GST Rates in 2023 – List of Goods and Service Tax Rates, Slab & Revision
GST rates list is crucial for every Indian business and consumer to know. When the GST Council revises GST rates, it hits respective industries, trade bodies and end consumers, impacting the economy. Everyone tends to evaluate their position as a result of this change. Our HSN cum GST rates finder helps you identify the accurate and latest GST rate applicable for the product/service.
In this article, learn the meaning of GST rate and catch all the latest updates on GST rates in India 2023.
Meaning of GST Rates
GST rates refer to the percentage rates of tax imposed on the sale of goods or services under the CGST, SGST and IGST Acts. A business registered under the GST law must issue invoices with GST amounts charged on the value of supply.
The GST rates in CGST and SGST (For intra-state transactions) are approximately the same. Whereas, the GST rate in the case of IGST
(For inter-state transactions) is approximately the sum total of CGST and SGST rate.
Types of GST Rates and GST Rate structure in India
The primary GST slabs for any regular taxpayers are presently pegged at 0% (nil-rated), 5%, 12%, 18% & 28%. There are a few lesser-used GST rates such as 3% and 0.25%.
Also, the composition taxable persons must pay GST at lower or nominal rates such as 1.5% or 5% or 6% on their turnover. There is a concept of TDS and TCS under GST as well, whose rates are 2% and 1% respectively.
These are the total GST rate of IGST for interstate supply or the addition of both CGST and SGST for intrastate supply. The GST rates shall be multiplied by the assessable value of the supply to arrive at the GST amounts in a tax invoice.
Further, the GST law levies cess in addition to the above GST rates on the sale of some items such as cigarettes, tobacco, aerated water, petrol, and motor vehicles, rates widely varying from 1% to 204%.
The GST rate structure for some of the commonly-used consumable products is given in the below table. For more items, type in the item you wish to know the GST rate of by visiting our HSN code & GST rates finder.
| Tax Rates | Products | |
|---|---|---|
| 0% | Milk | Kajal |
| 0% | Eggs | Educations Services |
| 0% | Curd | Health Services |
| 0% | Lassi | Children’s Drawing & Colouring Books |
| 0% | Unpacked Foodgrains | Unbranded Atta |
| 0% | Unpacked Paneer | Unbranded Maida |
| 0% | Gur | Besan |
| 0% | Unbranded Natural Honey | Prasad |
| 0% | Fresh Vegetables | Palmyra Jaggery |
| 0% | Salt | Phool Bhari Jhadoo |
| 5% | Sugar | Packed Paneer |
| 5% | Tea | Coal |
| 5% | Edible Oils | Raisin |
| 5% | Domestic LPG | Roasted Coffee Beans |
| 5% | PDS Kerosene | Skimmed Milk Powder |
| 5% | Cashew Nuts | Footwear (< Rs.500) |
| 5% | Milk Food for Babies | Apparels (< Rs.1000) |
| 5% | Fabric | Coir Mats, Matting & Floor Covering |
| 5% | Spices | Agarbatti |
| 5% | Coal | Mishti/Mithai (Indian Sweets) |
| 5% | Life-saving drugs | Coffee (except instant) |
| 12% | Butter | Computers |
| 12% | Ghee | Processed food |
| 12% | Almonds | Mobiles |
| 12% | Fruit Juice | Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly |
| 12% | Packed Coconut Water | Umbrella |
| 18% | Hair Oil | Capital goods |
| 18% | Toothpaste | Industrial Intermediaries |
| 18% | Soap | Ice-cream |
| 18% | Pasta | Toiletries |
| 18% | Corn Flakes | Computers |
| 18% | Soups | Printers |
| 28% | Small cars (+1% or 3% cess) | High-end motorcycles (+15% cess) |
| 28% | Consumer durables such as AC and fridge | Beedis are NOT included here |
| 28% | Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess) |
|
What are the GST rates in India 2023?
The year 2023 has begun with key changes in GST rates passed during the last week of December 2022. During its meetings, the GST Council also revised the GST rates of some key items across 2022. Some were done to correct the prevailing inverted tax structure, whereas a few were revised for revenue augmentation. The following sections cover the summarised details of changes to GST rates in India with the new GST rates 2023.
GST Rate Changes at 48th GST Council meeting
At the 48th GST Council meeting held on 17th December 2022, the following changes were recommended by the GST Council and notified by CBIC to apply from 1st January 2023-
| Item description | Before amendment | After amendment |
| Husk of pulses, along with chilka and concentrates, chuni or churi, and khanda used as cattle feed* | 5% | nil |
| Ethyl alcohol sold to refineries to blend it with the motor spirit or petrol | 18% | 5% |
| Sale of Mentha arvensis, similar to Mentha oil | No RCM | Under RCM |
*Intervening period beginning from 3rd August 2022, as per the Circular clarifying levy, will be regularised.
