GST Tax Slab Rates List in India

The slabs of GST are already known to everyone, which are pegged at 5%, 12%, 18% and 28%. As per latest news from the GST council, the tax structure under GST for common use goods is described below by loanbaba:

GST Tax Slab Rates India
Tax Rate 5% 12% 18% 28%
Products Tea, coffee, edible oil, spices, sugar, coal, Indian sweets (mithai/ mishti) life saving drugs Processed food, computers Soaps, toothpaste, hair oil (FMCG) Industrial intermediaries and capital goods Consumer durables like TV, refrigerators, AC Small cars (+1 and +3% cess) Luxury items like luxury cars (BMW, Porsche) Sin items like cigarettes, high end motorbikes (+15% cess)

A few other items have also been announced by the Council at the time of announcement of GST rate list 2017, in addition to above mentioned structure. These items are discussed below along with the applicable rates:

  • However tea, edible oils, coffee and sugar will be falling under the slab of 5%, cereals and milk will be exempted from tax under goods and services tax. This thing is done in order to ensure that basic goods/ necessities are available at affordable prices to the public; however, instant food is not included in this bracket.
  • By setting the GST rates India for industrial intermediaries and capital goods items at 18%, the Council aims at rendering a positive impact to the domestic manufacturers. This will be possible with to the availability of seamless input credit for all capital goods.
  • Taxing coal at 5% (lowest slab) against 11.69 % (current rate) will be impacting heavy industries and power sector positively as these sectors rely on coal supply and decrease in the price of coal will effect overall profitability and decrease in cost of production.
  • As per the present structure, cosmetics and FMCG (fast moving consumer goods) are taxed at 28%, but with introduction of goods and services tax they will be taxed at 18% which will impact in reduction of prices of hair oil, soap, toothpaste and similar cosmetics and FMCG items.
  • It is with the introduction of GST rates that the Indian sweets will be taxable at the rate of 5%.
  • Tax rate will be 18% for restaurants which serve alcohol.
  • Education and healthcare will be exempted from tax under GST.
  • Services in non-AC restaurants will be taxed at 12%.
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