Goods and Service Tax (GST) Regime to roll out from July 01, 2017 !!!

The Goods and Service Tax (GST) regime to roll out from July 01, 2017. The government has kept a large number of items under 18% tax slab. Indian Government has come up with various categories for 1211 items under various tax slabs.

Recommended Read : What is GST?

Also Read : How will GST Work?

Goods and Service Tax (GST) Regime to roll out from July 01, 2017. So, here is a tabular list of GST rates on Goods:

Commodities
GST Rate
Essential farm produced mass consumption items like milk, cereals, fruits, vegetable, jaggery (gur), food grains, rice and wheatNIL
Common use and mass consumption food items such as spices, tea, coffee, sugar, vegetable/ mustard oil; newsprint, coal and Indian sweetsNIL
Silk and jute fibreNIL
Gold, Silver and Processed Diamonds3%
Railway freight5%
Pharma (Life saving drugs)5%
Footwear up to Rs. 5005%
Cotton and natural fibre5%
Packaged foods like pickles, tomato sauce, mustard sauce and fruit preserves12%
Ayurvedic and homeopathy medicines12%
Processed foods12%
Fruit juices, live animals, meats, butter & cheese12%
Mobile phones12%
Ready made garments12%
Computer printers18%
Footwear above Rs. 50018%
All FMCG goods like hair oil, soaps, toothpaste and shampoos; chemical and industrial use intermediaries18%
LPG stoves, military weapons, electronic toys18%
Pastries, cakes, pasta, ice creams, soups18%
Man made fibre and yarn18%
White and brown goods like TV, refrigerator, AC, washing machines, microwave ovens; soft drinks and aerated beverages28%
Cement28%
Perfumes, revolver, pistols28%
Chocolates, chewing gum, waffles containing chocolate28%
Luxury and de-merits goods and sin category items e.g. tobacco, pan masala28% + cess
Small cars – petrol driven28% + 1% cess
Small cars – diesel driven28% + 5% cess
Cigarettes28% + 5% cess
Luxury cars28% + 15% cess
Heavy bikes, Luxury yachts, private jets31%

A tabular list of GST rates on Services:

Services
GST Rate
Sleeper, metro tickets and seasonal passes
NIL
Outsourcing (in industries such as gems and jewellery, textiles)
5%
Railways (AC)
5%
Restaurants with annual turnover less than Rs. 50 lakhs
5%
Cab aggregators like Ola, Uber
5%
Hotels with tariff Rs. 1,000 - 2,500
12%
Non-AC restaurants without liquor license
12%
Real estate (Work contracts)
12%
State run lotteries
12%
Airlines (Business class)
18%
Telecom, financial service
18%
Hotel room tariff Rs. 2,500 - 7,500
18%
AC restaurants with liquor license
18%
Movie tickets below Rs. 100
18%
Hotel room tariff above Rs.7,500
28%
Movie tickets above Rs. 100
28%
5 star hotels
28%
State authorized lotteries
28%

Recommended Read : Difference Between Current Tax Structure and GST

GST Exemptions :

If you compare GST Structure and the Current Tax Structure, you will see the following exemptions in Goods as well as in Services:

GST Exemptions – Goods:
Commodities
Current Tax Structure
GST Structure
Food(essential unprocessed foods such as cereals, edible oil, vegetable, pulses)
Exempt
Exempt
Clothing
Low rate
Low rate
Medicines
Low rate
Low rate
Gold and precious metals (gems and jewelry)
Centre: exempt; States: low rate (1%)
Very low rate (2-6%)
Power
Centre: Exempt; State: Subject to Electricity Duty
Excluded State taxes will be continued
Alcohol
High demerit rate (states only)
Excluded State taxes will be continued
Tobacco
High demerit rate
Excluded Central and State taxes will be levied separately
Luxury cars
High demerit rate
High demerit rate
Aerated beverages
High demerit rate
High demerit rate
Petroleum
High demerit rate
Exempt for now, present tax will be continued till the time decide by GST COUNCIL
Real estate land
Exempt
Exempt
GST Exemptions – Services:
Commodities
Current Tax Structure
GST Structure
Education
Exempt
Exempt
Health(excluding medicines)
Exempt
Exempt

Click on the link below to know the Revised Chapter Wise GST Rate Schedule:

More from GST:

  • It is expected to make your home loan EMI cheaper in the coming months, if you have a home loan for a property which is under construction. Also, the government told that there will be a reduction in home prices after the implementation of GST. And, the prices of real estate will also reduce in the short term as builders will pass on the benefits of lower tax to the home buyers.
  • Insurance premium and credit card bills will become costlier under GST from 1st July, 2017. The leading credit card providers, banks and insurers have also started alerting their customers to pay a higher tax on the services.  Services including service tax, insurance services and credit card bills, which are currently taxed at the rate of 15% will now become costlier by 3%.
  • GST Council has announced the relaxation of 2 months for filing GST returns by the taxpayers. It has clarified that no late fees will be charged from the taxpayers filing GST returns till September, 2017. The initiative taken by the GST Council aims to provide convenience to the taxpayers by giving them appropriate time to tune in with the new system which is likely to roll out from 1st July, 2017.

 

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