Looking for a business loan

*

Thank you for your interest, our team will get back to you shortly

Please Fill the Details to download

Thank you for your response

Get Expert Assistance

Thank you for your response

Our representative will get in touch with you shortly.

India's #1 GST software

1 click autofill GSTR-3B with G1 and 2B data

Download 2B data for multiple months in < 2mins

GSTR-2B vs purchase matching in under 1 min

OR
India's No 1 GST software

Save upto 7% in taxes

Claim 100% ITC and save ~4% GST

3x faster experience

Save 2 man days every GSTIN month

Easy to connect

Connect with 100s of ERP's, import data error-free

GST Rates in 2022 – List of Goods and Service Tax Rates, Slab & Revision

Updated on :  

08 min read

GST rates changes hit industries and trade bodies. Everyone from business to consumers evaluates their position as a result of this change.

So in this article, we bring you the meaning of the GST rate and the key changes in GST rates from the inception of the GST law so far.

Meaning of GST rates and present GST rate structure

GST rate refers to the percentage rate 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.

The GST slabs are pegged at 5%, 12%, 18% & 28%. According to the GST latest news from the GST council, the tax structure for common-use goods are as under:

GST Rates Structure for Goods and services under 5%, 12%, 18% & 28%

Edit
Tax GRatesProducts
0%MilkKajal
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%GurBesan
0%Unbranded Natural HoneyPrasad
0%Fresh Vegetables

Palmyra Jaggery

0%Salt

Phool Bhari Jhadoo

5%SugarPacked Paneer
5%TeaCoal
5%Edible OilsRaisin
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%SpicesAgarbatti
5%Coal

Mishti/Mithai (Indian Sweets)

5%Life-saving drugs

Coffee (except instant)

12%ButterComputers
12%Ghee

Processed food

12%AlmondsMobiles
12%Fruit Juice

Preparations of Vegetables, Fruits, Nuts or other parts
of Plants including Pickle Murabba, Chutney, Jam, Jelly

12%Packed Coconut WaterUmbrella
18%Hair OilCapital goods
18%Toothpaste

Industrial Intermediaries

18%SoapIce-cream
18%PastaToiletries
18%Corn FlakesComputers
18%SoupsPrinters
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)

GST rate overview
*Note: Labelled and pre-packaged paneer, buttermilk, and curd attract 5% GST from 18th July 2022.

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.

GST rate change

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

Edit
Description of goods or servicesOld RateNew Rate
What's costlier
Cut and Polished diamonds0.25%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 ratesNil
Ostomy Appliances12%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 disability12%5%
Transport of goods and passengers by ropeways (with ITC of services)18%5%
Renting of truck or goods carriage including the fuel cost18%12%
*The rates will come into effect from 18th July 2022 subject to CBIC notification

Pruning of GST exemptions

Edit
Description of goods or servicesOld RateNew Rate
Earlier fully exempted, now withdrawn
Maps and hydrographic or similar charts of all kinds, including atlases, wall maps, topographical plans and globes, printedNil12%
Cheques, lose or in book formNil18%
Parts of goods of heading 8801Nil18%
Air transportation of passengers to and from north-eastern states and Bagdogra now restricted to economy classNilCondition 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 cellsNilApplicable rate
Room rent (excluding ICU) exceeding Rs.5,000 per patient day taxed without ITCNil5%
Common bio-medical waste treatment facilities for treating or disposing biomedical waste shall be taxed with availability of ITC, like CETPsNil12%
Hotel accommodation priced up to Rs.1,000 per dayNil12%
Training or coaching in recreational activities on arts or culture, or sports other than by individualsNilApplicable rate
Earlier partially exempted, now withdrawn
Petroleum/ Coal bed methane5%12%
e-Waste5%18%
Scientific and technical instruments to public funded research institutes5%Applicable rate
*The rates will come into effect from 18th July 2022 subject to CBIC notification

Correction of Inverted tax structure

Edit
Description of goods or servicesOld RateNew Rate
Solar water heaters and systems5%12%
Prepared or finished leather or chamois leather or composition leathers5%12%
Job work for processing of hides, skins, leather, making of leather products including footwear, and clay brick manufacturing5%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, etc12%18%
Centrifugal pumps, submersible pumps deep tube-well turbine pumps, bicycle pumps that are power-driven mainly for handling water12%18%
Milking machines and dairy machinery, cleaning, sorting or grading machines and its parts for eggs, fruit or other agri produce12%18%
Lights and fixture, LED lamps, their metal printed circuits board12%18%
Marking out and drawing instruments12%18%
Services by foreman to chit fund12%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, etc12%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, 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:

