GST Tax Rates

GST has been identified as one of the most important tax reforms post-independence. It is a tax trigger which will lead to business transformation for the industry. Tax Rates for most of the items under the goods & services tax has been finalized in the GST Council meeting.

While the tax rates on daily use items such as sugar, tea or hair oil have come down, the tax rates have been increased for the luxury items & eating out in a five-star hotel will be in the highest tax rate bracket. Under the present arrangement, the government has decided to implement a 4-slab tax rate structure under GST regime which shall cover every product & commodity sold or bought in India.

Under 0% tax rate, commodities such as food grains, rice, and wheat are included.

The first slab is 5% tax rate, under which mass consumption products are included such as mustard oil, tea & spices.

The second slab is 12% tax rate, under which processed food has been included.

The third slab is 18% tax rate, under which consumer goods have included such as toothpaste, refrigerator & smartphones etc.

The fourth slab is 28% tax rate, under which luxury items such as cars & secondly tobacco & aerated drinks are included.

Impact of GST tax rates on Mobile Phones

Most mobile phones may get costlier with the government imposing GST of 12% tax rate taking away the benefit of the duty difference that was being offered to local manufacturers. Prices of phones that are imported are likely to go down, while those that were manufactured locally may go up. For mobile phones imported & sold in India, duty was in the range of 17% to 27% tax rate. which may now come down to 12% tax rate. For phones that are manufactured & sold within India, the duty varied from 7.5% to 17% tax rate including the value added tax which varied between 5% to 14.5% tax rate, now that comes down to 12% tax rate as well.

Impact of GST rates on Tobacco

On Paan masala, the cess will be 60%, while in tobacco the levy will vary from 71% -204%. Branded Gutkha will be slapped a cess of 72% while smoking mixtures of pipes & cigarettes will attract a levy of 290%.

Impact of GST rates on Cigarettes

Filter & non-Filter cigarettes not exceeding 65mm will attract cess of 5% plus Rs. 1,591/- per 1000 sticks. For Cigars, a hefty levy of 21% or Rs. 4,170/- per 1000 sticks, whichever is higher, would be levied. The cess will be over & above the peak GST rates of the 28%.

Goods Exempted from GST

  1. Curd
  2. Meat
  3. Fish
  4. Fruits & vegetables
  5. Bread
  6. Salt
  7. Honey
  8. Printed books
  9. Newspaper
  10. Bangles & Handloom
  11. Aquatic/Poultry/cattle feed
  12. Papad, Puffed Rice
  13. Bangles (non-precious metals)

There is a difference between existing tax rates & rates after GST on various items such as:

  1. Consumer Goods items
  2. Lifestyle & Home items
  3. Beauty & Personal Care Product
  4. Kitchenware & Appliances
  5. Construction
  6. Dairy & Farm Products
  7. Medical Supplies
  8. Metals & Minerals
  9. Others

Here we have compared the rates under GST with the tax structure. This calculation take into account Maharashtra VAT, which means existing rates may vary for other states.

Consumer Goods Items

Features TaxRaahi Tally
Aluminum Foil 18.5 28
Agarbatti 0 12
Frozen meat 6 12
Dry Fruits 6 12
Coffee/tea 6 5
Preserved vegetables 0 18
Butter, ghee, cheese 6 12
Jams, jellies 12 18
Branded paneer 0 5
Branded cereals 0 5
Cocoa butter, oils chocolates 26 28
Instant, aroma coffee 26 28
Protein concentrates, sugar syrups 26 28
Razors 26 28
Dental floss 26 28
Toothpaste 26 28
Deodorants 26 28
Aftershave 26 28
Shaving cream 26 28
Soyabean, groundnut, sunflower seeds 6 5
Infant use preparations 19.5 18
Pasta, corn flakes, cakes 19.5 18
Frozen vegetables 6 5
Condensed milk 18.5 18
Toilet paper 18.5 18
Hot water bottles 18.5 18
Petroleum jelly, paraffin wax 20 18
Pencil sharpeners, knives 18.5 12
Ice cream, sherbet 26 18
Refined sugar 26 18
Soap 26 18
Dentrifices – toothpaste 26 18
Hair oil 26 18
Handmade safety matches 18.5 5
Broomsticks 18 5
Candles 26 12
Tooth powder 26 12
Led lights 26 12
Milk beverages 26 12
Ready to eat namkeen/bhujiya 26 12
Beet sugar, cane sugar 26 5
Pickels 18 12


