GST Tax Slabs India’s migration to the GST regime, which subscribed to about 17 indirect taxes, perhaps one of the most notable tax-related developments of the last few decades.
A primary reason behind this transition was the elimination of the already prevalent cascading or “tax on tax” effect.
GST seeks to reduce the overall cost of goods and services by levying a single tax. Thus, ensuring uniformity in prices across India.
This makes the taxation system more transparent. This regime includes about 1300 varieties of goods and 500 types of services. Which are mainly classified at 4 GST rates.
What are the GST Slab Rates?
In India, almost all goods and services within the GST ambit are divided into four GST rates – 5%, 12%, 18%, and 28%. The GST Council periodically revises the inclusion under these rates to ensure efficient pricing of various categories of products.
The rate thus levied depends on whether a good or service is a necessity or luxury. In general, goods in need invite a lower tax rate, ie 5% or 12%. And luxury products are in slabs of 18% and 28%.
Apart from these, GST is 3% on gold and 0.25% on semi-precious and rough stones. Furthermore, a minor part of all goods and services under the GST regime does not invite any tax. Including different salt types and, more recently, sanitary napkins.
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Different types of GST Tax Slabs in India
GST Slab of 5%
Under this slab, basic amenities such as sugar, oil, spices, coffee, coal, fertilizer, tea, ayurvedic medicines, incense sticks, chopped dry mango, cashew nuts, sweets, handmade carpets, life-saving, fish fillets, unbranded. Saline, and life-saving drugs.
Services covered under this slab include railways, airways, takeaway meals, AC and non-AC restaurants, hotel rooms with tariffs of less than 7,500, and special flights for pilgrims.
GST Slab of 12%
Under this slab, products such as cell phones, sewing machines, umbrellas, jewelry boxes are covered with processed foods such as frozen meat, fruit juices, butter, cheese, ghee.
Services under this slab include business class flight tickets and movie tickets below ₹ 100.
GST Slab of 18%
Under GST tax slabs, such as hair oil, safety glass, pasta, pastry, ice cream, mineral water, hair shampoo, oil powder, water heater, washing machine, detergent, fragrance spray, leather clothes, cooker, oil powder, cutlery, binoculars Products are included.
Artificial flowers, wristwatch, suitcase, briefcase, shaving, after-shave, furniture, stationery items, mattress monitor, television screen, lithium-ion battery, video games.
Services covered under this slab include hotels whose tariffs are above actual 7,500, actual hotel bills below ₹ 7,500, movie tickets above ₹ 100.
GST Slab of 28%
Under these GST tax slabs, more than 200 products covered with cars, cigarettes, durable consumer products, high-end motorcycles, pan masala, weighing machines, cement.
Services under this slab include betting in casinos, betting, hotel real bills. There are above 7,500.
A special rate of 0.25% applied to semi-polished and cut stones.
GST Tax Slab Rates List for Goods
| 5% GST | 12% GST | 18% GST | 28% GST |
|---|---|---|---|
| Spices | Cakes | Washing Machine | Personal Aircraft |
| Frozen vegetables | Drip Irrigation System | Vacuum Cleaner | Sunscreen |
| Rusk | Photographes | Pasta | Tobacco |
| Fish fillet | Pack water bottle of 20 litre | Tyres | Hair clippers |
| Pizza bread | Butter | Biscuits | Bidis |
| Sabudana | Mechanical sprayers | Vanity case | Weighing machine |
| Tea | Ghee | Pastries | Waffles plus wafers which are coated with chocolate |
| Baby milk food | Almonds | Soups | Wallpaper |
| Plain Chapati & Khakhra | Pouches, purses and Handbags | Preserved Vegetables | ATM Vending Machine |
| Floor covering | Fruits | Camera | Yachts |
| Fertilizers | Art ware of iron | Curry paste | Motorcycles |
| Footwear under ₹ 1,000 | Boiled sugar confectionery | Instant food mixes | Ceramic tiles |
| Apparels under ₹ 1,000 | Packaged coconut water | Shampoo | Dishwasher |
| Real zari | Pickle | Printers | Aerated Water |
| Agarbatti | Mirrors framed with Ornaments | Mixed condiments | Pan Masala |
GST slab rates List of Services
| GST Slab Rate | Services |
|---|---|
| 5% | Aircraft Leasing |
| Crude and Petroleum products Transport | |
| Passenger transport in economy class by air | |
| Newspaper printing | |
| Passenger transport by cabs and radio taxi | |
| Restaurants both AC and Non-AC | |
| Job work done for leather and footwear goods | |
| Ad space selling in print media | |
| Tailoring | |
| Takeaway Food | |
| Restaurants with a turnover of ₹ 50 Lakh | |
| 12% | Air travel apart from economy class |
| Common Effluent treatment plants | |
| Movie tickets priced up to Rs. | |
| Building construction for sale Hotel accommodation with per room per night charge up to ₹ 7,500 | |
| Temporary basis IP rights | |
| Crude or natural gas mining and drilling. | |
| 18% | Outdoor Catering |
| Theme parks, water parks, circus, folk, theatre, drama, classical. | |
| IT services | |
| Hotel stay with bill above ₹ 7,500 | |
| Room tariff above ₹ 2,500 but less than ₹ 5,000 per room per night in Hotels, inns, and guest houses. | |
| Telecom services | |
| 28% | Food/Drinks/Stay at AC Five Star Hotels |
| Betting at race club and gambling | |
| Hotels, inns, guest house with room tariff above ₹ 5,000 | |
| Cinema |
GST Tax slabs on Loans & Advances
Service tax was levied at the rate of 15% before GST came into force. Now, GST is levied on loans at the rate of 18%. With the rate being 3% higher according to the GST than the service tax, many thought it would place an additional burden on EMI; However, this is not the case. This is because GST is not levied on loan repayment or interest payments. Loans and advances are levied on GST processing charges and all other charges due to the bank in addition to repayment of loan and payment of interest.
Since GST is levied only on charges, its effect on principal payments and interest payments is negligible. The GST rate on popular loans is;
Personal Loan – 18%
Home Loan – 18%
Business Loan – 18%
GST tax slabs on Cars
The GST rate on cars has been fixed at 28% for all vehicles that have petrol or diesel engines. Along with the applicable slab rate, a structure cess is also applicable. Therefore, the effective rate of GST will be from 29% to 50%. For environmentally powered cars, favorable fuel rates such as fuel cells and electricity are low.
GST on Gold
The current rate of GST on gold items such as gold jewelry is 3%. However, 5% of GST is applicable for levying gold jewelry when the manufacture of the jewelry is outsourced to a job worker. A jeweler can take an input tax credit for making a charge. In the final bill to the customer, only 3% of GST is applied.
GST on Real Estate
In the case of immovable property, GST is levied only when an under-construction property is purchased. With effect from April 1, 2019, GST is applicable at the rate of 1% for affordable house properties and 5% for non-affordable house properties. The rate of GST varies between 5% to 28% for various building materials used for construction. However, no GST is levied when you buy ready to move in the property.
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