GST rates refer to the percentage of tax imposed on the sale of goods or services under CGST, SGST and IGST Act.
The primary GST rates for any regular taxpayers are 0%, 5%, 12%, 18% and 28%. Other GST rates which are used lesser are 0.25% and 3%.
Changes/Clarifications in GST Tax Rates
The GST Council inter-alia made the following recommendations relating to changes in GST rates, provide relief to individuals, measures for facilitation of trade and measures for streamlining compliances in GST.
Namkeens and Extruded/Expanded Savoury food products
The GST rate for extruded or expanded savory products (excluding un-fried or un-cooked snack pellets) falling under HS code 1905 90 30 has been reduced from 18% to 12%, aligning with rates for items like namkeens, bhujia and mixtures under HS code 2106 90.
However, the 5% GST rate will still apply to un-fried or un-cooked snack pellets made through extrusion.
The 12% reduced rate on these extruded products falling under HS 1905 90 30 is applicable prospectively.
Cancer Drugs
The GST rate on cancer drugs namely, Trastuzumab Deruxtecan, Osimertinib and Durvalumab to be reduced from 12% to 5%.
Metal Scrap
A Reverse Charge Mechanism (RCM) will apply on metal scrap supplies from unregistered to registered persons.
The supplier must register for GST if exceeds the threshold limit. However, the recipient is liable to pay tax under RCM, even if the supplier remains below the threshold.
A TDS of 2% will be applicable on supply of metal scrap by registered person in B to B supply.
Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways
To clarify that Roof Mounted Package Unit (RMPU) Air Conditioning Machines for Railways would be classified under HSN 8415 attracting a GST rate of 28%.
Car and Motor cycle seats
To clarify that car seats are classifiable under 9401 and attract a GST rate of 18%.
GST rate on car seats classifiable under 9401 to be increased from 18% to 28%. This uniform rate of 28% will be applicable prospectively for car seats of motor cars in order to bring parity with seats of motorcycles which already attract a GST rate of 28%.
FAQs
Businesses with a turnover exceeding Rs. 40 Lakhs (for goods) and Rs. 20 lakhs (for services) must register for GST.
GST returns can be file online through the GST portal by logging in with your GSTIN.
Under RCM, the recipient of goods/services is liable to pay GST instead of the supplier.