GST Rate Structure
The GST council has lifted the veil from GST
rates across goods and services. Find out what rates will be applicable
on different goods and services.
For more information visit https://cleartax.in/s/gst-rates
GST
council has made the much-awaited announcements around tax rates on
various categories of goods on day one of a two-day meeting of the said
council at Srinagar. There has been a hype around these rates for a
while and now these rates are finally in the public domain.
Simplify Your GST Filing & Invoicing
Get Trained & Try Cleartax GST Software for FREE
We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under:
GST Rates Structure
| Tax Rates | Products |
| 5% | Edible oil, sugar, spices, tea, coffee (except instant) Coal (instead of current 11.69%) Mishti/Mithai (Indian Sweets) Life-saving drugs |
| 12% | Computers, Processed food |
| 18% | Hair oil, toothpaste and soaps (currently at 28%) Capital goods and industrial intermediaries (big boost to local industries) |
| 28% | Small cars (+1% or 3% cess) Consumer durables such as AC and fridge Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess) High-end motorcycles (+15% cess) Beedis are NOT included here |
- In addition to the above, a few other items were mentioned in the
Council’s announcement of rates. These items, and the applicable rates
on them are as follows:
- Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!
- The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.
- Coal to be taxed at 5 percent against current 11.69 per cent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.
- Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!
- The ‘mithai’ from the neighbouring sweet shop might lose some of its flavour as Indian sweets will now be taxable at 5 per cent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.
- for restaurants serving alcohol, the tax bracket will be 18 per cent
- education, healthcare are going to be exempted from GST
- services on Non-AC restaurants will be 12 per cent
Download Complete Chapter Wise List of GST Rates for Services
Download Complete Chapter Wise List of GST Rates for Goods
✍ Share Your Knowledge with Our Community!
get rewards for paying bills
upto ₹250 off when you pay your first bill on CRED