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GST council has made the much-awaited announcements around tax rates on various categories of goods on day one of a two-day meeting of the said council at Srinagar. There has been a hype around these rates for a while and now these rates are finally in the public domain.

 

As soon as the GST rates were announced a huge wave of curiosity hit across industry and trade bodies. Everyone is evaluating their position as a result of this change. So in this article, we bring you our analysis of these GST rates.

 

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

GST Rates Structure

Tax RatesProducts 
0%MilkKajal
EggsEducations Services
CurdHealth Services
LassiChildren’s Drawing & Colouring Books
Unpacked FoodgrainsUnbranded Atta
Unpacked PaneerUnbranded Maida
GurBesan
Unbranded Natural HoneyPrasad
Fresh VegetablesPalmyra Jaggery
SaltPhool Bhari Jhadoo
5%SugarPacked Paneer
TeaCoal
Edible OilsRaisin
Domestic LPGRoasted Coffee Beans
PDS KeroseneSkimmed Milk Powder
Cashew NutsFootwear (< Rs.500)
Milk Food for BabiesApparels (< Rs.1000)
FabricCoir Mats, Matting & Floor Covering
SpicesAgarbatti
CoalMishti/Mithai (Indian Sweets)
Life-saving drugsCoffee (except instant)
12%ButterComputers
GheeProcessed food
AlmondsMobiles
Fruit JuicePreparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly
Packed Coconut WaterUmbrella
18%Hair OilCapital goods
ToothpasteIndustrial Intermediaries
SoapIce-cream
PastaToiletries
Corn FlakesComputers
SoupsPrinters
28%Small cars (+1% or 3% cess)High-end motorcycles (+15% cess)
Consumer durables such as AC and fridgeBeedis are NOT included here
Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)

In addition to the above, a few other items were mentioned in the Council’s announcement of rates. These items, and the applicable rates on them are as follows:GST Rates

  • Sugar, Tea, Coffee and Edible oil will fall under the 5 per cent 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!
  • 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”.
  • Coal to be taxed at 5 percent against current 11.69 per cent. 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.
  • Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. 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 ‘mithai’ from the neighbouring sweet shop might lose some of its flavour as Indian sweets will now be taxable at 5 per cent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.

Plus, it was announced that:

  • 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 per cent

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

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

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.

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