Clarifications on tax rates for the supply of goods and services are as follows-
- Rab, also called rab-salawat, is classified under HSN code 1702, and a GST rate of 18% gets charged.
- GST at 18% is charged on “fryums” made using extrusion, specifically covered under HSN code 19059030.
- Cess on SUV at 22% shall apply if 4 criteria are satisfied-
- Popularly known as SUV,
- The engine capacity of more than 1500 cc,
- Length more than 4000 mm and
- Ground clearance equal to or more than 170 mm
- 5% GST is levied on imported equipment or goods categorised in the concessional 5% GST rate category for petroleum operations, and 12% GST applies if the general GST rate is higher than 12%.
- No GST is levied if the residential dwelling is rented to a GST-registered person in their personal capacity for their own use/account as a residence and not for business.
- Incentives given to banks by the Central Government as a subsidy under the promotion of RuPay Debit Cards and low-value BHIM-UPI transaction schemes do not attract GST.
GST Rate Changes from 18th July 2022
The government issued nine Central Tax (Rate) notifications number 03/2022 to 11/2022 on 13th July 2022. These GST rate changes will apply from 18th July 2022. Further, exemptions were withdrawn on a few daily essentials. The government notified revised rates for items that faced an inverted tax structure. Also, the taxman notified changes in the applicability of the reverse charge mechanism for certain services. Take a glimpse of the below GST rate chart revised by the notification.
GST Rate revision in 47th GST Council Meeting
The 47th GST council meeting was held on 28th and 29th June 2022. The following decisions were taken regarding GST rates, including pruning of the exemption list and correction of the inverted tax structure.
GST rate hikes and cuts
| Description of goods or services | Old Rate | New Rate |
|---|---|---|
| What's costlier | ||
| Cut and Polished diamonds | 0.25% | 1.50% |
| Tetra Pack (Aseptic Packaging Paper) | 12% | 18% |
| Tar (From coal, or coal gasification plants, or producer gas plants and coke oven plants) | 5%/18% | 18% |
| What's cheaper | ||
| Import of tablets called Diethylcarbamazine (DEC) free of cost for National Filariasis Elimination Programme (IGST) | 5% | Nil |
| Import of particular defence items by private businesses or suppliers for end-consumption of Defence (IGST) | Applicable rates | Nil |
| Ostomy Appliances | 12% | 5% |
| Orthopedic appliances such as intraocular lens, artificial parts of the body, splints and other fracture appliances, other appliances which are worn or carried, or body implants, to compensate for a defect or disability | 12% | 5% |
| Transport of goods and passengers by ropeways (with ITC of services) | 18% | 5% |
| Renting of truck or goods carriage including the fuel cost | 18% | 12% |
| *The rates will come into effect from 18th July 2022 subject to CBIC notification | ||
Pruning of GST exemptions
| Description of goods or services | Old Rate | New Rate |
|---|---|---|
| Earlier fully exempted, now withdrawn | ||
| Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printed | Nil | 12% |
| Cheques, lose or in book form | Nil | 18% |
| Parts of goods of heading 8801 | Nil | 18% |
| Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy class | Nil | Condition added |
| Transportation by rail or a vessel of railway equipment and material, storage or warehousing of commodities attracting tax such as copra, nuts, spices, jaggery, cotton, etc, fumigation in a warehouse of agri produce, services by RBI, IRDA, SEBI, FSSAI, and GSTN, renting of residential dwelling to GST-registered businesses, and services by the cord blood banks for preserving stem cells | Nil | Applicable rate |
| Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITC | Nil | 5% |
| Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPs | Nil | 12% |
| Hotel accommodation priced up to Rs.1,000 per day | Nil | 12% |
| Training or coaching in recreational activities on arts or culture, or sports other than by individuals | Nil | Applicable rate |
| Earlier partially exempted, now withdrawn | ||
| Petroleum/ Coal bed methane | 5% | 12% |
| e-Waste | 5% | 18% |
| Scientific and technical instruments to public funded research institutes | 5% | Applicable rate |
| *The rates will come into effect from 18th July 2022 subject to CBIC notification | ||
Correction of Inverted tax structure
| Description of goods or services | Old Rate | New Rate |
|---|---|---|
| Solar water heaters and systems | 5% | 12% |
| Prepared or finished leather or chamois leather or composition leathers | 5% | 12% |
| Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing | 5% | 12% |
| Earthwork works contracts and sub-contracts to the Central and state governments, Union Territories and local authorities | 5% | 12% |
| Pawan Chakki being air-based atta chakki, wet grinder, cleaning, sorting or grading machines for seeds and grain pulses, and milling machines or cereal making machines, etc; | 5% | 18% |
| Ink for drawing, printing, and writing | 12% | 18% |
| Knives with paper knives, cutting blades, pencil sharpeners and its blades, skimmers, cake-servers, spoons, forks, ladles, etc | 12% | 18% |
| Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water | 12% | 18% |
| Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce | 12% | 18% |
| Lights and fixture, LED lamps, their metal printed circuits board | 12% | 18% |
| Marking out and drawing instruments | 12% | 18% |
| Services by foreman to chit fund | 12% | 18% |
| Works contract for railways, metro, roads, bridges, effluent treatment plant, crematorium, etc. | 12% | 18% |
| Works contract and sub-contract to the Central and state governments, local authorities for canals, dams, pipelines, plants for water supply, historical monuments, educational institutions, hospitals, etc | 12% | 18% |
| Refund of accumulated ITC for edible oils and coal is disallowed. | ||
| *The rates will come into effect from 18th July 2022 subject to CBIC notification | ||
GST Rate changes from 1st January 2022
(1) New HSN Codes from 2022
Three notifications were issued on 28th December 2021 by the CBIC to align HSN codes with HS-2022 with effect from 1st January 2022. Central Tax (Rate) notification no. 18/2021, Central Tax (Rate) notification no. 19/2021 and Central Tax (Rate) notification no. 20/2021
(2) GST rate changes to correct the inverted tax structure:
GST increased to 12% from 5% for textiles with HSN codes 51, 52, 53, 54, 55, 56, 58, 60, 63 and 64 such as woven as well as knitted fabrics, knitting, saree falls, embroidery works, curtains bed linen and home furnishings. It also includes dyeing services.
The same increase applies to footwear with HSN code 64 valued at or below Rs.1,000 per pair.
Changes were notified vide the Central Tax (Rate) notification no. 14/2021 and 15/2021 dated 18th November 2021, as recommended at the 45th GST Council meeting.
(3) e-Commerce operators to pay GST under Section 9(5) for passenger transport and restaurant services
e-Commerce operators will become liable to pay GST under Section 9(5) for the cab services, carrier services, etc provided for transportation of passengers since they are removed from the list of exemptions. This is notified by the Central Tax (Rate) notification no. 16/2021 dated 18th November 2021.
Further, the transport of passenger service included under Section 9(5) of the CGST Act will also include omnibus and other motor vehicles. Further, cloud kitchens e-commerce operators providing the supply of food will also be included under Section 9(5) and subject to GST. However, it exempts food supply services from premises having hotel accommodation where the declared tariff per unit is at or below Rs.7,500. These two are notified vide the Central Tax (Rate) notification no. 17/2021 dated 18th November 2021.
(4) Other GST rate changes
a) Exempts ‘carriages for disabled persons’ under HSN code 8713 earlier taxed at 12% by the Central Tax (Rate) notification no. 13/2021 dated 27th October 2021. Further, the same notification removed ‘in respect of Information Technology software’ from entry 452P earlier charged 18% GST.
b) Central Tax (Rate) notification no. 15/2021 dated 18th November 2021 removed ‘Governmental Authority or a Government Entity’ from serial 3 being construction services.
c) Key changes are carried out to the description of goods chargeable to GST vide the Central Tax (Rate) notification no. 18/2021 dated 28th December 2021.
d) Key changes are carried out to the description of goods exempt from GST vide the Central Tax (Rate) notification no. 19/2021 dated 28th December 2021.
e) A concessional GST rate of 12% applies to HSN code chapter 4414 instead of earlier 44140000 covering wooden frames having paintings, photos,
mirrors, etc. Also, a concessional GST rate of 12% applies to HSN code 7419 80 instead of earlier 741999 covering art ware related to brass, copper or its alloys, electroplated with nickel/silver.
GST Rate revision in 45th GST Council Meeting
The 45th GST council meeting was held on 17th September 2021 and the following decisions had been taken regarding GST rates.
These have been notified vide Central Tax (Rate) notification nos. 6, 7, 8, 9, 10 and 11/2021 dated 30th September to apply with effect from 1st October 2021.
