GST Tax Rate Structure

GST has been known as of the foremost vital tax reforms post-independence. it’s a tax trigger which is able to result in business transformation for the trade. Tax Rates for many of the things below the products & services tax has been finalized within the GST Council meeting.

On Sunday (111th June), the GST Council firm to modify tax rates on 66 products and widened the scope of a concessional tax payment scheme for small businesses and restaurants.

Accordingly, tax rates on cashew and pre-packaged food things like pickle, instant food mixes and sauces can fall. Taxes on faculty luggage, insulin, cutlery, ball bearings, and pc printers were conjointly down from the amount determined at the council’s meeting command in Srinagar in might.

The GST Council on Sunday determined to revise tax rates on 66 products and widened the scope of a concessional tax payment theme for tiny businesses and restaurants. Arun Jaitley Finance minister supposed the council went the extra mile to lower the tax burden on many of these items even below the level of the tax load on many of these items even below the level of the tax burden on them currently, taking into account changing expenditure models and economic authenticity. The tax load on some of these items was previously high, he said. The council had received proposals seeking support on 133 items.

GST Tax Rates:

  • On 0% tax rate, products such as food grains, rice, and wheat are included.
  • The first slab is 5% tax rate, on which mass consumption products are integrated like mustard oil, tea & spices.
  • The second slab is 12% tax rate, on which processed food has been included.
  • The third slab is 18% tax rate, on which consumer goods has included such as toothpaste, refrigerator & smart phones etc.
  • The 4th slab tax rate is 28%, on luxury items such as cars & secondly tobacco &aerated drinks are included.

Goods Exempted from GST

  • Salt
  • Honey
  • Printed books
  • Newspaper
  • Meat
  • Fish
  • Fruits & vegetables
  • Bread
  • Curd
  • Bangles & Handloom
  • Aquatic/poultry/cattle feed
  • Papad, Puffed Rice
  • Bangles (non-precious metals)

Differences between existing tax rates and rates after GST on the various products like:

  • Beauty & Personal Care Product
  • Kitchen ware & Appliances
  • Construction
  • Consumer Goods items
  • Lifestyle & Home items
  • Dairy & Farm Products
  • Medical Supplies
  • Metals & Minerals
  • Others

Here, we have compared the rates under GST with the tax Structure. The existing rates may vary from other states

Consumer Goods Items:

[toggle title=”Consumer Goods Items”]

Features Current tax rate % After GST rate %
Aluminium Foil 18.5 28
Agarbatti 0 12
Frozen meat 6 12
Dry Fruits 6 12
Coffee/tea 6 5
Preserved vegetables 0 18
Butter, ghee, cheese 6 12
Jams, jellies 12 18
Branded paneer 0 5
Branded cereals 0 5
Cocoa butter, oils chocolates 26 28
Instant, aroma coffee 26 28
Protein concentrates, sugar syrups 26 28
Razors 26 28
Dental floss 26 28
Toothpaste 26 28
Deodorants 26 28
Aftershave 26 28
Shaving cream 26 28
Soyabean, groundnut, sunflower seeds 6 5
Infant use preparations 19.5 18
Pasta, corn flakes, cakes 19.5 18
Frozen vegetables 6 5
Condensed milk 18.5 18
Toilet paper 18.5 18
Hot water bottles 18.5 18
Petroleum jelly, paraffin wax 20 18
Pencil sharpeners, knives 18.5 12
Ice cream, sherbet 26 18
Refined sugar 26 18
Soap 26 18
Dentrifices – toothpaste 26 18
Hair oil 26 18
Handmade safety matches 18.5 5
Broomsticks 18 5
Candles 26 12
Tooth powder 26 12
Led lights 26 12
Milk beverages 26 12
Ready to eat namkeen/bhujiya 26 12
Beet sugar, cane sugar 26 5
Pickels 18 12

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Lifestyles and Home Products

[toggle title=”Lifestyles and Home Products”]

Items Current tax rate % After GST rate %
Air conditioner 26 28
Refrigerator 26 28
Leather bags 6 28
Cell phones 6 18
Bicycles 18.5 18.5
Yachts 18.5 28
Storage water heaters 26 28
Dish washing machines 26 28
Printer, photocopier, fax machines 26 18
Wristwatches 26 28
Furniture 26 28
Video game consoles 26 28
Exercise equipments 26 28
Sports goods 18.5 12
Spectacle lens 18.5 12
Whey proteins & Fitness supplements 26 18
Hats and other headgears 26 18
Steel utensils 18.5 5

