GST Rate Structure 2019 (India) – List Of Goods And Services Tax Slabs

GST Rate Structure

Goods And Services Tax is a major Tax reform policy introduced to reduce the prices of basic food items in India. Check here the latest GST Rate Structure 2019 depicting the List of Goods and Services falling under GST Rate Slabs of 0%, 5%, 12%, 18% and 28%.

GST Rate Structure In India has changed in recent times. The GST Council meets from time to time to revise the GST rates for various products. Here we have provided latest and updated Goods And Services Tax Slabs for different categories of commodities consumed /used by the people. Have a look…

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GST Rate Structure for some Common Items:

Tax Rates Products
0% Cereal grains, Sanitary napkins, All types of salt, Vegetables, etc.
5% Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal , Mishti/Mithai (Indian Sweets) and Life-saving drugs
12% Computers and processed food
18% Hair oil, toothpaste and soaps, capital goods and industrial
intermediaries
28% Luxury items such as small cars , consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks , High-end motorcycles 

GST Rate Structure

GST 0% Rate Slab

Goods Under GST 0% Tax:

  • Hulled cereal grains like barley, wheat, oat, rye, etc.
  • Bones and horn-cores unworked and waste of these products.
  • Palmyra jaggery
  • All types of salt
  • Dicalcium Phosphate (DCP) of animal feed grade conforming to IS specification No. 5470 :2002
  • Kajal [other than kajal pencil sticks]
  • Picture books, colouring books or drawing books for children
  • Human hair – dressed, thinned, bleached or otherwise worked
  • Sanitary Napkins
  • Unit container-packed frozen branded vegetables (uncooked/steamed)
  • Vegetables preserved using various techniques including brine and other preservatives that are unsuitable for immediate human consumption.
  • Music Books/manuscripts

Zero Percent GST Services:

  • Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the PMJDY (Pradhan Mantri Jan Dhan Yojana)

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GST Rate Structure For Goods

GST Rates Structure for Goods under 5%

Given below are the items that have been added to the 5% GST tax rate slab along with the other existing items-

Cashew nuts/cashew nuts in shell Ice and snow
Bio gas Insulin
Aggarbatti Kites
Pawan Chakki that is Wind-based Atta Chakki Coir Mats, Matting & Floor Covering
Postage or revenue stamps, stamp-postmarks, first-day covers, etc. Numismatic coins
Marble rubble Fly-ash blocks
Walking sticks Natural cork
Braille paper, braille typewriters, braille watches, hearing aids and other appliances to compensate for a defect or disability Accessories/parts for carriages designed for differently-abled individuals

 

GST Rate Structure for Goods under 12%

After the GST council meeting on 11th June, the following items were added to the 12% GST rates category-

  • Preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly
  • Ketchups, sauces and mustard sauce but excluding curry paste, mayonnaise and salad dressings, mixed condiments and mixed dressings
  • Bari made of pulses including mungodi
  • Menthol and menthol crystals, peppermint, fractionated/de-terpenated mentha oil, dementholised oil, Mentha piperita oil and spearmint oil
  • All diagnostic kits and reagents
  • Plastic beads
  • Exercise books and note books
  • Glasses for corrective spectacles and flint buttons
  • Spoons, forks, ladles, skimmers, cake servers, fish knives, tongs
  • Fixed Speed Diesel Engines
  • Two-way radio (Walkie talkie) used by defence, police and paramilitary forces etc.
  • Intraocular lens
  • Corrective spectacles
  • Playing cards, chess board, carom board and other board games, like ludo, etc.
  • Debagged/roughly squared cork
  • Items manufactured from natural cork
  • Agglomerated cork

GST 18 Percent Items List

The items mentioned below have been added to the 18% GST tax rate slab among the other existing items-

  • Kajal pencil sticks
  • Dental wax
  • Plastic Tarpaulin
  • School satchels and bags other than of leather or composition leather; toilet cases, Hand bags and shopping bags of artificial plastic material, cotton or jute; Handbags of other materials excluding wicker work or basket work
  • Headgear and parts thereof
  • Precast Concrete Pipes
  • Salt Glazed Stone Ware Pipes
  • Aluminium foil
  • All goods, including hooks and eyes
  • Rear Tractor tyres and rear tractor tyre tubes
  • Rear Tractor wheel rim, tractor centre housing, tractor housing transmission, tractor support front axle
  • Weighing Machinery other than electric or electronic weighing machinery
  • Printers other than multifunction printers
  • Ball bearing, Roller Bearings, Parts & related accessories
  • Transformers Industrial Electronics
  • Electrical Transformer
  • Static Converters (UPS)
  • CCTV including CCTV with video recorders
  • Set top Box for TV
  • Computer monitors not exceeding 17 inches
  • Electrical Filaments or discharge lamps
  • Winding Wires, Coaxial cables and Optical Fiber
  • Perforating or stapling machines (staplers), pencil sharpening machines
  • Baby carriages
  • Instruments for measuring length, for use in the hand (for example, measuring rods and tapes, micrometers, calipers)
  • Bamboo furniture
  • Swimming pools and paddling pools
  • Televisions/Monitors (upto 32 inches)
  • Power banks powered by Lithium-ion batteries
  • Sports goods, games consoles and related items with HS code 9504
  • All items with HS code 8483 including gear boxes, transmission cranks and pulleys
  • Used or retreaded pneumatic rubber tires