Central Tax (Rate) notification no. 12/2021 dated 30th September 2021 grants extension to exempt the COVID-19 treating medicines up to 31st December 2021.
GST Rates reduced on Goods & Services:
| Item | Before | After |
|---|---|---|
| Import of expensive life-saving medicines such as Zolgensma, Viltepso or as recommended by a relevant government department for personal use | 12% | Nil |
| Waste unintentionally generated during the fish meal production, except for Fish Oil | Applicable rate | Nil from 1st July 2017 to 30th September 2019 |
| IGST on the goods sold at Indo-Bangladesh border haats | Applicable rate | Nil |
| Transport of goods by vessel and air from India to outside India extended up to 30th September 2022 | Nil | Nil |
| Granting of National Permit to goods carriages on a fee payment | 18% | Nil |
| Skill training programmes where the state/central government funds expenditure equal to or more than 75% | 18% | Nil |
| Services on AFC Women's Asia Cup to be held in 2022 | 18% | Nil |
| ‘Keytruda’ drug for the treatment of cancer | 12% | 5% |
| Biodiesel, sold to the oil marketing companies for blending it with diesel | 12% | 5% |
| Fortified Rice Kernels for the Integrated Child Development Services Scheme, etc | 18% | 5% |
| Retro fitment kits in vehicles for the disabled | Applicable rate | 5% |
*With effect from 1st October 2021 subject to the CBIC notification
GST Rates increased on Goods & Services:
| Item | Before | After |
|---|---|---|
| Polyurethanes and other plastics waste and scrap | 5% | 18% |
| Cartons, bags, boxes, packing containers made out of paper, etc | 12/18% | 18% |
| Papers such as cards, catalogue, printed material Under Chapter 49 | 12% | 18% |
| Licensing, broadcasting and showing original films, Radio Television programmes, sound recordings | 12% | 18% |
| Printing and reproduction of recorded media being the publisher’s content | 12% | 18% |
*With effect from 1st October 2021 subject to the CBIC notification
GST rate corrections for inverted tax structure:
| Item | Before | After |
|---|---|---|
| Specified Renewable Energy Devices and parts | 5% | 12% |
| Ores and metal concentrates | 5% | 18% |
| All kinds of pens | 12/18% | 18% |
| Railway parts, locomotives and goods in Chapter 86 | 12% | 18% |
*With effect from 1st October 2021 subject to the CBIC notification
GST Rate revision in 44th GST Council Meeting
The 44th GST council meeting was held on 12th June 2021 and the following decisions had been taken regarding GST rates effective up to 30th September 2021.
These were notified vide the Central Tax(Rate) notification no. 04/2021 and 05/2021 dated 14th June 2021.
Medicines required for COVID-19 & Black Fungus treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Tocilizumab | 5% | Nil |
| Amphotericin-B | 5% | Nil |
| Remedesivir | 12% | 5% |
| Anti-coagulants like Heparin | 12% | 5% |
| Any other drug (recommended by the Ministry of Health and Family Welfare (MoHFW) and the Dept. of Pharma (DoP) for Covid-19 treatment) | Existing rate | 5% |
Medical equipment required for COVID treatment:
| Items | Old rate | Proposed rate |
|---|---|---|
| Medical Grade Oxygen | 12% | 5% |
| Oxygen concentrators/ generators (which include personal imports) | 12% | 5% |
| Ventilators and ventilator masks/ cannula/ helmets | 12% | 5% |
| BiPaP machine | 12% | 5% |
| High flow nasal cannula device | 12% | 5% |
| Pulse oximeters | 12% | 5% |
COVID-19 testing kits and items utilised for the prevention of COVID-19:
| Items | Old rate | Proposed rate |
|---|---|---|
| Covid-19 testing kits | 12% | 5% |
| Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH | 12% | 5% |
| Hand sanitiser | 18% | 5% |
| Temperature checking equipment | 18% | 5% |
Others:
| Items | Old rate | Proposed rate |
|---|---|---|
| Gas/electric/other furnaces for crematorium, including their installation, etc | 18% | 5% |
| Ambulances | 28% | 12% |
GST Rate revision in 42nd GST council meeting
The 42nd GST council meeting was held on 5th October 2020 and the following decisions have been taken regarding GST rates.
- GST exemption provided to satellite launch services by ISRO, Antrix Corporation and New Space India Limite (NSIL) to encourage the space launching services in India.
- The non-alcohol based sanitisers will continue to be taxed at an 18% GST rate.
