With the introduction of GST rates of fruits and vegetables, it is evident that to enable better flow of such supply chain systems, the fresh fruits and vegetables have been exempted with further processed, frozen fruits and vegetables taxed.The HSN codes relevant are 0602, 0709, 0805, 0810, etc.Items classified as nil rated under GSTThe following have been exempted under GSTFresh or chilled vegetables, roots and tubers like potatoes, tomatoes, onion, garlic, cabbage, cauliflower, carrot, beetroots, etc. have been exempted from GST.Fresh fruits like coconut, apples, cherries, peaches, bananas, pineapples, guavas, mangoes, citrus fruits such as oranges, mandarins, grapefruit etc. have been exempted from GST.Fresh nuts such as almonds, hazelnuts or filberts, walnuts, chestnuts, pistachios, macadamia nuts, kola nuts, and areca nuts.Frozen vegetables and fruits whether uncooked or cooked by boiling in water or added sugar or sweeting matter. Provisionally preserved vegetables, fruits and nuts but unsuitable for immediate consumption in that condition. Dried vegetables, and dried tamarind.Fresh and/or chilled fruits and vegetables have been exempted from tax under GST which is in line with the erstwhile VAT laws levied in different states. Hence, fresh unprocessed goods purchased directly from agriculturist or dealer or retailer will be exempt.Items taxed at 5%Jari booti and dry flowers like herbs, dry plants, bark and roots.Other frozen or dried vegetables.Dried areca nuts, whether shelled or peeled.Items taxed at 12%Dry fruits fresh or dried, shelled or peeled.Fruits and vegetable juices.Dry fruits have been taxed at a rate of 12 % which was earlier taxed at a rate of 5% leading to higher prices for dry fruits purchases.Items taxed at 18%Fruits, vegetables, nuts and other plants preserved by vinegar or acetic acid or sugar.Tomatoes, mushrooms or other vegetables preserved by other means.Fruit jam, jellies, pastes or nut puree.Here goods taxed at a rate of 18% which were earlier taxed under various VAT Acts at a rate of 5%, this again shows a price hike for end user consumers.To summarise the GST rates levied on fruits and vegetables on some conditions, fresh and unprocessed fruits and vegetables have been exempted which is a positive impact of GST for agricultural industry.However higher rates of 12% and 18% have been introduced for dry fruits and preparation from fruits and vegetables which were taxed at a rate of 5% earlier leading to a negative impact on FMCG Companies. The overall GST rate impacts majorly the end consumers as the goods which were earlier taxed at a rate of 5% will now be taxed at 12% or 18% leading to a price increase and consumption decrease.Visit our related article on ‘GST Rates’ to know more about the GST rates levied on various other items..

The Indian Railways is the fourth largest railway network and the eighth largest employer in the world. Thousands use the railways to travel every day; whether for short commutes to work or longer journeys between cities – since the time the first tracks were laid by the British connecting Bombay to Thane. As per 2021 data, around 22,593 trains are operating with a daily passenger count of 24 million passengers and 203.88 million tonnes of freight. Under Pre-GST RegimeService tax was applicable on the transport of goods & passengers before June 2017. The railways also enjoyed a 70% abatement which means only 30% of the value was taxable under service tax. Thus, the effective rate was =30% of 15% = 4.5% of the total fare.ParticularsUnder STUnder GSTTicket price10001000Service tax 4.5%45--GST@5%--50Total payment10451050GST has not been exceptionally beneficial to passengers who are end consumers as the effective service rate which was 4.5% increased to 5% in GST.

Recently, the GST Council announced the rates of Goods and Services Tax applicable on the supply of various goods and services. The GST rates are distributed across different rate bands of 5%, 12%, 18% and 28%. One such service which is extensively used and is one of the booming sectors of the Indian economy is civil aviation.Over the last few years, the civil aviation industry has witnessed exponential growth under the VAT and Service Tax regime. How will the shift to GST affect growth of the burgeoning civil aviation sector and what will be the effect of the GST on air fares? Read on to know more.Previous Taxation vs. GST RegimeThe Services Tax was applicable on all bookings made whether it is economy class or the business class.

India is the second largest producer of iron and steel in the world. The availability of raw materials locally like iron ore and coal and the low cost of labour have contributed to India’s dominance in this sector. Iron and steel are primary requirements of the construction industry and are commonly used in the manufacturing of machine parts. We will do a comparison of the tax rates charged under the previous tax laws on iron and steel and the rates under GST.Current tax laws on iron and steelThere were two different kinds of taxes that were levied under pre-GST laws on the manufacture of iron and steel (in any form) before reaching the end consumer. Excise duty was charged at the rate of 12.5% and the VAT rate was around 5%, taking the total taxes imposed to about 17.5%.