[/toggle]

Construction:

[toggle title=”Construction”]

Items Current tax rate % After GST rate %
Cement 26 30
Paints 28 30
Wallpaper 18.5 28
Putty 26 28
Plaster 26 28
Tempered Glass 26 28
Ceramic tiles 26 28
Sand lime bricks 6 5
Fly ash bricks 6 5

[/toggle]

Medical Supplies:

[toggle title=”Medical Supplies”]

Items Current tax rate % After GST rate %
Human blood 0 0
Condoms/contraceptives 0 0
Glands & other organs 12 12
Ayurvaedic 12 12
Homeopathic 12 12

[/toggle]

Metal and Minerals:

[toggle title=”Metal and Minerals”]

Items Current tax rate % After GST rate %
Peat 19.5 5
All ores and concentrates 18.5 5
Kerosene PDS 17 5
Petroleum coke, petroleum bitumen 27.5 18
Tar 12 5
Coal 12 5
Lignite 12 5
Copper bars, rods, wires 18.5 18
Copper screws, nuts, bolts 18.5 18
Nickel bars, rods, wires 18.5 18
Nickel screws, nuts, bolts 18.5 18
Nickel tubes, pipes, netting 18.5 18
Aluminium ingots, rods, wires 18.5 18
Lead plates, sheets, strips 18.5 18
Zinc goods 18.5 18
Tin bars, rods 18.5 18

[toggle]

Beauty and Personal Care:

[toggle title=”Beauty and Personal Care”]

Items Current tax rate % After GST rate %
Manicure, pedicure sets 26 28
Perfumes 26 28
Beauty or makeup preparations 26 28
Skincare items including sunscreen 26 28
Shampoos, hair cream, hair dyes 26 28
Wigs, false beards, eyelashes 26 28
Kajal 28 18

[/toggle]

Kitchenware and Appliances

[toggle title=”Kitchenware and Appliances”]

Items Current tax rate % After GST rate %
Stoves (except kerosene, LPG) 18.5 28
Electrical hot plates 18.5 28
Aluminium utensils 18.5 12
LPG for domestic supply 17 5
Household copper articles 18.5 5
Copper utensils 18.5 5
Iron/steel/household articles 18.5 5
Iron/steel/kerosene stoves 18.5 5
Steel cutlery 18 12

[/toggle]

Dairy and Farm Products:

[toggle title=”Dairy and Farm Products”]

Items Current tax rate % After GST rate %
Fresh Milk 0 0
Fresh vegetables, roots & tubers 0 0
Fresh fruits 0 0
Fruits & vegetable juices 12 12

[toggle]

Eating out and Phone Call:

[toggle title=”Eating out and Phone Call”]

Items Current tax rate % After GST rate %
Telecom 15 18
Work contract 15 12
Non- A/C alcohol serving restaurant 13-14 12
A/c alcohol serving restaurant 22 18
Five star restaurant 18 28

[/toggle]

Others:

[toggle title=”Others”]

Items Current tax rate % After GST rate %
Rubber Tyres 18.5 28
Steam 0 12
Plastic product 18.5 28
Pianos 26 28
Children’s drawing books 0 0
Calcerous stone 18.5 28
Artists’, students’ or signboards colours 18.5 12
Nuclear fuel 0 5
Heavy water and other nuclear fuels 0 5
Compressed air 0 5
Solar water heater 0 5
Renewable energy devices 0 5
Braille typewriters 13.5 18
Revolvers 26 28
Artificial flowers 26 28
Animal or human blood vaccines 6 5
Power driven water pumps 12.5 12
Padlocks, locks 18.5 18
Helmets 18.5 18
Fertilizers 18.5 12
Tractors 18.5 12
Sewing/knitting needles 18.5 12
Agricultural implements 12.5 0
Firewood 12.5 0
Geometry boxes 18.5 5
Solar panels 5
Packed food items 5
Beedis 28
Tendu leaves 18
Natural yarn 5
Man made yarn 18

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The GST Bills was passed in Rajyasabha and Loksabha and all states agree to roll out GST by July 2017

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