GST Rate revision in 39th GST council meeting
39th GST Council meeting was held on 14th March 2020, Saturday at New Delhi. Read all the highlights on 39th GST Council Meeting.
The following are the rate cuts announced at the 39th GST Council meeting:
|
Item |
Old Rate |
New Rate |
|
Mobile phones and specified parts |
12% |
18% |
|
Handmade matches |
5% |
12% |
|
Other than handmade matches |
18% |
12% |
|
Aircraft MRO (Maintenance, Repair, Overhaul) services |
18% |
5% (with full ITC) |
The rate changes are effective from 1 April 2020
GST Rate revision in 38th GST council meeting
38th GST Council meeting was held on 18th December 2019, Wednesday at New Delhi. Read all the highlights on 38th GST Council Meeting.
The following are the rate cuts announced at the 38th GST Council meeting:
| Item | Old Rate | New Rate |
|
Lotteries (State-owned) |
12% |
28% |
|
Lotteries (State-authorised) |
28% |
28% |
|
Woven and non-woven fabrics |
12% |
18% |
|
Sacks of Polythene and Polypropylene in nature |
12% |
18% |
GST rate changes will apply from 1st March 2020 for lottery and from 1 January 2020 for bags and sacks.
GST Rate revision in 37th GST council meeting
GST Council had its 37th meet held at Goa on Friday (20th September 2019). Read all the highlights on 37th GST Council Meeting.
The following are the rate cuts announced at the 37th GST Council meeting:
GST Rate Revision effective from 1st October 2019
| Item | Old Rate | New Rate |
| Plates and cups made of flowers, leaves and bark | 5% | Nil |
| Caffeinated Beverages | 18% | 28%+12% cess |
| Supplies of Railways wagons & coaches (without refund of accumulated ITC) | 5% | 12% |
| Outdoor Catering (without ITC) | 18% | 5% |
| Diamond Job work | 5% | 1.50% |
| Other Job work | 18% | 12% |
| Hotels (Room Tariff of Rs.7501 or above) | 28% | 18% |
| Hotels (Room Tariff from Rs 1,001 to Rs 7,500) | 18% | 12% |
| Woven/ Non-woven Polyethylene Packaging bags | 18% | 12% |
| Marine fuel | 18% | 5% |
| Almond Milk | 18% | |
| Slide fasteners | 18% | 12% |
| Wet grinders (consisting of stone as a grinder) | 12% | 5% |
| Dried Tamarind | 5% | Nil |
| Semi-precious stones- cut & polished | 3% | 0.25% |
| Specified goods for petroleum operation under HELP* | Applicable Rate | 5% |
*Hydrocarbon Exploration Licensing Policy
| Item | Old Rate | New Rate |
| Cess on Petrol Motor Vehicles (Capacity of 10-13 passengers) | 15% | 1% |
| Cess on Diesel Motor Vehicles (Capacity of 10-13 passengers) | 15% | 3% |
- Supplies to FIFA- specified persons for the Under-17 Women’s Football World Cup in India
- Supply to the Food and Agriculture Organisation (FAO) for specified projects in India
- Imports of certain defence goods not made indigenously (up to 2024)
- Supply of silver/platinum by specified agencies (Diamond India Ltd) for export
- Import of Silver or Platinum by specified agencies (Diamond India Ltd)
GST Rate revision in 36th GST council meeting
GST Council had its 36th meet via video conference on Saturday (27th July 2019). Read all the highlights on 36th GST Council Meeting..
The following are the rate cuts announced at the 36th GST Council meeting:
|
Items | Old rate | New rate |
|
Electric chargers |
18% |
5% |
|
Electric vehicles |
12% |
5% |
A full exemption is given to hiring of e-buses(seating capacity exceeds 12 passengers) by local authorities
Note: Will come into effect from 1 August 2019 after the CBIC notification
GST Rate revision in 33rd GST council meeting
The latest meeting-33rd GST Council meeting is rescheduled on 24th February 2019 from earlier date 20th February 2019.
It was chaired by Finance Minister Arun Jaitley. Real estate was in limelight.
This is the first one after the Interim Budget 2019.
The GST rates were slashed on the under-construction houses without ITC benefit; No changes to GST Rate on lottery or Cement.
GST Rate revision in 31st GST council meeting
31st GST Council meeting was held on 22nd December 2018. GST Rates for 23 Goods and 3 Services has been revised*.
