GST - Introduction
GST legislation has been in place from 1 July 2017. It was the biggest tax-related reform the country has seen, and it has eliminated a lot of cascading taxes that were levied previously. For those who are new to GST, it stands for Goods and Services Tax. It’s a tax classified into three types. The first 2 are taxes that are applied in intra-state transactions, and the latter is for inter-state transactions:
- CGST - Central GST
- SGST - State GST
- IGST - Integrated GST
GST Council revises the GST rates every now and then.
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)
GST Tax Rates on Goods and Services
The GST council has fitted over 1300 goods and 500 services under four tax slabs of 5%, 12%, 18% and 28% under GST. This is aside from the tax on gold that is kept at 3% and rough precious and semi-precious stones that are placed at a special rate of 0.25% under GST.
Consumer and daily necessity goods are low or nil rate of tax whereas goods and services that are luxurious are charged at a higher rate of tax.
Goods like sanitary napkins, raw material used in brooms, Saal leaves and fortified milk, fruits, vegetables, bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom, besan, flour, eggs, stamps, printed books, judicial papers, newspapers are exempt from tax.
GST Rates on Goods
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5% GST Tax Slab Items |
12% GST Tax Slab Items |
18% GST Tax Slab Items |
28% GST Tax Slab Items |
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Sugar |
Ghee |
Biscuits |
Waffles and wafers coated with chocolate |
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Tea |
Butter |
Flavored refined sugar |
Sunscreen |
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Sliced Mango |
Fruit juice |
Movie tickets priced above Rs. 100 |
Dye |
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Ayurvedic Medicine |
Almonds |
Monitors and television screens |
Hair clippers |
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Skimmed milk |
Sugar boiled confectionery |
Tyres |
Ceramic tiles |
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ICDS Food Packages |
20-litre packaged drinking water bottle |
Power banks of lithium ion batteries, small sport-related items, video games, carriage accessories for disabled |
Wallpaper |
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Milk food for babies |
Drip Irrigation System |
Washing machine |
Dishwasher |
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Edible oils |
Biodiesel and select biopesticides |
Vacuum cleaner |
Automobiles Motorcycles |
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Khakra& Plain Chapati |
Mechanical Sprayers |
Cakes |
Aircraft for personal use |
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Roasted coffee beans |
Handbags including pouches and purses |
Pastries |
Pan masala |
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Packed paneer |
Jewelry box |
Preserved vegetables |
Tobacco |
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Frozen vegetables |
Wooden frames for painting |
Soups |
Cigarette |
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Cashew nuts |
Photographs |
Suitcase |
Bidis |
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Spices |
mirrors etc |
Vanity case |
Cement |
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Unbranded Namkeen |
Ornamental framed mirrors |
Briefcase |
Yachts |
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Pizza bread |
Brass Kerosene Pressure Stove |
Chocolates |
Weighing machine ATM |
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Rusk |
Art ware of iron |
Ice cream |
Vending machines |
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Sabudana |
Hearing aid parts and accessories |
Chewing Gum/Bubble Gum |
Aerated water |
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Fish fillet |
Bamboo wood building joinery |
Pasta |
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Packaged food items |
Packed coconut water |
Instant food mixes |
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Fertilizers |
Fertilizer-grade Phosphoric Acid |
Corn flakes |
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Footwear up to Rs. 1,000 |
Preparations of vegetables |
Curry paste |
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Apparels uptoRs. 1,000 |
Fruits |
Mayonnaise |
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Real Zari |
Nuts |
Salad dressings |
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Agarbatti |
Pickle |
Mixed condiments |
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Domestic LPG |
Murabba |
Mixed seasonings |
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Straw, basketware articles, esparto |
Chutney |
Branded garments |
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Velvet Fabric (No Input Tax Refund) |
Jam |
Footwear priced above Rs. 500 |
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Tamarind Kernel Powder |
Jelly |
Headgear |
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Mehndi Paste |
Namkeen |
Soap |
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Scientific and technical instruments |
Bhujia |
Hair oil |
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Floor covering |
Frozen meat products |
Deodorants |
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Plastic Waste |
Packaged dry fruits |
Preparation for facial make-up |
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Satellites and payloads |
Animal fat sausage |
Shaving |
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Ethanol- Solid biofuel pellets |
Non-AC restaurants |
After-shave items |
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Handmade carpets and other handmade textile floor coverings |
State-run lotteries |
Shampoo |
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Hand-made braids and ornamental trimming in the piece |
Exercise books |
Washing Powder |
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Coir mats |
Notebooks |
Detergent |
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Rubber Waste |
Work contracts |
toothpaste |
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Matting |
Apparel above Rs. 1000 |
toiletries |
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Insulin |
Tooth powder |
Kajal pencil sticks |
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Paper Waste |
Spoons |
tissues |
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Medicines |
Umbrella |
computers |
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Stent |
Cake servers |
printed |
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Braille watches |
Sewing machine |
circuits |
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Braille typewriters |
Ladles |
printers |
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Cullet or Scrap of Glass |
Forks |
monitors |
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Braille paper |
Tongs |
camera |
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Hearing aids |
Skimmers |
speakers |
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Postage stamps |
Fish knives |
CCTV |
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Biomass Briquettes |
Mobile |
Electrical transformer |
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Revenue stamps |
Manmade Yarn |
Optical fiber |
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First-day covers |
Diagnostic kits & reagents |
Bidi Patta |
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Special flights for pilgrims (Economy Class) |
Nil Sewing Thread of man made filaments |
Mineral water |
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Stamp-postmarks |
Sewing Thread of Manmade Staple Fibres |
Tissues |
