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Pramit Pratim Ghosh | Nov-21-2019
- Introduction
- GST Exemption List - Goods & Services
- Essential Goods & Services at 5% GST slab
- Standard Goods & Services at 12% GST slab
- Standard Goods & Services at 18% GST slab
- Special / Luxury Goods & Services at 28% GST slab
- Articles outside the GST Tax Rate Slabs
- Treatment of Luxury / Demerit Goods
Introduction
Ever since GST or Goods and Services Tax regime was announced, there has been a wide speculation about the GST rates bracket. The GST Council is the body that decides the rate slabs and the GST Council has been periodically revising the list of goods and services for each rate slab.
It’s clear that the Government’s intentions are to have lower tax rate for goods and services which are essential needs and higher tax rates for goods and services that are considered as luxury supplies.
Here’s a curated a list of GST rates structure for various goods and services, classified across the different GST tax slabs –
GST Exemption List - Goods & Services
|
Goods |
Services |
|
Poultry Products – Fresh Meat, Fish, Chicken, Eggs |
Hotel Services priced at less than INR 1000 |
|
Dairy Products – Milk, Curd, Butter Milk, Jaggery (Gur), Lassi, unpacked Paneer |
Education (exemption continued from before) |
|
Fresh Fruits & Vegetables |
Healthcare (exemption continued from before) |
|
Food Items – Natural Honey, Flour (Atta & Maida), Pulses, Basmati Rice, Gram Flour (Besan), Bread, Vegetable Oil, Religious Sweets (Prasad), Common Salt |
|
|
Cosmetics & Accessories – Bindi, Vermillion (Sindoor), Bangles |
|
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Stationery – Stamps, Judicial Papers, Printed Books, Newspapers |
|
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Handloom Products |
|
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Textile – Jute, Silk |
|
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Contraceptives |
Essential Goods & Services at 5% GST slab
|
Goods |
Services |
|
Dairy Products – Skimmed Milk Powder, Milk food for babies, Condensed milk, Packaged Paneer, Cream |
Railway Travel |
|
Frozen Vegetables |
Economy Class Air Travel |
|
Food Items – Sugar, Spices, Edible Oil, Pizza Bread, Rusk, Sweets, Fish Fillets, Tapioca (sabu daana) |
Cab Aggregators (e.g. Uber & Ola) |
|
Beverages – Coffee, Tea, Juices |
|
|
Apparel – below 1000 INR |
|
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Footwear – below 500 INR |
|
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Fuel – Kerosene, LPG, Coal |
|
|
Solar Panels |
|
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Common Utilities - Broom |
|
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Medical Goods - Medicines, Stents |
|
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Newsprint |
|
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Lifeboats |
|
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Textile – Cotton, Natural Fibre and yarns |
|
|
Incense Sticks (Agarbatti) |
Standard Goods & Services at 12% GST slab
|
Goods |
Services |
|
Dairy Products – Butter, Cheese, Ghee |
Non-AC Hotels & Restaurants |
|
Packaged Dry Fruits |
Business Class Air Travel |
|
Food Items – Snacks (Namkeen & Bhujia), Packaged Chicken, Sausages, Jams, Sauces |
|
|
Beverages – Fruit Juices, Packed Coconut Water |
|
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Apparel – above 1000 INR |
|
|
Personal Hygiene – Tooth Powder |
|
|
Stationery – Exercise Books, Notebooks |
|
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Common Utilities – Sewing Machine, Umbrella |
|
|
Ayurvedic Medicine |
|
|
Mobile Phones |
Standard Goods & Services at 18% GST slab
|
Goods |
Services |
|
Dairy Products – Ice Cream |
Accommodation at hotels with tariff of more than 2500 INR but less than 7500 INR |
|
Preserved Vegetables |
Supply of food / drinks in AC / 5 star and above rated restaurants |
|
Food Items – Flavoured refined sugar, Pasta, Corn Flakes, Pastries, Cakes, Soups, Instant Food Mixes, Processed Foods |
Telecom Services |
|
Beverages – Mineral Water |
IT Services |
|
Branded Garments |
Financial Services |
|
Footwear – above 500 INR |
Works Contract |
|
Personal Hygiene – Tissues, Toilet Paper, Hair Oil, Soap Bars, Toothpaste |
Cinema Tickets worth 100 INR or les |
|
Stationery – Envelopes, Fountain Pens |
|
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Electronic Equipment – Printed Circuits, Monitors |
|
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Iron & Steel Products |
|
|
Biri wrapper leaves (Tendu Patta) |
|
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Biscuits |
|
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Textile – Man-made fibre and yarn |
Special / Luxury Goods & Services at 28% GST slab
|
Goods |
Services |
|
Food Items – Chocolates, Chewing Gum, Custard Powder |
Accommodation at hotels with tariff of more than 7500 INR |
|
Beverages – Aerated Water |
Race course betting |
|
Personal Hygiene – Deodorants, Shaving Cream, After Shave, Hair Shampoo, Dye, Sunscreen, Perfume, Face Creams, Detergents |
Cinema Tickets worth more than 100 INR |
|
White Goods – Vacuum Cleaner, Shavers, Hair Clippers, Washing Machines, Dish Washers, Water Heaters & other Home Appliances |
|
|
Speakers |
|
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Cameras |
|
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Automobiles & Motor Vehicles* |
|
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Housing Materials – Paint, Wallpaper, Ceramic Tiles, Cement |
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Weighing Machines, Vending Machines, ATM |
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Fireworks |
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Luxury / Demerit Goods* - Pan Masala, Tobacco, Bidis, Aerated Drinks & Motor Vehicles |
*Note – Luxury / Demerit Goods as listed above will also attract a compensation cess over and above the GST rate of 28%
Articles outside the GST Tax Rate Slabs
- Gold, gems, jewellery – 3%
- Rough Precious & Semi – Precious Stones – 0.25%
Treatment of Luxury / Demerit Goods
In addition to the rates which have been fixed for major categories of goods and services, the GST council has approved the compensation rates for 5 luxury / demerit items. The proceeds of this cess will go into the compensation fund which would be used to bridge any tax revenue gap for states in the first five years of GST. The items that will be levied with the compensation cess, over and above the GST tax rates which are applicable on them are as follows:
|
Items |
GST Rate Applicable |
Approved Cess Range |
Cess Ceiling |
|
Coal |
5% |
INR 400 / tonne |
INR 400 / tonne |
|
Pan Masala |
28% |
60% |
135% |
|
Tobacco |
28% |
61% - 204% |
INR 4170 / thousand |
|
Aerated Drinks |
28% |
12% |
15% |
|
Motor Vehicles |
28% |
1% – 15% |
15% |
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