Here is a summarised version of the list of rate cuts on both Goods and Services:
| SL.no | List of Goods/Services | Changes in Tax Rate |
| 1 | Vegetables provisionally preserved but unsuitable for immediate consumption | 5% to Nil |
| 2 | Vegetables cooked/uncooked via steamed, frozen or boiled (branded) | 5% to Nil |
| 3 | Music Books | 12% to Nil |
| 4 | Parts for manufacturing renewable energy devices falling under chapter 84, 85 or 94 of Tariff | 5% |
| 5 | Natural cork | 12% to 5% |
| 6 | Fly ash blocks | 12% to 5% |
| 7 | Walking sticks | 12% to 5% |
| 8 | Marble rubble | 18% to 5% |
| 9 | Agglomerated cork | 18% to 12% |
| 10 | Cork roughly squared or debugged | 18% to 12% |
| 11 | Articles of Natural cork | 18% to 12% |
| 12 | Movie Tickets < or = Rs 100 | 18% to 12% |
| 13 | Premium on Third party insurance on Vehicles | 18% to 12% |
| 14 | Accessories for Handicapped Mobility Vehicles | 28% to 5% |
| 15 | Power banks | 28% to 18% |
| 16 | 28% to 18% | |
| 17 | Video game consoles, equipments used for Billiards and Snooker and other sport related items of HSN code 9504 | 28% to 18% |
| 18 | Retreated & used pneumatic Rubber Tyres | 28% to 18% |
| 19 | Colour Television Sets & monitors up to “32 Inches” | 28% to 18% |
| 20 | Digital & Video Camera recorders | 28% to 18% |
| 21 | Pulleys, transmission shafts, cranks and gear boxes under HSN 8483 | 28% to 18% |
| 22 | Tax rate on Air travel of pilgrims reduced* | 28% to 18% |
*For travel by non-scheduled/chartered operations for religious pilgrimage which are facilitated by GoI under bi-lateral agreements. Others: -GST on the composite supply of goods attracting 5% GST rate where it is supplied along with the supply of construction services and other goods for solar power plant, is now levied as follows:
- 70% of value is considered as supply of goods and taxed at 5% GST.
- Remaining 30% of the EPC contract value is supply of service and attracts standard tax rate for service.
-Rate of 5%/18% to be applied based on transaction value of footwear. -Uniform GST rate of 12% on Flexible Intermediate Bulk Container (FIBC) from existing 5%/12% (depending on the value).
Goods recommended for exemption
- Supply of gold by Nominated Agencies to exporters of article of gold Jewellery.
- Proceeds received by Government from auction of gifts received by President, Prime Minister, Governor or Chief Minister of a State and public servants, the proceeds of which is used for public or charitable cause.
- Vehicles imported for temporary purposes under the Customs Convention on the Temporary importation of Private Road Vehicles (carnet de passages-en-douane) will be exempt from IGST and Compensation cess.
Services recommended for exemption
- Services supplied by banks to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Services supplied by rehabilitation professionals recognised under Rehabilitation Council of India Act, 1992 at hospitals, schools or rehabilitation centres established by Government or charitable institute registered under Section 12AA of The Income tax Act,1961.
- Loan guarantee services provided by Government to its undertakings and PSUs for bank loans.
GST Rate revision in 28th GST council meeting
28th GST Council Meeting was held on 21st July 2018. GST Rates for 45 Goods and 2 Services has been revised*.
