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

FeaturesTaxRaahiTally
Aluminum Foil18.528
Agarbatti012
Frozen meat612
Dry Fruits612
Coffee/tea65
Preserved vegetables018
Butter, ghee, cheese612
Jams, jellies1218
Branded paneer05
Branded cereals05
Cocoa butter, oils chocolates2628
Instant, aroma coffee2628
Protein concentrates, sugar syrups2628
Razors2628
Dental floss2628
Toothpaste2628
Deodorants2628
Aftershave2628
Shaving cream2628
Soyabean, groundnut, sunflower seeds65
Infant use preparations19.518
Pasta, corn flakes, cakes19.518
Frozen vegetables65
Condensed milk18.518
Toilet paper18.518
Hot water bottles18.518
Petroleum jelly, paraffin wax2018
Pencil sharpeners, knives18.512
Ice cream, sherbet2618
Refined sugar2618
Soap2618
Dentrifices – toothpaste2618
Hair oil2618
Handmade safety matches18.55
Broomsticks185
Candles2612
Tooth powder2612
Led lights2612
Milk beverages2612
Ready to eat namkeen/bhujiya2612
Beet sugar, cane sugar265
Pickels1812


Lifestyles & Home Items

ItemsCurrent tax rate %After GST rate %
Air conditioner2628
Refrigerator2628
Leather bags628
Cell phones618
Bicycles18.518.5
Yachts18.528
Storage water heaters2628
Dish washing machines2628
Printer, photocopier, fax machines2618
Wristwatches2628
Furniture2628
Video game consoles2628
Exercise equipments2628
Sports goods18.512
Spectacle lens18.512
Whey proteins & Fitness supplements2618
Hats and other headgears2618
Steel utensils18.55


Construction

ItemsCurrent tax rate %After GST rate %
Cement2630
Paints2830
Wallpaper18.528
Putty2628
Plaster2628
Tempered Glass2628
Ceramic tiles2628
Sand lime bricks65
Fly ash bricks65


Medical Supplies

ItemsCurrent tax rate %After GST rate %
Human blood00
Condoms/contraceptives00
Glands & other organs1212
Ayurvaedic1212
Homeopathic1212


Metals & Minerals

ItemsCurrent tax rate %After GST rate %
Peat19.55
All ores and concentrates18.55
Kerosene PDS175
Petroleum coke, petroleum bitumen27.518
Tar125
Coal125
Lignite125
Copper bars, rods, wires18.518
Copper screws, nuts, bolts18.518
Nickel bars, rods, wires18.518
Nickel screws, nuts, bolts18.518
Nickel tubes, pipes, netting18.518
Aluminium ingots, rods, wires18.518
Lead plates, sheets, strips18.518
Zinc goods18.518
Tin bars, rods18.518


Beauty and Personal Care

ItemsCurrent tax rate %After GST rate %
Manicure, pedicure sets2628
Perfumes2628
Beauty or makeup preparations2628
Skincare items including sunscreen2628
Shampoos, hair cream, hair dyes2628
Wigs, false beards, eyelashes2628
Kajal2818


Kitchenware & Appliances

ItemsCurrent tax rate %After GST rate %
Stoves (except kerosene, LPG)18.528
Electrical hot plates18.528
Aluminium utensils18.512
LPG for domestic supply175
Household copper articles18.55
Copper utensils18.55
Iron/steel/household articles18.55
Iron/steel/kerosene stoves18.55
Steel cutlery1812

Dairy and Farm Products

ItemsCurrent tax rate %After GST rate %
Fresh Milk00
Fresh vegetables, roots & tubers00
Fresh fruits00
Fruits & vegetable juices1212


Eating Out & Phone Call

ItemsCurrent tax rate %After GST rate %
Telecom1518
Work contract1512
Non- A/C alcohol serving restaurant13-1412
A/c alcohol serving restaurant2218
Five star restaurant1828

Others

ItemsCurrent tax rate %After GST rate %
Rubber Tyres18.528
Steam012
Plastic product18.528
Pianos2628
Children’s drawing books00
Calcerous stone18.528
Artists’, students’ or signboards colours18.512
Nuclear fuel05
Heavy water and other nuclear fuels05
Compressed air05
Solar water heater05
Renewable energy devices05
Braille typewriters13.518
Revolvers2628
Artificial flowers2628
Animal or human blood vaccines65
Power driven water pumps12.512
Padlocks, locks18.518
Helmets18.518
Fertilizers18.512
Tractors18.512
Sewing/knitting needles18.512
Agricultural implements12.50
Firewood12.50
Geometry boxes18.55
Solar panels5
Packed food items5
Beedis28
Tendu leaves18
Natural yarn5
Man made yarn18

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.,