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Gst Rates

GST Rates are the charges implied on sales of goods and services provided across various sectors in India. GST Rates are fixed based on the discussions of the State and Central Government. GST Rates charged by both the State and Central Government are discussed in this article. Do check and be aware of the GST Rates Today.

Last modified:2019-08-24


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An Overview of GST Rates 

GST stands for Goods and Services Tax which came into effect from July 1, 2017 through the implementation of One Hundred and First Amendment of the Constitution of India. GST is the indirect tax imposed by Indian government on the sales of goods and services provided. Before GST came into existence the taxes were charged under different categories both by Central and State Government. VAT, Central Excise Tax, Services Tax, etc are all replaced by Single taxing system i.e. GST. Before GST could be implemented, number of discussions and amendments were made before finalising the GST rates. Now the GST broadly applied in two categories - State GST and Central GST. Under SGST and CGST, there are different tax rates implied for different products and services. A detailed note on both SGST rates and CGST rates are all given in the content below,

What was the Method Followed Before GST Rates?

State Value Added Tax (VAT), Central Excise Tax, Services Tax,  Central Sales Tax, etc are all replaced by the single entity called GST (Goods and Services Tax). Value Added Tax was mainly for the taxes at State level across all states in India. Now on introduction of GST, VAT is replaced by State GST or SGST and the State VAT department will be simply converted to SGST Departments. More details on SGST are given below. Similarly, Central Excise Tax that is the central tax for the goods and services are now replaced with Central GST or CGST. More details given under respective heading below.

What was the GST Rates that was Practised Earlier?

As said in the Introduction, GST was implemented in the year 2017 on July 1st. When Gst was first introduced, the charges were broadly divided for State and Central GST. When compared to the earlier taxing system, newly introduced GST rates were higher. When GST was first introduced it had five tax slabs and the goods and services were spread across these tax slabs. This GST rates were followed till an amendment to lower the GST rates on selected goods and services were made on 18th January 2018 at 25th GST Council Meet. After which amendments were made on 29 Goods and 53 Services which came to effect from 25 January 2018. GST rates major goods till January 25, 2018 are listed below.
 

0% GST Rate

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 etc.

5% GST Rate

Fish fillet, Cream, skimmed milk powder, branded paneer, frozen vegetables, Coffee, Tea, Spices, pizza bread, Rusk, Sabudana, Kerosene, Coal, Medicines, Stent, lifeboats

12% GST Rate

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, and cellphones

18% GST Rate

Flavoured refined sugar, Pasta, Cornflakes, pastries and cakes, preserved vegetables, jams, sauces, Soups, ice cream, instant food mixes, mineral water, Tissues, Envelopes, Tampons, notebooks, steel products, printed circuits, Camera, speakers and monitors.

28% GST Rate

Chewing gum, Molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, 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, and yachts

What are the Current GST Rates?

With the introduction of GST in July 2017, the tax rates on most on the basic commodities also remained high. But on the 25th GST Council Meet it was proposed to reduce the GST rates on selected goods and services. Based on this, GST Rates were revised on January 18, 2018 and the revised GST rates for both Central and State Came into effect on January 25, 2018. The rate were revised on 29 Goods and 53 Services. GST Rates were revised from 28% to 18%, 28% to 12%, 18% to 12%, 18% to 5% and few were charged NIL GST. And for very few products there was raise in GST Rates.
 

Goods taxed at 0%

Vibhuti, De-oiled rice bran and parts used to manufacture hearing aids

Reduced from 28% to 18%

Old and used motor vehicles [medium and large cars and SUVs] with a condition that No ITC is availed, Public transport Buses that run on Biofuel

Reduced from 28% to 12%

For Old and used motor vehicles [other than medium and large cars and SUVs] with a condition that No ITC is availed

Reduced from 18% to 12%

Sugar boiled Confectionery, Drinking water, packed in 20 litres bottles, Biodiesel, Drip irrigation system including laterals, sprinklers, Mechanical Sprayer, Certain listed Bio-pesticides (12 in nos), Fertilizer grade Phosphoric acid, Bamboo wood building joinery