Recent GST Rate Changes on Goods
| S.NO | Items | New Rate | Old rate |
| 1 | Rakhi (other than that of precious or semi-precious material ) | Nil | 18% |
| 2 | Sanitary Napkins | Nil | 12% |
| 3 | Circulation and commemorative coins | Nil | 5% |
| 4 | Raw material for broom | Nil | 12% |
| 5 | Stone/Marble/Wood Deities | Nil | 5% |
| 6 | Sal leaves and its products | Nil | 18% |
| 7 | Khali dona | Nil | 18% |
| 8 | Coir pith Compost | Nil | 5% |
| 9 | Chenille fabrics and other fabrcis under 5801 | 5% | 12% |
| 10 | Handloom dari | 5% | 12% |
| 11 | Phosphoric Acid (fertilizer grade only) | 5% | 12% |
| 12 | Handmade Carpets, Textile Floor, Coverings | 5% | 12% |
| 13 | Knitted cap/topi having retails sale value exceeding Rs. 1000 | 5% | 12% |
| 14 | Kota Stones and Simliar Stones (other than polished) | 5% | 18% |
| 15 | Ethanol for sale to oil marketing companies for blending with fuel | 5% | 18% |
| 16 | Solid Bio fuel pellets | 5% | 18% |
| 17 | Marine Engine | 5% | 28% |
| 18 | Bamboo Flooring | 12% | 18% |
| 19 | Hand Operated Rubber Roller | 12% | 18% |
| 20 | Brass Kerosene Pressure Stove | 12% | 18% |
| 21 | Zip and Slide Fastener | 12% | 18% |
| 22 | Handicrafts (Excluding handmade) | 12% | 18% |
| 23 | Handbags including pouches and purses; jewellery box | 12% | 18% |
| 24 | Fuel Cell vehicle | 12% | 28% |
| 25 | Televisions upto 68 cm | 18% | 28% |
| 26 | Glaziers’ putty, grafting putty, resin cements | 18% | 28% |
| 27 | Refrigerators, freezers, water cooler, milk coolers, ice cream freezer | 18% | 28% |
| 28 | Washing Machines | 18% | 28% |
| 29 | Food Grinders & mixer | 18% | 28% |
| 30 | Vacuum Cleaners | 18% | 28% |
| 31 | Paints and Varnishes (including enamels and lacquers) | 18% | 28% |
| 32 | Shavers, Hair Clippers | 18% | 28% |
| 33 | Hair Cleaners | 18% | 28% |
| 34 | Storage water heaters | 18% | 28% |
| 35 | Immersion heaters | 18% | 28% |
| 36 | Hair Dryers, Hand Dryers | 18% | 28% |
| 37 | Electric Smoothing irons | 18% | 28% |
| 38 | Scent Sprays | 18% | 28% |
| 39 | Toilet Sprays | 18% | 28% |
| 40 | Pads for application of cosmetics or toilet preparations | 18% | 28% |
| 41 | Lithium-ion batteries | 18% | 28% |
| 42 | Powder Puffs | 18% | 28% |
| 43 | Special purpose motor vehicles | 18% | 28% |
| 44 | Work Trucks (Self-propelled, not fitted with lifting or handling equipment) | 18% | 28% |
| 45 | Trailers & Semi trailers | 18% | 28% |
List of Goods Exempt
| Fortified Milk | exempt | 5% |
Recent GST Rate Changes on Services
SERVICES |
||
|---|---|---|
| Rate Change | ||
Services | New GST Rates | Old GST Rates |
| Supply of e-books | 5% | 18% |
| Supply of Multimodal Transportation | 12% | Nil |
| List of Services Exempt |
| Senior Citizens |
| 1. Sevices provided by Coal Mines provident fund organisation to the PF subscribers |
| 2. Services provided by Old age home run by state government / central government to the citizens aged more than 60 years up to Rs. 25000 |
| GST exempted on the administrative fee collected by National Pension System Trust |
| 4. Services provided by an unincorporated body or non profit entity registered under any law to own members up to Rs. 1000 per year of membership fees. |
|
Agriculture/ Farmers |
| 1. Services by way of artificial insemination of livestock (other than horses) |
| 2. Services provided by FSSAI to food businesses. |
| 3. Services provided by way of warehousing minor forest produce |
| 4. Services provided by the installation and commissioning by DISCOMS for extending electricity distribution network for agricultural use. |
|
Banking/Finance/ Insurance |
| 1. Reinsurance services provided to insurance scheme such as Pradhan Mantri Rashtriya Swasthya Suraksha Mission |
|
Government |
| 1. Guarantees given by central/state government to their undertakings/PSUs. |
| 2. Services provided by government to ERCC by assigning the right to collect royalty to mining lease holders. |
|
Miscellaneous |
| 1. Import of services by Foreign diplomatic missions/UN other international organizations |
| 2. GST rate slabs will apply on the actual rate for hotel services instead of declared tariff. |
GST Rate revision in 25th GST council meeting
25th GST Council meeting on 18th January 2018
GST council has made the much-awaited announcements around tax rates on various categories of goods on 18th January 2018 at Vigyan Bhavan, Delhi. There has been hype around these rates for a while and now these GST rates are finally in the public domain!
GST Rates for 29 Goods and 53 Services were revised*. Click here to read all updates of the meet.
