GST Rates in India

Introduction

On 1st July 2017 history was created when GST becomes reality. This came out as revolutionary tax reform that transformed entire indirect tax structure, Now there is a huge buzz about GST rates among the people at large like trader, merchant, dealer, consultant, officials, businessman, and any services recipient and service provider.

This new concept of GST is a single tax system for goods as well as for services, which we would be levied on ‘Supply’ of goods and services.

Further, in this article, we shall learn GST rates structure for goods and services which had been notified on the same date.

In this article we will learn GST rates for Goods as well as for Services and also we shall learn certain categories of items where GST is not applicable.

Schedule for GST rates in India

There is total VII schedule for GST, in which different rate structure for different goods or services has been notified.

• Schedule I: List of Goods at Nil Rate
• Schedule II: List of Goods at 0.25% Rate
• Schedule II: List of Goods at 3% Rate
• Schedule IV: List of Goods at 5% Rate
• Schedule V: List of Goods at 12% Rate
• Schedule VI: List of Goods at 18% Rate
• Schedule VII: List of Goods at 28% Rate

 

Tax slab of GST rates 2017: Council on 19th may 2017 finalized four GST rates in India which categorized as 5%, 12%, 18% & 28% and 0% for certain product which subsumed services tax, central excise tax, Surcharge & Fees, VAT, Taxes on Lottery, Luxury Tax, Entry Tax, Entertainment Tax.

Following list which describes the rates of GST applicable on different items

Tax rates	Items
0%-There will be no tax levied on items       5%	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. fish fillet, tea, spices,  apparel below Rs. 1000 packaged food items  footwear skimmed milk powder  branded frozen vegetables, coffee pizza bread, Rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, Cashew nut, Cashew nut in shell, Raisin, Ice, and snow  Bio gas, Insulin, Agarbatti, Kites, Postage or revenue stamps, stamp-post marks, coal, medicine
12%	Frozen branded food Butter, ghee, cheese, dry fruit Ketchup, Sauces, fruit juice Umbrella, sewing machine Exercise books and note books Spoons, forks, ladles, skimmers,  cake servers, fish knives, tongs,  Spectacles, Playing cards, chess board, carom board Table and kitchenware, Textile caps, sprinklers, ornamental articles Batters, including idli /dosa batter metal, animal carving material.
18%	Flavored refined sugar, pasta, cornflakes, pastries cakes,  preserved vegetables, jams, sauces, soups, ice cream, tissues,  instant food mixes, mineral water envelopes, tampons, note books,
28%	Bidis, 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, tiles, water heater, dishwasher  sunscreen, wallpaper, ceramic weighing machine, ATM, vending machines washing machine, hair clippers, vacuum cleaner, shavers,  motorcycles, aircraft automobiles, for personal use.

  

GST Rates – For Services

Certain services rendered by central government, state government, union territory, local authority are kept outside the ambit of GST, whereas standard rates for GST are almost similar to the tax rates which are levied on goods or products. Hence, we set few services which liable to different rates of tax structure

 

Exempted services are rated at 0%

Hotels and lodges with tariff below Rs 1,000, service have been exempted under GST. Rough precious and semi-precious stones will attract GST rate of 0.25 per cent.

 

GST rates for services taxed at 5%

GST rate of 5% will be applicable on outsourcing of manufacturing or job work in textiles and the gems and jewelers sector. Transport services (Railways, air transport, bleaching and cleaning of human hair, small restaurants.

 

GST rates for services taxed at 12%

State-run lotteries, Non-AC hotels, business class air ticket, fertilizers, Work Contracts will fall under 12 per cent GST tax slab

 

GST rates for services taxed at 18%

AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST, Room tariffs between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels

 

GST rates for services taxed at 28%

Private-run lotteries authorized by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting, the cinema will be taxed at 28 per cent.

 

GST Rates on Exports

Export means sending goods or rendering services produced in one country to another country the seller of such goods and services are called exporter, and the receiver of goods and services outside India are called importer, Since end consumer who is receiving goods and services would be not in India and hence GST would not be applicable to them     because GST is consumption based tax.

Therefore DGFT, in order to promote exports and accelerate foreign revenue, has introduced two ways of export of the goods as well as services through which one can easily go for export without bearing the burden of the tax.

 

• Export with payment of GST: Under this type of system, it means first pay the duty and then claim refund under GST. To claim refund you need to file the GST RFD form just to claim refund.
• Export without payment of GST: In this category, you need to file LUT or bond with tax department to ensure you will comply with all the export related formalities.

 

GST Rates on Imports under GST

Import under GST regime means bringing of goods or services from abroad into territory of India which would be treated as deemed inter-state supply of goods or services, and would, therefore, be liable to attract IGST in addition to customs duty like Basic customs duty and GST compensation cess on imported goods

 

Conclusion

 

We have made an attempt to share basic GST rates structure and also categorize few items rate wise. Although there are a long list and n number of a provision related to the tax structure.

If you wish to know more and want to keep abreast with the recent updates feel free to contact us at info@hubco.in and get a free consultation.