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Glasses for corrective spectacles and flint buttons |
Poster Colours |
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Special flights for pilgrims (Business Class) |
Modeling Paste for Children |
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Movie tickets priced below Rs. 100 |
Envelopes |
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Playing cards |
Some parts of pumps |
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Ludo |
Steel products |
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Carrom board |
Plain Shaft Bearing |
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Chess board |
Stationery items like clips |
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Washing and cleaning preparations |
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Paint |
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Water Heaters |
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Hair Shavers |
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Hair Curlers |
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Hair Dryers |
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Scent Sprays |
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Lithium-ion batteries |
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Varnishes |
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Safety glass |
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Glassware |
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Sheets |
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Fans |
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Light fitting |
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Compressors |
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Pumps |
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Sanitaryware |
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Leather clothing |
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Wristwatches |
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Stoves |
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Cutlery |
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Cookers |
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Juicer Mixer |
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Telescope |
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Binoculars |
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Googles |
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Artificial flowers |
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Artificial fruits |
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Foliage |
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Physical exercise equipment |
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Musical instruments and their parts |
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Electrical boards, panels, and wires |
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TV |
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AC |
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Fridge |
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Razor and razor blades |
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Multi-functional printers |
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Cartridges |
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Aluminum frames |
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Windows |
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Door |
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Water Coolers |
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Water Heater |
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Some Diesel engine parts |
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Stones used in flooring, marble & granite |
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Weighing machinery (non-electrical or electronic) |
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Aluminum foil Furniture |
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Bamboo |
GST Rates on Services
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GST Tax Slabs |
Services |
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5% |
AC and Non AC Restaurants |
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Takeaway Food |
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Restaurants in hotels with a room tariff less than Rs. 7,500 (no input credit for these restaurants) |
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Transport services like railways and airways |
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Transport of passengers by air in economy class |
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Supply of tour operators’ services |
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Selling of space for advertisement in print media |
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Small restaurants with a turnover of Rs. 50 Lakhs |
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Transport of passengers by motor cabs and radio taxis |
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Tailoring services |
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Small house-keeping service providers (No input credit available) |
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Crude and petroleum product transportation |
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Job work for footwear and leather goods |
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12% |
Business-class air tickets |
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Hotels, inns, guest houses, which have a room tariff of Rs.1,000 and above but less than Rs.7,500 per room per night |
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Metro and monorail construction |
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Mining and drilling for crude or natural gas |
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Common effluent treatment plants |
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18% |
Restaurants in hotels with tariffs at over Rs. 7,500 |
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Actual bill of hotel stays below Rs. 7,500 |
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Outdoor Catering (input tax credit to be available) |
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Hotels, inns, guest houses, which have a room tariff of Rs.2500 and above but less than Rs.5000 per room per night |
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IT services |
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Telecom services |
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Theme parks, water parks and alike |
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28% |
Race club betting & gambling |
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Actual bill of hotel stays above Rs. 7,500 |
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Five-star Hotels |
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Entertainment & Cinema |
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Hotels, inns, guest houses, which have a room tariff of Rs.5000 and above per room per night |
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0% |
Hotel accommodation with a transaction value of 1,000 or less per day |
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Group insurance schemes for paramilitary forces under the Home Affairs Ministry |
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GST Rate List by CBIC
Below is the link of CBIC for the rate list of GST products and services as per Chapter and sections:
Goods & Service Tax, CBIC, Government of India:: GST Goods and Services Rates
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