India: GST Rates for Goods and Services approved by GST Council

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The GST Council held its 14th meeting in Srinagar on 18 May 2017 and 19 May 2017. In the meeting, the GST council has approved seven GST rules relating to Registration, Invoice, and Valuation, Input Tax Credit, Payment, Refund and Composition.

The GST Council has broadly approved the GST rates for about 1211 items along with the GST rates for services at a nil rate, 5%, 12%, 18% and 28%. The Council has also approved the GST Rate Schedule for Services to be taxed under a Reverse Charge along with the rates of GST Compensation Cess to be levied on certain goods.

The GST Council has finalised the following tax rates under GST:

0% tax (No tax):

  • Goods and foods: No tax (0%) will be imposed on items such as jute, fresh meat, fish chicken, eggs, milk, butter milk, curd, natural honey, fresh fruits and vegetables, flour, besan, bread, prasad, salt, bindi, Sindoor, stamps, judicial papers, printed books, newspapers, bangles, handloom, bones and horn cores, bone grist, bone meal, etc.; hoof meal, horn meal, cereal grains (hulled), palmyra jaggery, salt (all types), kajal, children’s picture, drawing or colouring books,  or human hair.
  • Services: Hotels and lodges with tariff below Rs 1,000 have been exempted from GST. Rough precious and semi-precious stones will attract a GST rate of 0.25 per cent.

5% Tax:

  • Goods: Items such as fish fillet, apparel below Rs 1000, packaged food items, footwear below Rs 500, cream, skimmed milk powder, branded paneer, frozen vegetables, coffee, tea, spices, pizza bread, rusk, sabudana, kerosene, coal, medicines, stent, lifeboats, cashew nuts, cashew nuts in the shell, raisins, ice and snow, biogas, insulin, agarbatti, kites, postage or revenue stamps, stamp-post marks, first-day covers.
  • Services: Transport services (railways, air transport) and small restaurants will be under the 5% category because their main input is petroleum, which is outside GST ambit.

12% Tax:

  • Goods : Apparel above Rs 1000, 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, cellphones, ketchup and sauces, all diagnostic kits and reagents, exercise books and note books, spoons, forks, ladles, skimmers, cake servers, fish knives, tongs, spectacles (corrective), playing cards, chess boards, carom boards and other board games, like ludo,
  • Services: State-run lotteries, non-AC hotels, business class air ticket, fertilisers and work contracts will fall under 12 per cent GST tax slab.

18% Tax:

  • Goods: Most items are under this tax slab which includes footwear costing more than Rs 500, Trademarks, goodwill, software, bidi patta, biscuits (all categories), flavoured refined sugar, pasta, cornflakes, pastries and cakes, preserved vegetables, jams, sauces, soups, ice cream, instant food mixes, mineral water, tissues, envelopes, tampons, note books, steel products, printed circuits, camera, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Aluminium foil, Weighing Machinery (other than electric or electronic weighing machinery), printers (other than multifunction printers), electrical transformers, CCTV, optical fiber, bamboo furniture, swimming pools and paddling pools, curry paste; mayonnaise and salad dressings; mixed condiments and mixed seasonings
  • Services: AC hotels that serve liquor, telecom services, IT services, branded garments and financial services will attract 18 per cent tax under GST. Also included in this category are room tariffs between Rs 2,500 and Rs 7,500 and restaurants inside five-star hotels.

28% Tax:

  • Goods: Bidis, chewing gum, molasses, chocolate not containing cocoa, waffles and wafers coated with chocolate, 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, motorcycles, and aircraft for personal use will attract 28 per cent tax slab under GST.
  • Services: Private-run lotteries authorised by the states, hotels with room tariffs above Rs 7,500, 5-star hotels, race club betting and cinemas will attract tax 28 per cent tax under GST.

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