Goods and Services Tax (GST) is a value-added tax that is levied on the supply of goods and services in India. Various GST slab rates have been defined to enhance transparency between the customers and sellers in this taxation process. Each of these slabs includes different categories of items depending on certain parameters.
Almost 500+ services and over 1300 products fall under the 4 major GST slabs in India. These comprise rates of 5%, 12%, 18%, and 28%. These rates are decided by the GST Council. This Council revises the rate slab of goods and services periodically. The GST rates are usually high for luxury supplies and low for essential needs.
List of Various GST Tax Slabs Rates in India:
GST rates in India for various goods and services are divided into four slabs: 5% GST, 12% GST, 18% GST, and 28% GST.
Exempted GST Rate Slab (No Tax)
7% goods and services fall under this category.
- Goods – No taxes will be levied on goods like sanitary napkins, deities made of stone, marbles or wood. Rakhis without any precious metals like gold, silver, raw material used in brooms, Salt, sanitary napkins are also exempted. Whole food materials, eggs, newspaper, statues of god made of stone, children’s picture book also fall under this category.
- Services – All hotels and lodges who carry a tariff below INR 1,000 are exempted from taxes under GST. The list also includes IMM courses and bank charges on savings account.
5% GST Rate Slab
14% goods and services fall under this category.
- Goods – Spices, chapati, edible oil, bread, pizza bread, fish, Khakhra, tea and coffee (but not instant coffee), baby food, sugar, nuts, sweets, vegetables, non-brand namkeen, atta chakki, coal, biogas, fertilisers, medicines and drugs (for live-saving incidents), incense sticks (agarbatti).
- Services – aircraft lease, crude and petroleum transport, takeaway food, economy flight tickets, paper printing, tailoring, AC cabs and taxi, AC and Non-AC restaurants (with a turnover of INR 50 lakhs).
12% GST Rate Slab
17% of goods and services fall under this category.
- Goods – Frozen meat, meat sausages, juices, sauces (not salad dressing), cakes, pickles, boiled sugar, products made of milk such as (Ghee, Butter and Cheese), drinking and coconut water.
- Services – Business class flight tickets, movie tickets, hotel stay (Price < INR 7,500), eating and drinking outlet (with no liquor license)
18% GST Rate Slab
43% of goods and services fall under this category.
- Goods – Mineral water, raw pasta, biscuits, pastries, soup, cornflakes, curry powder and paste, preserved vegetables, food mixes and other supplements and condiments, refined sugar, Cocoa butter, Ice cream, edibles like chocolate as well as chewing gum.
- Services – Movie tickets (> INR 100), Hotel accommodation (>= INR 7,500), Daily room (from INR 2,500 and 5,000), restaurants located in hotels (> INR 7,500 daily tariff), telecom and other IT services, catering.
28% GST Rate Slab
19% of goods and services fall under this category.
- Goods – Aerated water (with or without added sugar), instant coffee, chocolates (with no cocoa), protein, coffee and custard concentrates, molasses and sugar syrup,
- Services – Hotel stay wherein bill is > INR 7,500, gambling, go-karting, ballet, club services such as casinos, theme parks, amusement parks, and joy rides.
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Note: This Post was last updated on February 14, 2023
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