Edit
ItemBeforeAfter
Import of expensive life-saving medicines such as Zolgensma, Viltepso or as recommended by a relevant government department for personal use12%Nil
Waste unintentionally generated during the fish meal production, except for Fish OilApplicable rateNil from 1st July 2017 to 30th September 2019
IGST on the goods sold at Indo-Bangladesh border haatsApplicable rateNil
Transport of goods by vessel and air from India to outside India extended up to 30th September 2022NilNil
Granting of National Permit to goods carriages on a fee payment18%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 202218%Nil
‘Keytruda’ drug for the treatment of cancer12%5%
Biodiesel, sold to the oil marketing companies for blending it with diesel12%5%
Fortified Rice Kernels for the Integrated Child Development Services Scheme, etc18%5%
Retro fitment kits in vehicles for the disabledApplicable rate5%

*With effect from 1st October 2021 subject to the CBIC notification

GST Rates increased on Goods & Services:

Edit
ItemBeforeAfter
Polyurethanes and other plastics waste and scrap5%18%
Cartons, bags, boxes, packing containers made out of paper, etc12/18%18%
Papers such as cards, catalogue, printed material Under Chapter 4912%18%
Licensing, broadcasting and showing original films, Radio Television programmes, sound recordings12%18%
Printing and reproduction of recorded media being the publisher’s content12%18%

*With effect from 1st October 2021 subject to the CBIC notification

GST rate corrections for inverted tax structure:

Edit
ItemBeforeAfter
Specified Renewable Energy Devices and parts5%12%
Ores and metal concentrates5%18%
All kinds of pens12/18%18%
Railway parts, locomotives and goods in Chapter 8612%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:

Edit
ItemsOld rateProposed rate
Tocilizumab5%Nil
Amphotericin-B5%Nil
Remedesivir12%5%
Anti-coagulants like Heparin12%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 rate5%

Medical equipment required for COVID treatment:

Edit
ItemsOld rateProposed rate
Medical Grade Oxygen12%5%
Oxygen concentrators/ generators (which include personal imports)12%5%
Ventilators and ventilator masks/ cannula/ helmets12%5%
BiPaP machine12%5%
High flow nasal cannula device12%5%
Pulse oximeters12%5%

COVID-19 testing kits and items utilised for the prevention of COVID-19:

Edit
ItemsOld rateProposed rate
Covid-19 testing kits12%5%
Specified Inflammatory Diagnostic Kits, namely D-Dimer, IL-6, Ferritin and LDH12%5%
Hand sanitiser18%5%
Temperature checking equipment18%5%

Others:

Edit
ItemsOld rateProposed rate
Gas/electric/other furnaces for crematorium, including their installation, etc18%5%
Ambulances28%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 1 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

ItemOld RateNew Rate
Plates and cups made of flowers, leaves and bark5%Nil
Caffeinated Beverages18%28%+12% cess
Supplies of Railways wagons & coaches (without refund of accumulated ITC)5%12%
Outdoor Catering (without ITC)18%5%
Diamond Job work5%1.50%
Other Job work18%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 bags18%12%
Marine fuel18%5%
Almond Milk 18%
Slide fasteners18%12%
Wet grinders (consisting of stone as a grinder)12%5%
Dried Tamarind5%Nil
Semi-precious stones- cut & polished3%0.25%
Specified goods for petroleum operation under HELP*Applicable Rate5%