Reduced from 18% to 5%

LPG supplied to  Household Domestic Consumers, Raw materials and Consumables needed for Launch vehicles, Satellites and Payloads (Both CGST and IGST Rates), Tamarind Kernel Powder, Mehendi paste in cones

Reduced from 12% to 5%

Articles of straw, of esparto or of other plaiting materials, Velvet fabric [with a condition that no refund is claimed on ITC]

Reduced from 3% to 0.25%

Diamonds and precious stones

Rate Increased - 0% to 5%

Rice bran (other than de-oiled rice bran)

Rate Increased - 12% to 18%

Cigarette filter rods

What is the GST Rate for Goods?

Goods and Services Taxes implemented in 2017 had separate taxing for Goods.  The Council has broadly approved the GST rates for goods at nil rate, 5%, 12%, 18% and 28% to be levied on certain goods. GST on Goods are taxed under both State GST and Central GST. Check for Detailed GST rates for Goods  - GST Rate Schedule for Goods.

What is the GST Rate for Services?

Like Goods tax under GST, Services had different tax rates. The Council has broadly approved the GST rates for services at Nil, 5%, 12%, 18% and 28% as listed below. Various Services GST rates charged are listed in the given link - GST Rates for Services.

e-Way Bill

The discussions on eWay Bill on the 25th GST Council Meet the decision was made to hold the eWay Bill that was to be implemented from February 1, 2018. But on the 26th GST Council Meet decision was made to implement inter-state movement of goods from April 1, 2018 and the intra-state movement of goods was to be implemented in four phases from April 15, 2018 and all the states to be covered under within June 1, 2018. As per the implementation eWay Bill Fully came into existence.

What is e-Way Bill?

eWay Bill is an electronic way bill for movement of goods which can be generated on the eWay Bill Portal. Transport of goods of more than Rs. 50,000 (Single Invoice/bill/delivery challan) in value in a vehicle cannot be made by a registered person without an eway bill. Alternatively, eWay Bill can also be generated or cancelled through SMS, Android App and by Site-to-Site Integration(through API). When an eway bill is generated a unique eWay Bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

What are the Upcoming Products in the GST Slab?

Most of the goods and services are listed in the GST slab already. With the motive regulate and have control over certain left out products, the government has decided to include some products in the coming future under the GST slab. According to the Finance Minister Arun Jaitley, some products may be included in the GST rates lists by also reducing the GST rates of some products. The products which are expected to be included in the GST Slab are listed below.
  • Petrol
  • Diesel
  • Land 
  • Electricity 
  • Others 

Information on GST Council Meetings

GST Council meetings are conducted to discuss about different aspects of GST. In this council meetings, the committee considers about the various products are to be included in the GST slab and what is the percentage of GST to be charged for. They also consider the impact of GST in the economy and discuss to make important decisions related to GST. So far there had been 28 GST council meetings held and among which the 28th meeting held on 21st July 2018 had major changes in the GST rates of the country. Some of the major changes that was implemented in the meeting are listed below.
  • Simplified monthly returns
  • GST Returns of Small Taxpayers
  • NIL Return filing by SMS
  • GST Migration Re-opened
  • Changes in GST Rates

What is the Impact of GST Rates in the Economy?

GST has brought various changes in the economy related to the goods and services. GST rates has brought both advantage as well as slight difficulty to different classes of people. Though there was protests took place by the merchants and traders related to the GST rates, the ultimate consumer was indeed beneficial. The benefits of GST has outnumbered and some of them are listed below.
  • Earlier different forms of taxation was followed and now it is converted into single uniform tax named as GST.
  • GST avoids lots of confusion in taxation.
  • Price of the goods and services are brought down to help the ultimate consumer to have benefits over the changes.
  • It also has brought competition between products in the Indian market.
  • GST has also paved way for the products to enter into the global market.
  • GST has resulted in increase in production which in turn increases exports.

 

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