GST 28% Slab List

Small cars (+1% or 3% cess) High-end motorcycles (+15% cess)
Consumer durables such as AC and fridge Luxury & sin items like BMWs, cigarettes
and aerated drinks (+15% cess)

 

GST Rate Structure For Services

Just like GST Rate Slab for Goods, GST rates on services also comprises of 5%, 12%, 18% and 28%. However, government has exempted healthcare and educational services from the purview of the GST. Some of the services categorized under different slabs are mentioned below :

GST 0% Rate Slab

  • Chargeable services offered on Basic Savings Bank Deposit (BSBD) account opened under the PMJDY (Pradhan Mantri Jan Dhan Yojana)

GST 5% Tax Slab

  • Railways-Transportation of goods, passengers
  • Goods transported in a vessel from outside India
  • Renting a motor cab without fuel cost
  • Transport services in AC contract/stage or radio taxi
  • Transport by air (scheduled)/air travel for purpose of pilgrimage via chartered/non-scheduled flights
  • Tour operator services
  • Leasing of aircrafts
  • Print media ad space
  • Working for printing of newspapers

12% GST Rate Structure

  • Rail transportation of goods in containers from a third party other than Indian Railways
  • Air travel excluding economy
  • Food /drinks at restaurants without AC/heating or liquor license
  • Renting of accommodation for more than Rs.1000 and less than Rs.2500 per day
  • Chit fund services by foremen
  • Construction of building for the purpose of sale
  • IP rights on a temporary basis
  • Movie Tickets less than or equal to Rs. 100

GST Slab Rate – 18%

  • Food/drinks at restaurants with liquor license
  • Food /drinks at restaurants with AC/heating
  • Outdoor catering
  • Renting for accommodation for more than Rs.2500 but less than Rs.5000 per day
  • Supply of food, shamiyana, and party arrangement
  • Circus, Indian classical, folk, theatre, drama
  • Supply of works contract
  • Movie Tickets over Rs. 100

GST Tax Slab – 28%

  • Entertainment events-amusement facility, water parks, theme parks, joy rides, merry-go-round, race course, go-carting, casinos, ballet, sporting events like IPL
  • Race club services
  • Gambling
  • Food/drinks at AC 5-star hotels
  • Accommodation in 5-star hotels or above

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GST on Loans and Advances

Service Tax charged earlier on Loans has also been replaced by GST.  The rate of Service Tax was 15% and that of GST is 18%. At first instance, this decision received negative response by common people as they though their EMI’s would increase as the new Tax Rate has been increased by 3%. However, this is not the case as GST is not imposed on repayment of loan or on payment of Interest on Loan.

GST will be applicable only on the processing charges and any other charges paid to the bank excluding the principal repayment and interest payment. These other charges include the Loan Processing Fees, Loan Prepayment Charges and other charges, if any. As a major chunk of the loan repayment comprises of principal repayment and interest payment, the impact of GST on Loans would be very negligible.

GST Rate Structure for Some Important Loans:

  • Personal Loan: 18%
  • Home Loans: 18%
  • Car Loan: 18%

GST on Cars

Personal use vehicles such as Cars, High-end Motorcycles, etc. featuring a petrol or diesel engine come under the category of GST 28% Rate Slab. However, in addition to GST, a composition cess is also applicable to cars over and above the GST Rate.

Therefore as per the GST Rate Structure, the overall tax rate applicable to vehicles will range from 29% to 50%. Cars running on eco-friendly technology such as fuel cells (including hydrogen fuel cell) and electric vehicles will have a lower GST Rate Tax.

GST on Gold

GST Tax Rate on items made of Gold such as Gold Jewelry is 3%. However, a 5% GST rate is applicable to making charges applied to gold jewelry in case the manufacturing is outsourced to a job worker. This can however, be charged as Input Tax Credit (ITC) by the jeweler and only a 3% GST charge is applied to the final bill paid by the purchaser of gold jewelry items. 

GST On Real Estate

The GST Rate on real estate purchases was 12% % till 31st March 2019. From 1st April 2019 onwards, GST Rate Structure for Real Estate has been changed. Now GST Rates 2019 applicable on residential real estate is 5% for non-affordable housing properties and 1% for affordable housing properties.

No GST is applicable in case you are purchasing a ready to move in property. Additionally, different GST rates are applicable to various building materials used in the construction of houses/flats. This can range from 5% (sand, marble rubble, etc.) to 28% (cement, etc.). 

GST on Food

Food items especially fresh food fall under 0% GST Rate Slab. However, packaged food stuff and semi-processed/processed foods are charged with GST rates ranging from 5% to 18%. While no food stuff are currently included in the highest 28% GST Tax Slab. The 18% rate of GST is applicable to some common food products such as chocolates as well as baked goods such as cakes. 

