rough Stone/Precious stone
3% - Gold