List of GST Rates
On Friday, GST council has fixed certain rates for a range of services, putting it under four slabs- 5-12-18 and 28 percent. Supply of goods (inputs), services and manufacturing come under these types of taxable activities which, in turn, leave a direct impact on the work contract. VAT is imposed on supply of goods and on service tax. Central excise duty is levied on newly produced items and many feel GST will bring in simplification in indirect tax structure.
Prior the Centre had proposed the tiers of rate as 6-12-18 and 26 percent. The rate increased is for FMCG and consumer durable and the rate has been increased from 26 to 28 percent, when the slab of 6% is reduced to 5 % . Rest slabs of 12 percent and 18 percent have been retained.The finance minister stated that 50 percent goods comprising CPI basket will attract no tax.
1. Items like fresh meat, fish, chicken eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, bangles, handloom, flour, besan, bread, prasad, salt, bindi, Sindoor, stamps, judicial papers, printed books, newspapers, etc will attract no tax.
2. Hotels and lodges whose tariff is below Rs 1000 are exempted from GST.
3. There would 5 % GST on Items such as fish fillet, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent and lifeboats.
4. Railway, air transport, small restaurants services would be charged 5% GST.
5. The 12 % slab goes to goods like Frozen meat products , butter, cheese, ghee, dry fruits in packaged form, animal fat, sausage, fruit juices, Bhutia, namkeen, Ayurvedic medicines, tooth powder, agarbatti, colouring books, picture books, umbrella, sewing machine and cell phones.
6. Business class air ticket, fertilisers, Work Contracts and Ac-Hotels services would be charged 12% GST.
7. IT services, branded garments, telecom service and Ac hotels that serve liquor will attract 18% GST.
8. The highest slab under GST would be applicable on goods like motorcycles, aircraft for personal use, pan masala, aerated water, paint, deodorants, shaving creams, after shave, hair shampoo, dye, sunscreen, wallpaper, ceramic tiles, water heater, dishwasher, weighing machine, washing machine, ATM, vending machines, vacuum cleaner, shavers, hair clippers, automobiles, Chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate. The GST tax applicable would be 28%.
9. Race club betting, cinema and 5 star hotels will also come under the slab of 28% GST.