Read Key FactsBenefits of GST in India

GST Rates and its Impact

The GST committee has decided a four-tier Goods and Services Tax (GST) structure that will extend from 5% to 28%. The move is important step towards the execution of the greatest roundabout tax change, which the administration expectations will protect the common man from growth. The setting of rates by the GST board denote a biggest milestone on development towards the rollout of the solitary tax that will substitute different state and central requires and will make a consistent national market for goods and services. The four GST chunks are 5%, 12%, 18% and 28%.

On the basis of the use and type of goods and services, the four GST tax are resolute. The four rates are as follows:

  • 5% – It will be levied on necessary food things of mass utilization. This will incorporate items, for example, flavors, tea and mustard oil.
  • 12% – It will mostly include processed food items.
  • 18% – It will comprise stuffs like soaps, oil, toothpaste, refrigerators and smart phones.
  • 28% – It will consist two tiers: First tier will comprise white goods and cars and the second tier will include sin goods like tobacco products, luxury cars, pan masala and aerated drinks. Also, the second tier will invite 28% plus cess.
  • Zero Rate GST will be relevant for the 50% of goods falling under buyer value list. This will likewise incorporate food grains. In Addition the central government has offered power to state government to impose 2% additional or lower tax over beyond the rate of SGST.
  • 0% GST Rate will be valid on 50% basic commodities that are included into the Consumer Price Index. This will comprise food grains and is probably upon to help the population and control inflation to an expansive degree.

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5 Impacts Of GST Rates On Your Life

As far back as the Goods and Services Tax was declared, there has been an Air of uncertainty gliding around its effect on the regular man’s wallet. The Finance Minister Arun Jaitley declared the four GST slab rates yesterday – 5%, 12%, 18% and 28% – and India expects to actualize GST from April 1 2017.

While you can read the fundamental about this new tax structure here, we should experience the five ways this four-slab structure impacts your life:

  • Your tryst with comfort wind up becomes costly. Luxury cars, circulated air through beverages, liquor and will get costly as they will be taxed at 28% or higher. There will be a cess relevant over the peak rate of 228% across luxury goods
  • Smoking will get to very costly as tobacco items will be taxed at 28%. There will also be a cess applicable over the peak rate of 28 percent, inflating the aggregate tax assessment on tobacco items in the scope of 40%-65%.
  • Essential wares like wheat, grains and others won’t fall under the domain of GST and will have 0% tax assessment.
  • Items of mass utilization like shoes, flavors, mustard oil, tea, utensils and garments will get taxed at 5%.
  • Mobile telephones, cleansers, eating out will fall under the 12-18% duty rate and will keep on burning a nominal hole in your pocket.

The Impact of GST Rate on Businessmen

Despite the fact that the government is yet to choose which thing falls under which tax section, however until further notice, businesspeople can decide applicable GST rate on goods based on estimates. The GST rate on products will be around be equivalent to the rate determined by up excise duty and VAT imposed at present on such goods. For example, if as of now extract obligation on car is required at the rate of 12.5% and VAT is exacted at the rate of 13.5%, then it has been taxed at 26%. Consequently, it can be reasoned that under GST, assessment will be collected on it at the rate of 28%.

Sourcing
  • Inter-state procurement could demonstrate suitable
  • May open chances to solidify providers/sellers
  • Extra obligation/CVD and Special Additional obligation parts of traditions duty to be replaced
Distribution
  • Current plans for dissemination of completed goods may never again be ideal with the removal of the concept of duty on manufacturing
  • Changes in duty framework could warrant changes in both acquisition and distribution arrangements
  • Current system structure and item streams may require audit and conceivable adjustment
Pricing and profitability
  • Tax savings funds coming about because of the GST structure would require repricing of items
  • Margins or price mark-ups would should be rethought
Cash flow Removal of the idea of extract duty on assembling could bring about change in income and stock expenses as GST would now be paid at the time of offer/supply as rather than the time or removal of goods from the industrial facility
System changes and transaction management
  • Potential changes to accounting and IT systems in areas of ace data, supply chain transactions, system design
  • Existing open exchanges and balances as on the cut off date should be relocated out to guarantee smooth move to GST
  • Changes to supply chain reports (e.g., buy enroll, deals enlist, administrations enlist), other tax reports and structures (e.g., solicitations, buy orders) require survey
  • Proper measures, for example, preparing of workers, consistence under GST, client instruction, and following of stock credit are expected to guarantee smooth move to the GST administration

 

Check Out: GST Registration Procedure

The key imperatives for companies are:

  • Understand key zones of effect in their business
  • Prepare distinctive situations for the plan and use of GST
  • Continually track arrangement advancement with respect to GST and refresh arranged situations
  • Identify any ranges of unfavorable effect and get ready possibility measures
  • Identify issues and concerns obliging portrayal to specialists and build up a technique for powerful backing

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