GST Rates in India

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Pramit Pratim Ghosh | Nov-21-2019

Introduction

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.

Here’s a curated a list of GST rates structure for various goods and services, classified across the different GST tax slabs –

Essential Goods & Services GST rates: Old v/s New

Items OLD Tax Rate NEW Tax Rate
refrigerators, lithium batteries, vacuum cleaners, grinders, mixers, food processors, water heaters, hair dryers, water coolers, ice cream freezers, scents, perfumes, powder puffs, cosmetics, and electric ironing machines 28% 18%
Sanitary napkins, Stone, marble and wooden deities, Rakhis without precious stones, brooms and commemorative coins , Fortified milk 5% NIL
Handloom items priced below Rs 1,000
Footwear priced below Rs 1,000
Handbags
Jewellery boxes
Wooden photo frames
Stone art wear
Ornamental frame mirrors
Glass art ware
Aluminum art ware
Handmade carpets
Ethanol
12% 5%
Bamboo flooring
Hand-operated rubber rollers
Zip fasteners
18% 12%
All leather items 28% 18%

The GST council recently announced major cuts in taxes of 27 items along with a slew of relief measures to support exporters and small businesses. Here are some items that are set to get cheaper under GST:

Description Present GST Rate New GST Rate
Mangoes sliced dried 12% 5%
Khakra & plain chapati / roti 12% 5%
Packaged Food 18% 5%
Namkeens 12% 5%
Ayurvedic, Unani, Siddha, Homeopathy medicines 12% 5%
Poster Color 28% 18%
Modelling Paste for children amusement 28% 18%
Plastic Waste, Pairing & Scraps 18% 5%
Rubber Waste, Paring & Scrap 18% 5%
Hard Rubber Waste 28% 5%
Paper Waste & Scrap 12% 5%
Duty Credit scrips 5% Nil
Sewing thread of manmade filaments 18% 12%
All synthetic filament yarn, such as nylon, polyester, acrylic 18% 12%
All artificial filament yarn, such as viscose rayon, cuprammonium 18% 12%
Sewing thread for manmade staple fibres 18% 12%
Yarn of manmade staple fibres 18% 12%
Real Zari 12% 5%
Floor Tiles 28% 18%
Cullet or other waste of glass 18% 5%
Fittings for loose leaf binders, or files, letter clips, letter corners, paper clips, staple in strips, 28% 18%
Plain shaft bearing 8483 28% 18%
parts suitable for use solely or principally with fixed speed diesel engine of power not exceeding 15HP 28% 18%
parts for Pumps 28% 18%
E-waste 28% / 18% 5%
Biomass briquettes 18% 5%

GST Exemption List - Goods & Services

As per section 2(47) of CGST Act 2017, an exempt supply means any goods or services or both:

  • which attract nil rate of tax or
  • that may be wholly exempt from tax under section 11 or
  • may be wholly exempt from tax under section 6 of IGST act or
  • including non-taxable supply

Thus, exempt supply includes the supply of following types of goods or services:

  • supply attracting nil rate of tax
  • supplies wholly exempt from tax
  • non – taxable supplies

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