Hospitality and tourism industry in India is expected to rise from Rs.15.24 lakh crore (US$ 234.03 billion) in 2017 to Rs.32.05 lakh crore (US$ 492.21 billion) by 2028. Implementation of GST has helped the sector by reducing costs for customers, harmonising taxes, and reducing business transaction costs, but has its own set of challenges. In this article, we will look at the effects of the GST on the hospitality and tourism industry. Hospitality and Tourism under Pre-GSTThe hospitality industry, like every other sector in the Indian economy, was liable to pay multiple taxes (VAT, luxury tax, and service tax) under the previous VAT regime. A hotel where the room tariff exceeded Rs.1,000, was liable for service tax at 15%. An abatement of 40% was allowed on the tariff value, thus bringing the effective rate of service tax down to 9%. The Value Added Tax (ranging between 12% to 14.5%) and luxury tax, would apply on top of this. However, for restaurants, there was 60% abatement which meant that the service tax was charged at an effective rate of 6% on the F&B bills, apart from VAT (12% to 14.5%).

Transportation is a vital part of the economy as any problem in transportation disrupts the entire business channel. This is why any petrol price change has a far-reaching effect in disruption of business. We have covered articles on transport by rail & air. In this article, we will discuss the goods transportation and GTA (Goods Transport Agency) and the provisions of GST applicable on them.Latest updates50th GST Council meeting   In the 50th GST Council meeting held on 11th July 2023, the Council provided a relaxation for Goods Transport Agencies (GTAs) wishing to pay GST on a forward charge basis. GTAs will not be required to file a declaration for paying GST under forward charge every year.

Gold navigates a complex tax landscape in India despite it holds significance not just around the time of Dhanteras. If you're in the business of selling gold ornaments or gold biscuits, you would understand that impact is not just pricing but also the way gold is crafted, sold, and imported. Moreover, you could be an individual looking to purchase gold, but lack clarity on the taxes charged. We have curated this article on taxation - GST on gold in various forms, for you'll. GST subsumed VAT, service tax, excise duty and several other indirect taxes charged on domestic transactions. Moreover, Tax on the making charges on gold jewellery was introduced under GST.

GST on shipping charges depends on how the freight has been charged. The Goods and Services Tax (GST) is the biggest tax reform that India has seen. It has changed how goods and services are taxed in the country. This article gives a complete overview of taxation of shipping charges under GST.What are shipping charges? Shipping charges are applicable when goods are shipped (transported or delivered) to a buyer or an end-user. The seller adds this charge to the bill (to be borne/paid by the buyer).

Are you wondering if you must charge and collect Goods and Services Tax (GST) on the rent received by you? The treatment of GST differs between residential and commercial renting. On the other hand, if you run a business, then rent payment is one of those prominent expenses and you may want to know your eligibility for claiming Input Tax Credit (ITC) on GST paid on the rental expense. Let’s understand all these in detail.Latest Updates on ITC3rd October 2024The Supreme Court clarifies GST input tax credit can be claimed on construction for rental services for commercial purpose. The apex Court ruled that if a building’s construction is essential for providing services like leasing or renting for commercial activity, it could fall under the ‘plant’ exception to Section 17(5)(d) of the CGST Act. Section 17(5)(d) of the CGST Act prohibits ITC claims on construction materials used in construction of immovable property except for plant and machinery.Tax on Rental Income in the Pre-GST eraDuring the pre-GST era, the landlord had to obtain a service tax registration if their total taxable services (including the rental income from all properties) exceed Rs.10 lakh per year.

Educational institutions provide the noble service of educating children for a better future. It's vital to understand the impact of GST on the services offered by educational or academic institutions—whether a school, college, or professional training institute—because it will directly affect your pockets. The article includes detailed information on this aspect. Stay with us.What's in the article for you-What were pre-GST laws laid down for Educational InstitutionsWhat is an Educational Institution under GST?Are Educational Services considered as Supply and its TaxabilityGST Exemptions Available to Educational Institutions Classification and GST Rates on Education Services Should educational institutions be registered under GST?Applicability of GST on Higher Educational InstitutionsApplicability of GST on Training programs, camps, yoga programs and other eventsWhether books or stationery distributed to students covered under GST?Chargeability of GST on Private Coaching centres and Distance EducationGST Impact on the Education SectorFAQsLatest updates9th September 2024In the 54th GST Council meeting, the Council clarified the following Also, university affiliation services to their constituent colleges are not covered within the ambit of exemptions provided to educational institutions in notification No. 12/2017-CT(R) dated 28.06.2017 and hence are taxable at 18%.What were pre-GST laws laid down for educational institutionsServices provided by an educational institution to its students or faculty or staff were exempt.