*Hydrocarbon Exploration Licensing Policy

ItemOld RateNew 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%
GST Exemption available for:
  • 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.NOItemsNew RateOld rate
1Rakhi (other than that of precious or semi-precious material )Nil18%
2Sanitary NapkinsNil12%
3Circulation and commemorative coinsNil5%
4Raw material for broomNil12%
5Stone/Marble/Wood DeitiesNil5%
6Sal leaves and its productsNil18%
7Khali donaNil18%
8Coir pith CompostNil5%
9Chenille fabrics and other fabrcis under 58015%12%
10Handloom dari5%12%
11Phosphoric Acid (fertilizer grade only)5%12%
12Handmade Carpets, Textile Floor, Coverings5%12%
13Knitted cap/topi having retails sale value exceeding Rs. 10005%12%
14Kota Stones and Simliar Stones (other than polished)5%18%
15Ethanol for sale to oil marketing companies for blending with fuel5%18%
16Solid Bio fuel pellets5%18%
17Marine Engine5%28%
18Bamboo Flooring12%18%
19Hand Operated Rubber Roller12%18%
20Brass Kerosene Pressure Stove12%18%
21Zip and Slide Fastener12%18%
22Handicrafts (Excluding handmade)12%18%
23Handbags including pouches and purses; jewellery box12%18%
24Fuel Cell vehicle12%28%
25Televisions upto 68 cm18%28%
26Glaziers’ putty, grafting putty, resin cements18%28%
27Refrigerators, freezers, water cooler, milk coolers, ice cream freezer18%28%
28Washing Machines18%28%
29Food Grinders & mixer18%28%
30Vacuum Cleaners18%28%
31Paints and Varnishes (including enamels and lacquers)18%28%
32Shavers, Hair Clippers18%28%
33Hair Cleaners18%28%
34Storage water heaters18%28%
35Immersion heaters18%28%
36Hair Dryers, Hand Dryers18%28%
37Electric Smoothing irons18%28%
38Scent Sprays18%28%
39Toilet Sprays18%28%
40Pads for application of cosmetics or toilet preparations18%28%
41Lithium-ion batteries18%28%
42Powder Puffs18%28%
43Special purpose motor vehicles18%28%
44Work Trucks (Self-propelled, not fitted with lifting or handling equipment)18%28%
45Trailers & Semi trailers18%28%

List of Goods Exempt

Fortified Milkexempt5%

Recent GST Rate Changes on Services

Edit

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 %

If you want to know more about the GST rates & HSN codes, please check the below table.