Lifestyles & Home Items

Items Current tax rate % After GST rate %
Air conditioner 26 28
Refrigerator 26 28
Leather bags 6 28
Cell phones 6 18
Bicycles 18.5 18.5
Yachts 18.5 28
Storage water heaters 26 28
Dish washing machines 26 28
Printer, photocopier, fax machines 26 18
Wristwatches 26 28
Furniture 26 28
Video game consoles 26 28
Exercise equipments 26 28
Sports goods 18.5 12
Spectacle lens 18.5 12
Whey proteins & Fitness supplements 26 18
Hats and other headgears 26 18
Steel utensils 18.5 5


Construction

Items Current tax rate % After GST rate %
Cement 26 30
Paints 28 30
Wallpaper 18.5 28
Putty 26 28
Plaster 26 28
Tempered Glass 26 28
Ceramic tiles 26 28
Sand lime bricks 6 5
Fly ash bricks 6 5


Medical Supplies

Items Current tax rate % After GST rate %
Human blood 0 0
Condoms/contraceptives 0 0
Glands & other organs 12 12
Ayurvaedic 12 12
Homeopathic 12 12


Metals & Minerals

Items Current tax rate % After GST rate %
Peat 19.5 5
All ores and concentrates 18.5 5
Kerosene PDS 17 5
Petroleum coke, petroleum bitumen 27.5 18
Tar 12 5
Coal 12 5
Lignite 12 5
Copper bars, rods, wires 18.5 18
Copper screws, nuts, bolts 18.5 18
Nickel bars, rods, wires 18.5 18
Nickel screws, nuts, bolts 18.5 18
Nickel tubes, pipes, netting 18.5 18
Aluminium ingots, rods, wires 18.5 18
Lead plates, sheets, strips 18.5 18
Zinc goods 18.5 18
Tin bars, rods 18.5 18


Beauty and Personal Care

Items Current tax rate % After GST rate %
Manicure, pedicure sets 26 28
Perfumes 26 28
Beauty or makeup preparations 26 28
Skincare items including sunscreen 26 28
Shampoos, hair cream, hair dyes 26 28
Wigs, false beards, eyelashes 26 28
Kajal 28 18


Kitchenware & Appliances

Items Current tax rate % After GST rate %
Stoves (except kerosene, LPG) 18.5 28
Electrical hot plates 18.5 28
Aluminium utensils 18.5 12
LPG for domestic supply 17 5
Household copper articles 18.5 5
Copper utensils 18.5 5
Iron/steel/household articles 18.5 5
Iron/steel/kerosene stoves 18.5 5
Steel cutlery 18 12

Dairy and Farm Products

Items Current tax rate % After GST rate %
Fresh Milk 0 0
Fresh vegetables, roots & tubers 0 0
Fresh fruits 0 0
Fruits & vegetable juices 12 12


Eating Out & Phone Call

Items Current tax rate % After GST rate %
Telecom 15 18
Work contract 15 12
Non- A/C alcohol serving restaurant 13-14 12
A/c alcohol serving restaurant 22 18
Five star restaurant 18 28

Others

Items Current tax rate % After GST rate %
Rubber Tyres 18.5 28
Steam 0 12
Plastic product 18.5 28
Pianos 26 28
Children’s drawing books 0 0
Calcerous stone 18.5 28
Artists’, students’ or signboards colours 18.5 12
Nuclear fuel 0 5
Heavy water and other nuclear fuels 0 5
Compressed air 0 5
Solar water heater 0 5
Renewable energy devices 0 5
Braille typewriters 13.5 18
Revolvers 26 28
Artificial flowers 26 28
Animal or human blood vaccines 6 5
Power driven water pumps 12.5 12
Padlocks, locks 18.5 18
Helmets 18.5 18
Fertilizers 18.5 12
Tractors 18.5 12
Sewing/knitting needles 18.5 12
Agricultural implements 12.5 0
Firewood 12.5 0
Geometry boxes 18.5 5
Solar panels 5
Packed food items 5
Beedis 28
Tendu leaves 18
Natural yarn 5
Man made yarn 18

In case you are confused about  GST as a business owner, feel free to consult the experts at GST at LegalRaasta and get comprehensive assistance on GST Registration  and  GST Return FilingYou can also use our GST Software for doing end-to-end GST compliance.,