- Goods taxed at 0%- Vibhuti, De-oiled rice bran and parts used to manufacture hearing aids
- Reduced from 28% to 18%- Old and used motor vehicles [medium and large cars and SUVs] without ITC, Public transport Buses that run on Biofuel, Services of joy rides, Go-karting
- Reduced from 28% to 12% –Old and used motor vehicles [other than medium and large cars and SUVs] without ITC
- Reduced from 18% to 12% –Drinking water packed in 20 litres bottles, Drip irrigation system, sprinklers, Biodiesel, Sugar boiled Confectionery, Services of construction of metro / mono-rail, mining of petrol crude
- Reduced from 18% to 5% –LPG for household use, Tamarind Kernel Powder, Mehendi paste in cones, Raw materials and Consumables needed for Launch vehicles/satellites, Services of Tailoring
- Reduced from 12% to 5%-Velvet fabric( Without Refund of ITC), Articles of straw, of esparto or of other plaiting materials
- Reduced from 3% to 0.25%-Diamonds and precious stones
- Rate increased from 0% to 5%-Rice bran (other than de-oiled rice bran)
- Rate increased from 12% to 18%-Cigarette filter rods
- Services included in the Exemption List:
- Providing information under RTI Act, 2005
- Legal services provided to Government
- Admission to, or conduct of examination provided to all educational institutions including any service of conducting entrance examinations on collection of entrance feesAdmission to, or conduct of examination provided to all educational institutions including any service of conducting entrance examinations on collection of entrance fees
GST Rate revision in 23rd GST council meeting
23rd GST Council meeting on 10th November 2017
GST Rates for 178 items have been reduced from 28% to 18%. Click here to read all updates of the meet.- GST Rate for manufacturers and traders under composition scheme is 1 %
- Reduced from 28% to 18% W.e.f. 15th Nov 2017 – Shampoo, Perfume, tiles, watches
- Reduced from 28% to 12% – Wet grinders, tanks
- Reduced from 18% to 12% – Condensed milk, refined sugar, diabetic food
- Reduced from 12% to 5% – Desiccated coconut, idli dosa batter, coir products
- Reduced from 5% to Nil – Duar meal, khandsari sugar, dried vegetables
- For Restaurants within hotels, and room tariff less than Rs. 7,500 the GST rate is 5%. Also, the credit of ITC paid on inward supplies cannot be taken.
- For Restaurants within hotels, and room tariff greater than Rs. 7,500 the GST rate is 18% and credit of ITC paid on inward supplies can be availed.
- Outdoor catering continues to be charged at 18% with the availability of ITC on inward supplies.
In addition to the above, a few other items were mentioned in the Council’s announcement of GST rates. These items and the applicable GST rates on them are as follows:
Goods under GST Slabs
5% Tax Slab
- Sugar, Tea, Coffee and Edible oil will fall under the 5 % 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!
- Coal to be taxed at 5 % against the current 11.69 %. 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.
- The ‘mithai’ from the neighbouring sweet shop might lose some of its flavors as Indian sweets will now be taxable at 5 %. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.
18% Tax slab
- Toothpaste, hair oil, and soaps will all be taxed at 18 %, where currently they are taxed at 28 % 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 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”.
Services under GST Slabs
- 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%.
GST Rates for goods and services with HSN Chapters
If you want to know more about the GST rates & HSN codes according to the HSN chapters, please check the below table.
FAQs on GST Rates
What is the GST gold rate?
The GST rate on gold jewellery and gold biscuits or in any semi-manufactured form is 3% (IGST or both CGST and SGST 1.5% each) under HSN Chapter 71.
What is the GST rate applicable on mobile?
Currently, the GST rate on mobile phones is 18% under HSN Chapter 3 with HSN code 85171219.
What are the GST rates applicable on goods and services?
0%, 5%, 12%, 18% or 28% are the GST rates that can be applicable to goods and services. 3% or 0.25% may be charged for certain supplies such as gold, diamond and precious stones.
What are the correct GST slabs on goods and services
The GST law defines and classifies goods and services under 5%, 12%, 18% and 28%. However, a few items attract a lower GST rate of 0.25% and 3%. These include gold, diamond, and precious stones.
What are the 3 types of GST?
Presently, there are types of GST – Central Goods and Services Tax (CGST), State Goods and Services Tax (SGST), and Integrated Goods and Services Tax (IGST). While a taxpayer must deposit CGST and SGST for all intrastate transactions, IGST is deposited for imports and interstate transactions.
Who must pay the GST rate?
The supplier of taxable goods and services should charge and collect GST at the specified GST rate from their buyer or customer. Such GST collected must be deposited with the government after availing of the eligible input tax credit on their purchases. It is referred to as the forward charge. In some cases, the GST is paid directly to the government by the buyer or customer on a reverse charge basis.
Is GST payable at the GST rate on all products and services?
No. GST need not be paid on certain items that are exempted from GST. Exempted products include nil-rated, Non-GST and exempted by notification. Further, there are zero-rated products when sold, GST paid, if any, is eligible for a refund.
Further Reading on GST Rates Slab
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