GST Rates for goods and services with HSN

Chapter 1Live Animals, Bovine & Poultry
Chapter 2Meat & Edible Offal of Animals
Chapter 3Fish Meat & Fillets
Chapter 4Eggs, Honey & Milk Products
Chapter 5Non Edible Animal Products
Chapter 6Live Trees & Plants
Chapter 7Vegetables
Chapter 8Fruits & Dry Fruits
Chapter 9Tea, Coffee & Spices
Chapter 10Edible Grains
Chapter 11Milling Industry Products
Chapter 12Oil Seeds, Fruit & Part of Plants
Chapter 13Gums, Resins, Vegetable SAP & Extracts
Chapter 14Vegetable Material & Products
Chapter 15Fats, Oils & Waxes their Fractions
Chapter 16Preserved/Prepared Food Items
Chapter 17Sugar, Jaggery, Honey & bubble Gums
Chapter 18Chocolate & Cocoa Products
Chapter 19Pizza, Cake, Bread, Pasta & Waffles
Chapter 20Edible Plants – Fruits, Nuts & Juices
Chapter 21Tea & Coffee Extract & Essence
Chapter 22Water – Mineral & Aerated
Chapter 23Flours, Meals & Pellets
Chapter 24Tobacco, Stemmed & Stripped
Chapter 25Salts & Sands
Chapter 26Mineral Ores & Slags
Chapter 27Fossil Fuels – Coal & Petroleum
Chapter 28Gases & Non Metals
Chapter 29Hydrocarbons – Cyclic & Acyclic
Chapter 30Drugs & Pharmaceuticals
Chapter 31Fertilisers
Chapter 32Tanning & Colouring Products
Chapter 33Essential Oils, Beauty Products
Chapter 34Soaps, Waxes, Polish products
Chapter 35Casein, Albumin, Gelatin, Enzymes
Chapter 36Propellants, Explosives, Fuses, Fireworks
Chapter 37Photographic & Cinematographic Films
Chapter 38Insecticides, Artificial Carbon & Graphite
Chapter 39Polymers, Polyethylene, Cellulose
Chapter 40Rubber, Plates, Belt, Condesnsed Milk
Chapter 41Raw hides & Skins, Leather
Chapter 42Trunks, Suit-cases, Vanity cases
Chapter 43Raw Fur Skins, Articles of apparel
Chapter 44Fuel wood, Wood Charcoal
Chapter 45Natural Cork, Shuttlecock Cork
Chapter 46Plaiting Materials, Basketwork
Chapter 47Mechanical & Chemical woodpulp
Chapter 48Newsprint, Uncoated paper & paperboard
Chapter 49Printed Books, Brochures, Newspapers
Chapter 50Silk Worm Coccon, Yarn, Waste & Woven Fabrics
Chapter 51Wool materials & Waste, Animal Hairs
Chapter 52Cotton materials, Synthetics & Woven fabrics
Chapter 53Flex raw, Vegetable materials & Paper yarn
Chapter 54Synthetic felaments, Woven fabrics & Rayons
Chapter 55Synthetic felament tows & Polyster staple fiber
Chapter 56Towels, Napkins, ropes & Netting materials
Chapter 57Carpets & Floor coverings textile Handlooms
Chapter 58Labels, Bades, Woven pile & Chennile, Terry towelings
Chapter 59Rubberised textile fabrics, Convayer belts
Chapter 60Pile,Wrap Knit,Tarry & Croched fabrics
Chapter 61Men & Women Clothing
Chapter 62Men & Women Jackets, Coats & Garments
Chapter 63Blankets & Bedsheets
Chapter 64Shoes & Footwear Products
Chapter 65Hats & Accessories
Chapter 66Umbrellas & Accessories
Chapter 67Artificial flowers, Wigs & False Beards
Chapter 68Monumental & Building Stones
Chapter 69Bricks, Blocks & Ceramics
Chapter 70Glasses, Mirrors, Flasks
Chapter 71Pearls, Diamonds, Gold, Platinum
Chapter 72Iron, Alloys, Scrap & Granules
Chapter 73Iron tube, piles & Sheets
Chapter 74Copper Mattes, Rods, Bars, Wires, Plates
Chapter 75Nickel Mattes & Unwrought Nickel
Chapter 76Unwrought Aluminium- Rods, Sheets & Profiles
Chapter 78Unwrought Lead – Rods, Sheets & Profiles
Chapter 79Unwrought Zinc – Rods, Sheets & Profiles
Chapter 80Unwrought Tin – Rods, Sheets & Profiles
Chapter 81Magnesium, Cobalt, Tungsten Articles
Chapter 82Hand Tools & Cutlery
Chapter 83Locks, Metal Mountings & Fittings
Chapter 84Industrial Machinery
Chapter 85Electrical Parts & Electronics
Chapter 86Railway Locomotives & Parts
Chapter 87Tractors & Motor Vehicles
Chapter 88Balloons, Parachutes & Airlift Gear
Chapter 89Cruise Ships & Boats
Chapter 90Medical, Chemical & Astronomy
Chapter 91Watches & Clocks
Chapter 92Musical Instruments
Chapter 93Military Weapons & firearms
Chapter 94Furniture, Bedding & lighting
Chapter 95Children Toys, Table & Board Games & Sports Goods
Chapter 96Pencil Lighter Toiletries
Chapter 97Paintings Decoratives Sculptures
Chapter 98Machinery Lab Chemicals Drugs Medicines
Chapter 99Services

If you are using any version of Tally as accounting software, you can easily import all your sales and purchase data to ClearTax GST software and file your returns. Now you can integrate your Tally data and use ClearTax GST software for all GST compliance.

FAQs on GST Rates

What are the 5 rates of GST?

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 called 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

inline CTA
India’s Fastest and Most Advanced 2B Matching
Maximise ITC claims, use smart validations to correct your data and complete 2B matching in <1 minute

All Articles

  1. BOT HAM projects involve a number of transactions that are subject to GST. Read more about the taxation under GST law through this article
  2. In this article, we discuss the GST rates and HSN codes that are applicable on laptops and other computer accessories in India.
  3. GST Rate and HSN Code for mask, hand wash, sanitizer, PPE kit and ventilators which have become essentials during the COVID-19 pandemic for any consumer.
  4. The GST rates have been changed for many items since its inception. This article covers how the businesses and CA's have to deal with GST rate changes.
  5. This article will help you understand whether a dealer with ZERO outward supplies is required to file GSTR 1 return and how to file a NIL GSTR 1 return.