GST Tax Rate Structure
Goods and service tax is with the lower rates for some items also a highest for de-merits also luxury goods that would also attract the additional, was decided by all-powerful GST Council.
The lower tire is 5% would for the common use items and there be the two standard rates of 12% and 18% under the GST regime. Tobacco, aerated drinks, and Luxury cars also levied with the addition on top of the highest tax rate.
GST is glorified the system of taxation by an economy will take upward swing also further it was the trade also an industry with respect to the indirect tax system of the country. An indirect tax has to paid by trade and industry also the other indirect taxes will subsume in GST.
What is GST?
Goods and Service Tax is called as GST in short, which means a unified indirect tax all over the country on products and services.
As per the past system, the tax is levied at every stage separately by the Union Government and the State Government at different rates, on the full value of goods.
But as per GST system, the tax will be levied only on the value-added at each stage. It’s a single tax (collected at multiple points) with full set off for taxes paid earlier in the value chain
GST is established on July 1, 2017, as the Constitution Act 2107 by the passage of Constitution 122nd Amendment Bill and it is governed by a GST Council and Arun Jaitley the Finance Mister of India is the chairman of GST
What is State GST and Central GST?
There are 2 components of GST, for transactions within the state and they are called as State GST and Central GST which levied on the value of Goods and Services. Both the Central and State will impose GST simultaneously across the value chain.
In a case of interstate transactions, the central will levy and collect the integrated Goods and Services Tax (IGST) and the IGST is silently relevant to CGST plus SGST.
Under GST the Goods and services will be taxed as following o, 5%, 12%, 18% and 28% and there will be a special rate of 0.25% on semi – precious stones and rough precious stones and even 3% on gold.
GST tax structure in 2017:
Goods and Services Tax (GST) has the main thing to the attention of the market given implications on earnings of companies. The government has kept a large number of items under the 18% tax slab. In this article, you can get the clear update list. Gold and rough diamonds don’t fall under the present rate slab also will tax are 3% also 0.25% respectively.
|0%||There is no tax on the items like fresh meat, Jute, eggs, fish chicken, butter milk, milk, fresh fruits, curd, natural honey,vegetables, flour, bread, besan, Prasad, bindi, sindoor,stams, salt, judicial papers, newspapers, printed books, hand loom, bangles, Bone and horn cores, bone meal, bone grist etc., hoofmeal, cereal grains hulled, Kajal, Palmyra jiggery, drawing books and Humab hair.||Lodges and Hotel with the tariff below Rs 1000, Grandfathering serve that has exempted under GST. Rough precious also semi-precious stones will attract GST rate of 0.25%|
|5%||Items like fish fillet, Packaged food items, Apparel below 1000 ruppes, footwear below Rs 500, skimmed milk power, cream, branded panner, coffee, frozen vegetables, tea, pizza bread, spices, sabudana, rusk, coal, kerosene, medicines, lifeboatsm stent, Raisin, Cashew nut, Cashew nut in shell, Ice and snow, Insulin, Bio gas, Kites, Agarbatti, revenue or postage stamps, first day covers, Stamp-post marks||Transport services like air and rail ways, Small restaurants under the 5% category and their main input is petroleum which is outside of GST ambit|
|12%||frozen meat products, Apparel above Rs 1000, cheese, dry fruits in packaged form, butter, ghee, fruit juices, sausage, Bhutia, Ayurvedic medicines, colouring books, sewing machine, namkeen, animal fat, Playing cards, chess board, carom board and other board games as ludo, All diagnostic kits and reagents, tooth powder, picture books, umbrella, Ketchup & Sauces, cellphones, Exercise books and note books, skimmers, cake servers, Spoons, ladles, fish knives, tongs, tongs, forks, Spectacles, agarbatti, corrective||Non-AC hotels, business class air ticket, State-run lotteries, fertilisers, Work Contracts will fall below 12 % GST tax slab|
|18%||Footwear costing above Rs 500, flavoured refined sugar, Biscuits, pasta, Bidi Patta, pastries and cakes, cornflakes, Swimming pools and padding pools, Bamboo furniture, preserved vegetables, sauces, instant food mixes, envelopes, tissues, Curry paste, mineral water, mayonnaise and salad dressings, jams, soups, tampons, steel products, printed circuits, camera, ice cream, speakers and monitors, Kajal pencil sticks, Headgear and parts thereof, Electrical Transformer, CCTV, mixed condiments and mixed seasonings, note books, Weighing Machinery, Printers, Optical Fiber, Aluminium foil||Telecom services, IT services, AC hotels that serve liquor, branded garments also financial services will attract 18 % tax under GST, Room tariffs in between Rs 2,500 and Rs 7,500, Restaurants inside five-star hotels|
|28%||Chewing gum, molasses, Bidis, waffles and wafers coated with chocolate, chocolate not containing cocoa, weighing machine, pan masala, water heater, deodorants, shaving creams, washing machine, after shave, ATM, sunscreen, wallpaper, hair shampoo, hair clippers, automobiles, motorcycles, aircraft for personal use, dye, ceramic tiles, dishwasher, vending machines, aerated water, vacuum cleaner, shavers, paint, attract 28% tax the highest under GST system||Hotels with room tariffs above Rs 7,500, race club betting, Private-run lotteries authorised by the states, cinema will attract tax 28% tax slab under GST, 5-star hotels|