gst tax rates in india

GST Tax Rates: New Reform Under Old Regime


Post GST implementation on July 1, changes can equally be seen in the purview of Goods and Services Tax(GST) ambit held during 20th & 21st GST Council Meetings of India. Let’s examine the changes which have been witnessed during GST Council Meetings:

Changes in GST Rate

The following are the changes that GST tax rates has brought in lines within the ambit of 20th Meeting of GST Council held on 05-08-17:

  • Textile Job works : The rates have been brought down to 5%
  • Government Works Contract: The rates reduction have been witnessed to 12% with ITC
  •  Job work for Printing Books and Newspaper: The GST rate has been brought down at 12%(if only the excerpts provided by the publisher and all extracts from paper etc belongs to printer)
  •  Job work for Printing Books and Newspaper: It will be 5%(if the data used belongs to publisher but not to Printer)
  •  Agriculture Harvest post Harvest : have been brought down to 12%
  •  Entry to Planetarium : the rate have been brought down to 18%
  •  Cab operator on Rent : allowed for a 12% GST with full ITC. 5% GST without ITC will also follow
  •  GTA: allowed for a 12% GST with full ITC under forwarding charge. 5% GST without ITC will also follow(No matter, the GTA has to provide an option from the start of financial year)
  •  Tractor parts: would apply the Goods and Services Tax(GST) rate of 18% rather than 28% previously.
  •  Commission/Margin: has been kept at 0% which is payable to Fair Price Shop Dealers by Central/State Governments
  •  For housekeeping services: such as plumbers through e-commerce operator, it is the liability of the accumulates to pay GST
  • Goods and Services used particularly for the objective of conducting FIFA Youth World Cup later this year in India has been excluded from GST.

GST on Hotels

The below-mentioned are the GST slab rates for hotel industry:

12% GST

Hotels, inns, guest houses, which have a room tariff of ₹1000 and above but less than ₹2500 per room per night will levy 12% GST.

18% GST

The services industry attracting 18 per cent GST includes services from AC hotels that serve liquor, telecom services, IT services, branded garments and financial services. Room tariffs between ₹2,500 and ₹7,500 and restaurants inside five-star hotels also attract 18 per cent GST.

28% GST

The hotel room with tariffs above ₹7,500, private-operated lotteries authorized by the states, 5-star hotels, race club betting and cinema now come under GST ambit of 28%.

GST on Lotteries

As per declaration laid out during 17th meeting of GST Council, various tax slabs have been authorized on the Government and private lottery. Within the GST ambit of 18% and Government Authorized Private lottery, 28% tax rate has been fixed on the State Run Lottery.

Updated GST Rates

  • The reduction of GST on  unbranded Ayurvedic medicines has been seen from 12% to 5%.
  • The tax rate for man-made yarn has been curtailed down from 18% to 12%. The decision will cause a huge impact on the textiles.
  • The GST rate on many job work items has been curtailed down from 12% to 5%. GST rate on some stationery items, diesel engine parts has also been curtailed down from 28% to 18%.
  • The GST rate on khakra and unbranded namkeen has been brought down from 12% to 5%. Tax on zari work has been reduced down from 12% to 5%.
  • 35% reduction in an old leasing vehicle contract.
  • The printing job revision has been witnessed from 12% to 5%.

GST on Car Buyers

The GST on car buyers have to bear down certain cess charges as follows:

  1. There has been a slight increase in the cess as compared to the maximum rate as specified earlier.
  2. There has been an increase in cess from 15% to 25% as per the provision of laws specified.
  3. The total tax incidence is recorded lesser than 50%
  4. There has been no change in the cess rate for small cars
  5. There has been no increase in cess rate for hybrids, 13-seaters
  6.  There has been lower segmentation cess applicable on smaller cars
  7. There has been cess applicable on mid-sized cars which has been raised from 15% to 17%.
  8.  There has been cess applicable on large cars which has been raised from 15% to 20%.
  9. There has been cess applicable on SUV which has been raised from 15% to 20%.

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