GST or Goods and Service Tax (GST) has been a storm in the Indian taxation regime. The whole nation has been affected by the new tax regime which is the replacement of Service Tax, VAT, etc. As a result, all day-to-day activities, as well as the professional life, is affected. So, it is also important for you to know how much your expenses have increased.
GST is applicable from the first step of the purchase of the raw material to the purchasing by the end customer. There are total 4 slabs that are 5%, 12%, 18% and 28%. Most of the day-to-day goods have been covered under 5% tax slab. But, the world is now ruled by young businesses and very less has been talked about the benefits of GST for the entrepreneurs in India.
Updated GST rates for Goods in India
Have a look at the list of items on which the GST rates have been updated recently.
Item Earlier GST rate Revised GST rate
Aam Papad 12% 5%
Khakda and Papad 12% 5%
Non-branded Namkeen 12% 5%
Non-branded Ayurvedic 12% 5%
& Homeopathy medicines
Nylon, Polyester and Acrylic 18% 12%
Handmade thread 18% 12%
Poster colors 28% 18%
Moulding paste 28% 18%
Selective stationery items 28% 18%
Selective parts of Diesel engine 28% 18%
Impact of GST on Financial Inclusion
Now that GST has taken over its position and has been implemented in each and every step where indirect taxes were applicable, you can surely expect a clear change in the future times. GST will enable financial inclusion in the Indian economy. With the migration of startup community to the digital record of every transaction, it will be easier to get investors in India as well from abroad.
FinTech organizations will have an easy access to the young generation and hence reach them for providing the services and strengthen their business. Also, it is said that in the future, GST will boost the GDP of India and reducing fiscal deficit.
GST Tax Rate in India 2017 pdf
If you want to review the whole GST tax rate list of products and services, you can visit the official government website of Goods and Service Tax (GST). GST rates list PDF is downloadable and contains full details.
GST Rates for Goods
Goods and Service Taxes are applicable to the items mentioned below. You can review the GST slab rates for the goods/items and which of the products have become cheaper and which have increased your expenses.
- 0% GST Rate List– Milk, fruits, vegetables, bread, salt, bindi, curd, sindoor, natural honey, bangles, handloom, besan, flour, eggs, stamps, printed books, judicial papers, and newspapers.
- 5% GST Rate List- Skimmed milk powder, fish fillet, frozen vegetables, coffee, coal, fertilizers, tea, spices, pizza bread, kerosene, ayurvedic medicines, agarbatti, sliced dry mango, insulin, cashew nuts, unbranded namkeen, lifeboats etc.
- 12% GST Rate List- Frozen meat products, butter, cheese, ghee, pickles, sausage, fruit juices, namkeen, tooth powder, medicine, umbrella, instant food mix, cell phones, sewing machine, man-made yarn, etc.
- 18% GST Rate List– Refined sugar, cornflakes, pasta, pastries and cakes, preserved vegetables, tractors, ice cream, sauces, soups, mineral water, stones used in flooring other than marble & granite, stationery items like clips, some diesel engine parts, some parts of pumps.
- 28% GST Rate List– Over 200 goods will be taxed at a rate of 28% like deodorants, chewing gum, hair shampoo, sunscreen, pan masala, dishwasher, weighing machine, vacuum cleaner. Other items include shavers, automobiles, hair clippers, motorcycles.
However, GST is most likely to cut rates for 80% of the items under 28% GST rate list.
GST Rates on Services
- Hotels and lodges with tariff below ₹1000, special case service has been exempted from GST. Rough precious and semi-precious stones will attract GST rate of 0.25%.
- Transport services (Railways, air transport), and small restaurants.
- State-run lotteries, Non-AC hotels, business class air ticket, fertilisers, work contracts.
- AC hotels that serve liquor, telecom services, IT services, branded garments and financial services, Room tariffs between ₹2,500 and ₹7,500, Restaurants inside five-star hotels.
- Private-run lotteries authorised by the states, hotels with room tariffs above ₹7,500, 5-star hotels, race club betting.