Know about all GST Tax Rates...

We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. According to the latest news from the GST council, the tax structure for common-use goods are as under:

Tax rate and products:

0%

Milk, Kajal, Eggs, Educations Services, Curd, Health Services, Lassi, Children’s Drawing & Colouring Books, Unpacked Foodgrains, Unbranded Atta, Unpacked Paneer, Unbranded Maida, Gur, Besan, Unbranded Natural Honey, Prasad, Fresh Vegetables, Palmyra Jaggery, Salt, Phool Bhari Jhadoo

5%

Sugar, Packed Paneer, Tea, Coal, Edible Oils, Raisin, Domestic LPG, Roasted Coffee Beans, PDS Kerosene, Skimmed Milk Powder, Cashew Nuts, Footwear (< Rs.500), Milk Food for Babies, Apparels (< Rs.1000), Fabric, Coir Mats, Matting & Floor Covering, Spices, Agarbatti, Coal, /Mithai (Indian Sweets), Life-saving drugs, Coffee (except instant)

12%

Butter Computers, Ghee, Processed food, Almonds, Mobiles, Fruit Juice, Preparations of Vegetables, Fruits, Nuts or other parts of Plants including Pickle Murabba, Chutney, Jam, Jelly, Packed Coconut Water, Umbrella

18%

Hair Oil, Capital goods, Toothpaste, Industrial Intermediaries, Soap, Ice-cream, Pasta, Toiletries, Corn Flakes, Computers, Soups, Printers

28%

Small cars (+1% or 3% cess), High-end motorcycles (+15% cess), Consumer durables such as AC and fridge, (Beedis are NOT included here), Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)

In addition to the above, a few other items were mentioned in the Council’s announcement of rates. These items and the applicable rates on them are as follows:

Sugar, Tea, Coffee and Edible oil will fall under the 5 percent slab, while cereals, milk will be part of the exempt list under GST. This is to ensure that basic goods are available at affordable prices. However, instant food has been kept outside this bracket so, no relief for Maggie lovers!

The Council has set the rate for capital goods and industrial intermediate items at 18 percent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. Indeed, it is time for “Make In India”.

Coal to be taxed at 5 percent against current 11.69 percent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. This will also help curb inflation. Expect a good run for Coal India tomorrow.

Toothpaste, hair oil, and soaps will all be taxed at 18 percent, where currently they are taxed at 28 percent. Most of the cosmetics and fast moving consumer goods (FMCG) brands should get the benefit of this tax reduction. After all, Fair and Lovely might seem fairer in its pricing from now on!

The ‘mithai’ from the neighbouring sweet shop might lose some of its flavours as Indian sweets will now be taxable at 5 percent. If you have a sweet tooth, this could hurt your pocket a wee bit in the coming days.

Plus, it was announced that:

For restaurants serving alcohol, the tax bracket will be 18 percent

Education, healthcare are going to be exempted from GST

Services on Non-AC restaurants will be 12 percent

Source: Clear Tax

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