GST Rates in India 2018:

The GST rates has been revised hundreds of times since the inception of the products and Services Tax (GST). The current and the latest rate revision was brought into effect in the 28th GST Council meeting which was held on 21 July 2018. In this meeting, the council revised the count of 45 goods hundreds of services.

The following table reflects the changes within the rates applicable to the products and services:

Goods or commodities New rate Old rate
1) Rakhi (only if it is not made of semi-precious or precious material) Nil 18%
Sal leaves and products of goods and services are the same Nil 18%
Sanitary napkins Nil 12%
Raw material for brooms Nil 12%
Phosphoric acid of fertilizer grade 5% 12%
Commemorative coins Nil 5%
Coir pith compost Nil 5%
Handloom dari 5% 12%
Stone, wood deities, marble Nil 5%
Chenille fabrics 5% 12%
Marine engine 5% 28%
Jewellery boxes and handbags 12% 18%
Solid biofuel pellets 5% 18%
Knitted caps if the retail sales value exceeds Rs.1,000 5% 12%
Khali dona Nil 18%
Textile floor, handmade carpets 5% 12%
Bamboo flooring 12% 18%
Ethanol which is sold to companies that are responsible for marketing oil for mixing with fuel 5% 18%
Unpolished Kota stones and similar items 5% 18%
Brass kerosene pressure stove 12% 18%
Handicrafts that are not handmade 12% 18%
Zip and slide fastener 12% 18%
Rubber roller that is hand-operated 12% 18%
Fuel cell vehicle 12% 28%
Grafting putty, glaziers’ putty, resin cements 18% 28%
Televisions up to 68cm 18% 28%
Washing machines 18% 28%
Food mixers and grinders 18% 28%
Vacuum cleaners 18% 28%
Milk coolers, freezers, ice cream freezer, refrigerators, water coolers 18% 28%
Hair clippers and shavers 18% 28%
Hair cleaners 18% 28%
Storage water heaters 18% 28%
Hand dryers and hair dryers 18% 28%
Varnishes and paints, lacquers and enamels 18% 28%
Immersion heaters 18% 28%
Electric smoothing irons 18% 28%
Pads for applying cosmetics 18% 28%
Work trucks that are not fitted with handling/lifting equipments 18% 28%
Toilet sprays 18% 28%
Trailers and semi trailers 18% 28%
Lithium-ion batteries 18% 28%
Motor vehicles utilised for special purposes 18% 28%
Scent sprays 18% 28%
Powder puffs 18% 28%

GST Rates in India 2017

The GST Council has proposed a four-tier tax format wherein the rates are either nil or very low so far as essential food items are concerned. The reason for this can be that these food items constitute around 50% of the customer basket, and contributes significantly towards ensuring that widespread inflation is kept under control even after the revised tax slabs under GST had been implemented. Negative items and luxury goods, however, are expected to be taxed at a considerably higher rate so as to take care of revenue neutrality for state and central governments following the implementation of the new GST rates. Other precious metals are likely to visualize the implementation of an additional concessional GST tax slab as these metals are currently taxed at just 1% under VAT.

Following could be a table of commodities and services and therefore the GST rates applicable to them:

Commodities / Services GST Rate
Items that are listed in any other category, like electrical appliances, oil, soaps, etc. 18%
All services like professional charges, banking, fees, insurance,restaurant, telecom, etc. 18%
Essential farm manufactured mass consumption items such as wheat, rice, food grains, etc. NIL
Mass consumption and common use food items such as mustard oil, tea, spices, etc., but do not include processed foods 5%
Processed foods 12%
Cars and white goods 28%
De-merits and luxury goods and items that fall into the sin category, like aerated drinks, tobacco, luxury cars, pan masala, etc. 28% + CESS

GST Council implements rate cuts leaving 35 goods in the highest income tax bracket

By July 2018, the GST Council reduced tax rates on 190 goods, leaving only 35 items in the 28% tax category. Some of these include:

  • AC
  • Dishwashing machines
  • Digital cameras
  • Cement
  • Video recorders
  • Parts of automobiles
  • Motor vehicles
  • Tyres
  • Yachts
  • Aircrafts
  • Aerated drinks
  • Sin items like tobacco, cigarette, and pan masala

At the time of GST rollout, there have been 226 goods within the highest tax slab. Over a period of 1 year, the GST Council has slashed the taxation rates for 190 items in total. The highest tax slab could also be further rationalised to make sure that only sin goods and super luxury goods are taxed at 28%.

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