All about GST

GST Rate Structure


The GST council has lifted the veil from GST rates across goods and services. Find out what rates will be applicable on different goods and services. 

GST council has made the much-awaited announcements around tax rates on various categories of goods. After much of a hype for a while these rates are finally in public domain.

 Everyone is evaluating themselves as a result of this change. So in this article, we bring you the GST rates.

We already know that the GST slabs are pegged at 5%, 12%, 18% & 28%. The tax structure for common goods are as under.

GST Rate Structure

Tax Rates Products
5% Edible oil, sugar, spices, tea, coffee (except instant) Coal (instead of current 11.69%)
Mishti/Mithai (Indian Sweets)
Life-saving drugs
12% Computers, Processed food
18% Hair oil, toothpaste and soaps (currently at 28%) Capital goods and industrial intermediaries (big boost to local industries)
28% Small cars (+1% or 3% cess) Consumer durables such as AC and fridge
Luxury & sin items like BMWs, cigarettes and aerated drinks (+15% cess)
High-end motorcycles (+15% cess)
Beedis are NOT included here




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

  • The Council has set the rate for capital goods and industrial intermediate items at 18 per cent. This will positively impact domestic manufacturers as seamless input credit will be available for all capital goods. “Make In India” being promoted.

  • Coal to be taxed at 5 percent against current 11.69 per cent. This will prove beneficial for the power sector and heavy industries which rely on coal supply. Coal sector could see some movement now.

  • 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 FMCG brands should get the benefit of this tax reduction.

  • The ‘mithai’ from the neighboring shop will now lose some of its flavor as Indian sweets will now be taxable at 5 per cent. If you are a sweet lover, this could hurt your pocket in the coming days
  • For restaurants serving alcohol, the tax bracket will be 18 per cent

  • Education, healthcare exempted from GST

  • Services on Non-AC restaurants will be 12 per cent

Download Chapter Wise Complete List of GST Rates for Goods
 
Download Chapter Wise Complete List of GST Rates for Services
Amit K Arora
 

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